21 US states raising minimum wage in 2025 including California, New York and Washington - see the full list

Across the US, more than nine million workers are set to see an increase in their wage packets, mainly due to automatic adjustments in line with inflation. A total of 21 states will see planned minimum wage increases this year, according to non-profit economic think tank the Economic Policy Institute, in a $5.7 billion pay increase for workers nationwide.

While most are due to inflation-linked rises, other states are raising wages after political decisions. Several cities and counties have also raised minimum wage rates, as they have the power to do, including nearly 30 cities and counties in California, seven cities in Washington, and four cities in Colorado.

In the US, tipped workers (such as waiting staff and bar tenders) make under the minimum wage in many states, as it’s believed tips balance out their income. However, the think tank said this can leave tipped workers with less money, with some states deciding to increase the minimum wage for everyone but tipped workers.

21 US states raising minimum wage in 2025

• Alaska: New rate: $11.91. Old rate: $11.73. Reason: Inflation adjustment
• Arizona: New rate: $14.70. Old rate: $14.35. Reason: Inflation adjustment
• California: New rate: $16.50. Old rate: $16. Reason: Inflation adjustment
• Colorado: New rate: $14.81. Old rate: $14.42. Reason: Inflation adjustment
• Connecticut: New rate: $16.35. Old rate: $15.69. Reason: Inflation adjustment
• Delaware: New rate: $15.00. Old rate: $13.25. Reason: Legislation
• Illinois: New rate: $15.00. Old rate: $14. Reason: Legislation
• Maine: New rate: $14.65. Old rate: $14.15. Reason: Inflation adjustment
• Michigan: New rate: $10.56. Old rate: $10.33. Reason: Legislation
• Minnesota: New rate: $11.13. Old rate: $10.85. Reason: Inflation adjustment
• Missouri: New rate: $13.75. Old rate: $12.30. Reason: Ballot measure
• Montana: New rate: $10.55. Old rate: $10.30. Reason: Inflation adjustment
• Nebraska: New rate: $13.50. Old rate: $12. Reason: Ballot measure
• New Jersey: New rate: $15.49. Old rate: $15.13. Reason: Inflation adjustment
• New York: New rate: $15.50. Old rate: $15. Reason: Legislation
• Ohio: New rate: $10.70. Old rate: $10.45. Reason: Inflation adjustment
• Rhode Island: New rate: $15.00. Old rate: $14. Reason: Legislation
• South Dakota: New rate: $11.50. Old rate: $11.20. Reason: Inflation adjustment
• Vermont: New rate: $14.01. Old rate: $13.67. Reason: Inflation adjustment
• Virginia: New rate: $12.41. Old rate: $12. Reason: Inflation adjustment
• Washington: New rate: $16.66. Old rate: $16.28. Reason: Inflation adjustment

"These increases will provide more economic security for millions of workers in 2025, but there are still tens of millions of workers in states with unchanging minimum wages that are being paid exceptionally low wages," the report said.

"Even in states where increases are taking place, there is still a need to deliberately secure living wages for low-wage workers and eliminate harmful carve-outs like the tipped minimum wage."