San Francisco minimum wage in 2026

San Francisco minimum wage: what we could confirm

2026 rate

Not confirmedOLSE notice not readable Oct 18, 2026

Tipped workers

Full rateno tip credit in California

Effective date

Not confirmedJuly 1 per secondary sources

California floor

$16.90$17.40 from Jan 1, 2027

Size tiers for the 2026 rate could not be checked either, since the OLSE notice was the page we could not read.

Who must be paid the San Francisco rate

The ordinance applies to work performed within the City and County of San Francisco, which share one boundary. A worker based in Oakland who spends Tuesdays at a client's SoMa office earns the city rate for those hours; a San Francisco company's employee who works from Daly City is paid under that city's rules or the state's. Keep hours by location for anyone who crosses the city line, and pay at least the higher rate for each hour.

The state rules on overtime and paid sick leave still apply on top of the city rate. The California minimum wage page covers the state rate and other state pay rules.

Tips do not reduce the wage

Tips sit on top of the wage in San Francisco, never inside it. State law bars a tip credit, which means the city has no tipped rate to publish: bartenders, baristas and servers draw the same hourly minimum as a cashier. Employers coming from Chicago, where news reports say the tip credit is being phased out, or from states that still use the $2.13 cash wage under federal law, should price front-of-house labor at the full city rate. Los Angeles and Seattle work the same way.

San Francisco next to the state and other cities

San Francisco is one of dozens of California cities with a local minimum, and Bay Area rates differ from one city line to the next. The state rate rises to $17.40 on January 1, 2027, which narrows the gap with local rates that do not change on that date. Los Angeles pays $18.42 from July 1, 2026, and unincorporated Los Angeles County pays $18.47. For the national ranking, see the 2026 minimum wage by state.

What an SF worker costs beyond the wage

Most of the employer tax bill on a California worker is capped at the first $7,000 of pay, so only FICA grows with the city rate. Per full-time worker (2,080 hours) for a new employer:

So the fixed part is $287.00 a worker, and FICA adds $159.12 for every dollar of hourly pay. If California ends up on the 2026 FUTA credit reduction list (published after November 10, 2026), add $105.00 a worker. The 1.3% state disability deduction comes from the employee.

San Francisco withholds no city income tax, but the business itself may owe the city's gross receipts tax and payroll expense tax. We could not verify their 2026 rates or exemptions, so they are not in these figures; the San Francisco business tax guide tracks what is known. EDD registration steps are in the California payroll tax guide.

Payroll for San Francisco employers

Two dates matter each year: January 1 for the state rate, and the city's own adjustment date, which secondary sources put at July 1. A payroll system that records where each shift happened keeps San Francisco hours at the city rate and the rest at the state rate. Gusto's entry plan is $49 a month and $6 for each person paid (checked October 16, 2026). Our payroll software rankings list the alternatives, and payroll pricing by team size shows real bills.

Once you have the OLSE figure, enter it in the employee cost calculator for an all-in number.