Alaska Minimum Wage 2026
The minimum wage in Alaska is $14.00 per hour in 2026, effective July 1, 2026. Alaska does not allow a tip credit, so tipped employees earn the full minimum wage plus tips.
What is the minimum wage in Alaska in 2026?
The Alaska minimum wage is $14.00 per hour as of July 1, 2026. Alaska is unusual in that its increases take effect in the middle of the year rather than on January 1, a rhythm set by Ballot Measure 1, which voters approved in 2024.
Ballot Measure 1 laid out three steps: $13.00 in July 2025, $14.00 in July 2026, and $15.00 in July 2027, followed by annual inflation adjustments. For employers, the mid-year timing means payroll changes land in the middle of the fiscal planning cycle, so budget for the July jump rather than a new-year one.
Tipped minimum wage in Alaska
Alaska does not allow a tip credit. Servers, bartenders, and every other tipped employee must receive the full $14.00 per hour in cash wages, and tips are earned entirely on top of that.
This has been Alaska's rule for decades, so there is no separate tipped wage to track and no shortfall math to run each pay period. The compliance burden shifts instead to tip pooling arrangements, which must follow federal rules on who can participate.
Alaska minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $10.19 | $10.19 |
| 2021 | $10.34 | $10.34 |
| 2022 | $10.34 | $10.34 |
| 2023 | $10.85 | $10.85 |
| 2024 | $11.73 | $11.73 |
| 2025 | $13.00 | $13.00 |
| 2026 | $14.00 | $14.00 |
Alaska's minimum wage changes on July 1, not January 1. Rates shown are the rate in effect at the end of each year.
Upcoming minimum wage increases in Alaska
One more fixed step remains: the Alaska minimum wage rises to $15.00 on July 1, 2027, completing the Ballot Measure 1 schedule. After that, the rate adjusts each year for inflation based on the Consumer Price Index for urban Alaska.
Because the adjustment date stays on July 1, Alaska employers should review pay rates every summer, not every January. Announcements of the following year's indexed rate come from the Alaska Department of Labor and Workforce Development.
Minimum wage by city in Alaska
Alaska has no city or borough minimum wages. Anchorage, Fairbanks, Juneau, and every other community follow the statewide $14.00 rate.
Actual pay often runs well above the floor because Alaska's cost of living is among the highest in the country, especially for groceries and housing in remote communities. Seasonal industries such as fishing and tourism also bid wages up sharply in summer.
State rate applies
State rate applies
State rate applies
State rate applies
What Alaska employers need to know
No tip credit
Pay tipped employees the full $14.00 per hour in wages. Tips belong to the employee on top of the minimum and can never offset any part of it.
Daily overtime
Alaska requires overtime at 1.5x the regular rate after 8 hours in a workday for most employers, in addition to the standard 40-hour weekly threshold. Small employers with fewer than 4 employees have limited exemptions.
July 1 rate changes
Update payroll systems each July, not each January. The next step is $15.00 on July 1, 2027, followed by annual CPI adjustments on the same date.
Posting and records
Display the current Alaska wage and hour poster and keep payroll records showing hours worked and wages paid. Ballot Measure 1 also added paid sick leave requirements that took effect alongside the wage increases.
How other states compare
See how Alaska's $14.00 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Alaska labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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