Virginia minimum wage in 2026 (and 2027)

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Virginia's minimum wage is $12.77 an hour in 2026, set by Section 40.1-28.10 of the Code of Virginia. The same section raises it to $13.75 on January 1, 2027 and $15.00 on January 1, 2028, with annual inflation adjustments from 2029.

On a full-time schedule that is $26,561.60 a year. A new employer's payroll taxes add $2,277.96, plus smaller state charges we could not price.

2026 minimum wage
$12.77an hour
Tipped cash wage
$2.13an hour
2027
$13.75as of October 2026
Federal floor
$7.25an hour
On this page

Virginia's path to $15.00

Virginia now has a fixed schedule written into law:

  • 2026: $12.77 an hour.
  • January 1, 2027: $13.75, a rise of $0.98.
  • January 1, 2028: $15.00, a rise of $1.25.
  • From 2029: adjusted each year for inflation.

For one full-time worker at the minimum, the two steps add $2,038.40 and then $2,600.00 in yearly wages. Plan pricing and schedules with the 2028 figure in mind, not this year's.

Tipped employees can be paid a $2.13 cash wage, as under federal law, with tips making up the rest of the state minimum. Because the gap between $2.13 and $12.77 is wide, the tip shortfall you owe in a slow week can be large. Check it every pay period.

Weekly, monthly and yearly pay in Virginia

A full-time year (2,080 hours) pays:

  • $12.77 (2026): $510.80 a week, $2,213.47 a month, $26,561.60 a year.
  • $13.75 (2027): $28,600.00 a year.
  • $15.00 (2028): $31,200.00 a year.

Federal FLSA overtime applies after 40 hours in a workweek at time and a half, so each extra hour at $12.77 costs $19.16 ($12.77 x 1.5 = $19.155).

Employer taxes on a $12.77 Virginia worker

First-year employer cost of one full-time Virginia worker at $12.77
ItemAmountHow it is worked out
Gross wages$26,561.60$12.77 x 2,080 hours
FICA (7.65%)$2,031.966.2% Social Security plus 1.45% Medicare
FUTA (0.6% net)$42.000.6% of the first $7,000
VEC base rate (2.5% new employer)$200.002.5% of the first $8,000
VEC administrative fee (0.05%)$4.000.05% of the first $8,000
Employer taxes on top of wages$2,277.968.58% of wages
All-in cost for the year$28,839.56before the pool cost charge

Sources: Virginia Employment Commission (2.5% new-employer base rate, 0.05% administrative fee under Appropriation Act Item 359), $8,000 wage base per U.S. DOL, FICA and FUTA from IRS guidance. Checked Oct 16, 2026.

Virginia's new-employer rate is a base rate plus add-ons. A pool cost charge applies to all employers, and a 0.2% fund building charge applies only when the state trust fund is at or below 50%, the trigger our research recorded. Our research did not confirm the 2026 value of either, so the total here is a floor. Your VEC rate notice will show the full figure. Registration steps are in the Virginia payroll tax guide.

Workers comp becomes mandatory once you regularly employ more than two people in Virginia, and contractors must count their subcontractors' workers toward that number. Coverage is bought from private insurers. A three-person shop at the minimum wage crosses the line, so price the policy before the third hire, not after.

Paying Virginia employees through the increases

The rate changes in January 2027, again in January 2028, and by inflation from 2029, so each January brings a chance to miss one. Payroll software with dated rate changes keeps hourly staff at the right minimum. Gusto, for example, charges $49 a month and $6 per person on its Simple plan (checked October 16, 2026). See where it lands in the payroll software rankings and see what payroll services cost.

Run the 2027 and 2028 numbers in the employee cost calculator. Nearby, Maryland is $15.00 and North Carolina is $7.25.

Frequently asked questions

What is the Virginia minimum wage in 2026?
$12.77 an hour, set by Code of Virginia Section 40.1-28.10. Tipped employees may be paid a $2.13 cash wage if tips bring them to the full rate.
What will the Virginia minimum wage be in 2027?
$13.75 an hour from January 1, 2027, rising to $15.00 on January 1, 2028, with annual inflation adjustments from 2029 (Code of Virginia Section 40.1-28.10).
What can Virginia restaurants pay servers?
$2.13 an hour in cash. Tips must bring total pay to the $12.77 state minimum in 2026, and the employer pays any shortfall (U.S. Department of Labor tipped wage table).
What does a $12.77 employee cost a Virginia employer?
A full-time worker earns $26,561.60 a year. A new employer adds $2,277.96 for FICA, FUTA, the 2.5% VEC base rate and the 0.05% administrative fee on $8,000, plus a pool cost charge whose 2026 value was not confirmed.
Sources (5)
  1. Code of Virginia: Section 40.1-28.10, minimum wage (checked Oct 16, 2026)
  2. Virginia Employment Commission: Unemployment tax rates (checked Oct 16, 2026)
  3. U.S. Department of Labor, Wage and Hour Division: Minimum wages for tipped employees (checked Oct 16, 2026)
  4. IRS: Instructions for Form 940 (FUTA) (checked Oct 16, 2026)
  5. Gusto: Gusto pricing page (checked Oct 16, 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.