California minimum wage in 2027

OfficialUpdated Source: The National Law Review

California’s minimum wage rises from $16.90 to $17.40 an hour on Jan 1, 2027, about $1,040 more a year for a full-time worker.

  • Minimum wage from Jan 1, 2027$17.40/hr
    Now: $16.90
  • Raise per hour+$0.50
    3.0% more
  • Full-time pay at the new rate$36,192/yr
    2,080 hours, before taxes
  • Extra pay for a full-time worker+$1,040/yr

What changes in California

  • The increase is the annual inflation adjustment required by state law, announced July 31, 2026.
  • Exempt executive, administrative and professional staff must earn at least $72,384 a year ($1,392 a week), up from $70,304.
  • Many cities and counties set higher local minimums, and fast-food and health care workers have separate, higher industry minimums. Employers must pay the highest rate that applies.
  • Many cities set higher local rates.

What the California rate means for a paycheck

Pay at exactly the state minimum, before taxes. Hours over 40 are paid at 1.5 times the rate. A higher city or county rate would apply where it exists.

California and nearby states

Statewide minimum wage on January 1, 2027
StateNowJan 1, 2027
California$16.90$17.40
Oregon$15.55$15.55
Nevada$12.00$12.00
Arizona$15.15$15.65

See every state’s 2027 minimum wage for the full list.

Common questions

What will California’s minimum wage be in 2027?

$17.40 an hour from January 1, 2027, announced by the state. It is $16.90 now.

How much is $17.40 an hour a year?

About $36,192 for a full-time worker at 2,080 hours, before taxes. That is $1,040 more than at today’s $16.90.

Does California use the federal minimum wage?

No. California’s rate is higher than the federal $7.25, so the state rate applies to most jobs. If a city or county sets a higher rate, that one applies.

When do employers have to start paying the new rate?

For hours worked on or after January 1, 2027, even if payday falls later in January.

Sources

  1. California announces state minimum wage increase to come in 2027, The National Law Review, Aug 11, 2026
  2. Minimum wage by state 2027, StartBusinessByState.com, Oct 16, 2026
  3. State minimum wage laws, U.S. Department of Labor

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