The real value of the minimum wage in 2026
The federal $7.25 minimum took effect on 2009-07-24. Measured in 2026 dollars using BLS CPI-W, that 2009 dollar of purchasing power is now worth roughly $10.94, while the statutory rate has stayed flat at $7.25.[BLS CPI][EPI Tracker]
Federal floor, real value over time
| Year | Nominal | In 2026 dollars | Erosion vs 2009 |
|---|---|---|---|
| 2009 | $7.25 | $10.94 | baseline |
| 2014 | $7.25 | $9.83 | -$2.58 |
| 2019 | $7.25 | $9.23 | -$1.98 |
| 2022 | $7.25 | $8.15 | -$0.90 |
| 2025 | $7.25 | $7.38 | -$0.13 |
| 2026 | $7.25 | $7.25 | -$0.00 |
Indexed-state real wage today
The 19 states that index annually keep purchasing power close to constant. Among them, the highest 2026 real wage is DC District of Columbia at $17.95.
| State | 2026 rate | Indexing law |
|---|---|---|
| DC District of Columbia | $17.95 | CPI-U Washington-Arlington-Alexandria indexed (projection) |
| WA Washington | $16.66 | CPI-W US-City Average indexed under RCW 49.46.020 (projection) |
| CA California | $16.50 | CPI-W indexed under Lab. Code 1182.12(c) (projection) |
| NY New York | $16.50 | CPI-W US-City Average indexed under Lab. L. 652 (projection) |
| CT Connecticut | $16.35 | ECI indexed under Public Act 19-4 (projection) |
| NJ New Jersey | $15.49 | CPI-W indexed under P.L. 2019 c. 32 (projection) |
| OR Oregon | $15.05 | CPI-U US-City Average indexed under ORS 653.025 (projection) |
| CO Colorado | $14.81 | CPI-U Denver-Aurora-Lakewood indexed (projection) |
| AZ Arizona | $14.70 | CPI-U Aug-Aug rounded to nearest five cents (projection) |
| ME Maine | $14.65 | CPI-U Northeast indexed (projection) |
| VT Vermont | $14.01 | 5 V.S.A. 384(a) CPI-U formula (projection) |
| FL Florida | $14.00 | Final $1 step under Amendment 2 (2020) |
| MO Missouri | $13.75 | Proposition A (2024) final $1.25 step |
| NE Nebraska | $13.50 | CPI-U indexed under Initiative 433 (projection) |
| MI Michigan | $12.48 | Improved Workforce Opportunity Wage Act schedule |
| SD South Dakota | $11.50 | CPI-U US-City Average indexed under SDCL 60-11-3 (projection) |
| MN Minnesota | $11.13 | CPI-U US indexed under Minn. Stat. 177.24 |
| MT Montana | $10.85 | CPI-U US August reading (projection) |
| OH Ohio | $10.70 | CPI-U US-City Average indexed (projection) |
Real-wage erosion in federal-floor states
The 20 states pinned to the FLSA $7.25 floor have lost purchasing power at the same pace as the federal rate: from $10.94 in 2026 dollars at passage to $7.25 today. That is a real cut of roughly $3.69 per hour over 17 years.
Method note
Real wages use the annual average CPI-W (CWUR0000SA0) from BLS, with 2025 set to the latest annual and 2026 set to the May 2026 release as a partial-year reference. Other deflators (CPI-U, PCE) tell a similar but not identical story; CPI-W is used because most indexed state minimum-wage laws cite it.[BLS CPI series]