Minnesota minimum wage in 2026 (and 2027)

By the HRPricing editorial teamReviewed October 18, 2026How we research and score

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Minnesota's minimum wage is $11.41 an hour for all employers as of January 1, 2026, set by state law and adjusted for inflation each year by the Minnesota Department of Labor and Industry (DLI). It rises to $11.87 on January 1, 2027, and Minneapolis and Saint Paul set higher city rates of $16.37 for most employers. Counting payroll taxes and the new Paid Leave premium, one full-time hire at $11.41 runs $26,097.29 a year at the lowest new-employer unemployment rate.

2026 minimum wage
$11.41an hour
Tipped cash wage
$11.41an hour
2027
$11.87as of October 2026
Federal floor
$7.25an hour
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On this page
  1. One state rate, a training rate and no tip credit
  2. City and county minimum wages in Minnesota
  3. What Minnesota rates add up to in a year
  4. Five years of inflation adjustments
  5. Taxes and premiums on top of $11.41
  6. Payroll setup for Minnesota and Twin Cities staff

One state rate, a training rate and no tip credit

Minnesota now uses a single rate for every employer, large or small: $11.41 an hour. The one lower state rate is the 90-day training wage for workers under 20, which is $9.31 in 2026 and $9.68 from January 1, 2027 (DLI).

Tipped workers get no break. DLI states that no employer may take a tip credit against minimum wages in Minnesota, so servers and bartenders get at least $11.41 in wages plus every dollar of tips. Payroll set to a $2.13 tipped default would underpay by $9.28 an hour.

Minnesota's own overtime threshold is 48 hours, per DOL's summary of state law. Employers covered by the federal Fair Labor Standards Act still owe time and a half after 40 hours, and most employers are covered, so plan on 40.

Minneapolis and Saint Paul

Minneapolis pays $16.37 an hour from January 1, 2026 regardless of employer size, rising to $17.02 on January 1, 2027. Saint Paul pays $16.37 for employers above 100 employees from January 1, 2026 and for small employers (6 to 100) from July 1, 2026; micro employers of 5 or fewer pay $14.25 from July 1, 2026 and $15.00 from July 1, 2027, and youth aged 14 to 17 get $13.95. Saint Paul's 2027 rates for its larger tiers were shown only in an image chart, so check the city page. The city rate applies to hours worked inside city limits.

City and county minimum wages in Minnesota

Local and regional minimum wages in Minnesota
Where2026 rateEffectiveTippedNext changeSource
Minneapolis$16.372026-01-01$16.37$17.02 2027-01-01source
Saint Paul$16.372026-01-01$16.37source

Checked October 2026 on each city or county labor office page. An employer pays the highest rate that applies where the work is done.

What Minnesota rates add up to in a year

Full-time annual pay at Minnesota minimum wages (2,080 hours)
RateHourlyAnnual
State, 2026$11.41$23,732.80
State, 2027$11.87$24,689.60
Training wage (under 20, 90 days), 2026$9.31$19,364.80
Minneapolis, 2026$16.37$34,049.60
Minneapolis, 2027$17.02$35,401.60

Sources: Minnesota DLI and the City of Minneapolis minimum wage pages, checked Oct 18, 2026. Annual = hourly x 2,080.

The state rate works out to $456.40 a week and $1,977.73 a month ($23,732.80 / 12). The 2027 increase of $0.46 an hour adds $956.80 to a full-time year.

Five years of inflation adjustments

Minnesota's large-employer rate in the DOL history tables went $10.00, $10.08, $10.33, $10.59 and $10.85 across 2020 to 2024. Since then it has gained 56 cents to reach $11.41, and the $11.87 step for 2027 is locked in. DLI describes each increase as an inflation adjustment.

Taxes and premiums on top of $11.41

Minnesota's unemployment wage base is $44,000, so a full-time minimum wage worker's entire pay is taxable. New employers get their industry's average rate, with a 1% minimum, plus a 0.40% base rate and a 14% additional assessment on the tax due; the 51 industry rates run from 1% to 8.9% in 2026 (Bloomberg Tax, a secondary source). Minnesota Paid Leave started January 1, 2026 with a 0.88% premium, and you may deduct up to half from the employee.

