Minnesota Minimum Wage 2026
The minimum wage in Minnesota is $11.41 per hour in 2026, effective January 1, 2026. Minnesota does not allow a tip credit, so tipped employees earn the full minimum wage plus tips.
What is the minimum wage in Minnesota in 2026?
The Minnesota minimum wage is $11.41 per hour as of January 1, 2026, up from $11.13 through the state's annual inflation adjustment. Since January 2024, one rate covers employers of every size: the old lower tier for small employers was eliminated, simplifying compliance for businesses that used to straddle the revenue threshold.
The statewide number understates what Twin Cities employers actually pay. Minneapolis and St. Paul both set their own minimums well above the state rate, so an employer with locations on both sides of the metro and in greater Minnesota can face three different wage floors at once.
Tipped minimum wage in Minnesota
Minnesota does not allow a tip credit. Servers, bartenders, and delivery drivers must receive the full $11.41 per hour in cash wages (or the higher city minimum in Minneapolis and St. Paul), with tips earned entirely on top.
Minnesota law also protects tips aggressively: tips belong to the employee who received them, mandatory tip pooling cannot be imposed by the employer, and tips cannot be counted toward any wage obligation. Restaurant groups entering from tip-credit states should rebuild their labor models before posting Minnesota roles.
Minnesota minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $10.00 | $10.00 |
| 2021 | $10.08 | $10.08 |
| 2022 | $10.33 | $10.33 |
| 2023 | $10.59 | $10.59 |
| 2024 | $10.85 | $10.85 |
| 2025 | $11.13 | $11.13 |
| 2026 | $11.41 | $11.41 |
Rates shown are the large-employer track. The lower small-employer rate was eliminated in January 2024.
Upcoming minimum wage increases in Minnesota
Minnesota indexes its minimum wage to inflation every January 1, with the Department of Labor and Industry announcing the new rate each fall. Since 2024, the annual adjustment is capped and applies identically to all employer sizes.
Minneapolis and St. Paul adjust their city minimums on their own schedules, and both already sit several dollars above the state rate. Proposals to raise the state minimum toward the city levels appear regularly at the legislature, so watch each session if you budget multi-year.
Minimum wage by city in Minnesota
Minnesota allows local minimum wages, and both core Twin Cities use them. Minneapolis's citywide minimum is above $15.50 and adjusts annually, while St. Paul phases rates in by employer size, with larger employers already at or near the Minneapolis level. Confirm both cities' current figures before setting pay.
Outside the two cities, the $11.41 state rate applies, including in Rochester and Duluth. The gap of more than four dollars between the state floor and the Minneapolis floor is one of the widest state-to-city spreads in the country, so location mapping matters more in Minnesota than in most states.
City minimum above $15.50, adjusting annually; confirm the current figure
City minimum phased by employer size; confirm the current figure for your tier
State rate applies
State rate applies
What Minnesota employers need to know
No tip credit
Pay tipped employees the full applicable minimum wage in cash. Tips belong to the employee, employer-mandated tip pooling is prohibited, and tips never offset wage obligations.
City minimums in the Twin Cities
Employees who work inside Minneapolis or St. Paul city limits are owed the city minimum for those hours, even for delivery or occasional work. Track hours by location if staff cross city boundaries.
One statewide rate
Since January 2024 the small-employer tier is gone; every employer pays at least $11.41 regardless of revenue. Youth and training wages remain available in narrow cases at lower rates.
Overtime
Minnesota's state overtime threshold is 48 hours per workweek, but most employers are covered by the federal FLSA and owe overtime after 40. Apply whichever standard covers the employee.
How other states compare
See how Minnesota's $11.41 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 Minnesota labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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