Minnesota employer cost, one full-time worker at $11.41, 2026 (lowest SUTA rate)
ItemMathAnnual
Wages2,080 x $11.41$23,732.80
Employer FICA7.65% x $23,732.80$1,815.56
FUTA0.6% x $7,000$42.00
SUTA, 1% industry rate plus 0.40% base1.40% x $23,732.80$332.26
Additional assessment14% x $332.26$46.52
Workforce Development Fund0.10% x $23,732.80$23.73
Paid Leave, employer half0.44% x $23,732.80$104.42
Total$26,097.29

Source: Minnesota SUTA, assessments and Paid Leave rates from states.csv, checked Oct 16, 2026. We add the 0.40% base rate on top of the industry rate because states.csv shows Minnesota's rate range as experience rate plus 0.40% (0.40% to 9.30%); your DEED rate notice is the final word. The 1% to 8.9% industry range is from Bloomberg Tax (secondary). At the 8.9% top industry rate plus the base, SUTA is $2,207.15 before the assessment.

Small employers (30 or fewer employees with average wages up to 150% of the state average) get the employer share of the Paid Leave premium cut in half. For setup details, see Minnesota payroll taxes; for any wage, use the employee cost calculator.

Payroll setup for Minnesota and Twin Cities staff

Your system needs a work-location field for Minneapolis and Saint Paul hours, the January 1 rate change and the Paid Leave deduction. For a rough software budget, Gusto Simple lists $49 monthly and $6 per employee (October 16, 2026); see alternatives in our payroll software rankings. Neighbors for comparison: Wisconsin and North Dakota stay at $7.25, Iowa too, and South Dakota pays $11.85. Every state is in the 2026 minimum wage table.

See Gusto payroll pricing on Gusto’s site

Frequently asked questions

What is the Minnesota minimum wage in 2026?
Minnesota employers of every size must pay at least $11.41 an hour from January 1, 2026, the Minnesota Department of Labor and Industry says. Workers under 20 may get a $9.31 training wage for 90 days.
What is the Minnesota minimum wage in 2027?
It becomes $11.87 an hour on January 1, 2027 for all Minnesota employers after the annual inflation adjustment, with the under-20 training wage moving to $9.68, per the Department of Labor and Industry.
Can Minnesota employers pay tipped workers less?
They cannot. Minnesota bans tip credits outright, so a server earns at least $11.41 an hour from the employer in 2026 and keeps tips on top, according to the Department of Labor and Industry.
What is the minimum wage in Minneapolis and Saint Paul?
Both cities require $16.37 in 2026 for most employers. Minneapolis applies it at every size and moves to $17.02 on January 1, 2027. Saint Paul applies it above 5 employees (small firms since July 1, 2026) and sets $14.25 for micro employers.
How much is $11.41 an hour per year?
A 2,080-hour year at $11.41 grosses $23,732.80, close to $1,977.73 a month. Adding FICA, FUTA, unemployment tax at the lowest new-employer rate (1.40% plus the 14% assessment), the 0.10% workforce fund and half the Paid Leave premium brings the employer total to $26,097.29.
Sources (6)
  1. U.S. Department of Labor, Wage and Hour Division: State minimum wage laws (updated July 1, 2026) (checked Oct 18, 2026)
  2. U.S. Department of Labor, Wage and Hour Division: Changes in basic minimum wages in non-farm employment under state law, 1968 to 2024 (revised January 2025) (checked Oct 18, 2026)
  3. Gusto: Gusto pricing page (checked Oct 16, 2026)
  4. dli.mn.gov/business/employment-practices/minimum-wage-minnesota (checked October 16, 2026)
  5. minimumwage.minneapolismn.gov (checked October 2026)
  6. stpaul.gov/departments/human-rights-equal-economic-opportunity/labo... (checked October 2026)

This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.