These 27 States Are Raising Their Minimum Wage in 2023

Is yours on the list?

It's an unfortunate thing that many minimum wage workers struggle to keep up with their living costs and end up racking up debt on credit cards just to stay afloat. Given that the federal minimum wage is just $7.25, it's easy to see why.

Now the good news is that many states have their own minimum wage requirements, and employers in some states have to pay well more than $7.25 an hour. Not only that, but a number of states are raising their minimum wage in 2023. Here's what that list looks like.

States that raised their minimum wage on or by Jan. 1

In a number of U.S. states, a higher minimum wage is already in effect thanks to rules that changed at the very start of 2023. Here's a list of states that now have a higher hourly minimum wage:

• Delaware went from $10.50 an hour to $11.75
• Illinois went from $12 an hour to $13
• Maryland went from $12.50 an hour to $13.25
• Massachusetts went from $14.25 an hour to $15
• Michigan went from $9.87 an hour to $10.10
• Missouri went from $11.15 an hour to $12
• Nebraska went from $9 an hour to $10.50
• New Jersey went from $13 an hour to $14.13
• New Mexico went from $11.50 an hour to $12
• New York went from $13.20 an hour to $14.20 in Upstate New York, and $15 an hour in and around New York City
• Rhode Island went from $12.25 an hour to $13
• Virginia went from $11 an hour to $12

States whose minimum wage get a cost-of-living increase in 2023

Many people are familiar with cost-of-living increases in the context of Social Security benefits. While the above states raised their minimum wages to account for different factors, including local living costs, some states are raising their hourly minimum wage this year to simply adjust for higher inflation. Here are the states that are going that route:

• Alaska's minimum wage is rising from $10.34 to $10.85
• Arizona's minimum wage is rising from $12.80 to $13.85
• California's minimum wage is rising from $14.50 to $15 for companies with 25 or fewer employees, and $15.50 for companies with 26 employees or more
• Colorado's minimum wage is rising from $12.56 to $13.65
• Maine's minimum wage is rising from $12.75 to $13.80
• Minnesota's minimum wage is rising from $8.42 to $8.63 for small employers, and $10.33 to $10.59 for large employers
• Montana's minimum wage is rising from $9.20 to $9.95
• Ohio's minimum wage is rising from $9.30 to $10.10
• South Dakota's minimum wage is rising from $9.95 to $10.80
• Vermont's minimum wage is rising from $12.55 to $13.18
• Washington's minimum wage is rising from $14.49 to $15.74

More changes are arriving later in the year

There are some states that plan to raise their hourly minimum wage later in 2023:

• Connecticut's minimum wage will rise from $14 to $15 effective July 1
• Florida's minimum wage will rise from $11 to $12 in September
• Nevada's minimum wage will rise from $9.50 to $10.25 effective July 1 among companies that offer benefits, and from $10.50 to $11.25 at companies that don't offer benefits
• Oregon's minimum wage will rise from $13.50 effective July 1, but the extent of that increase will be determined later on in the year based on data from the Consumer Price Index, which measures changes in the cost of consumer goods

How to get by on a minimum wage income

Even if your earnings are increasing this year, if you only make the minimum wage in your state, you may be struggling financially. And so a good bet in that case is to do what you can to minimize your spending.

That could mean moving in with your parents or another family member or friend for a period of time. That way, you can slash your expenses substantially and build your savings account balance so you have a cushion to fall back on.

You can also try getting a job that at least offers some benefits, like subsidized health insurance. The benefits you get could offset your lower wages to at least some degree.

Finally, it pays to do what you can to boost your skills so you're eventually able to move out of a minimum wage job. If you work for a larger company, see if there are mentorship or training programs you can take advantage of. And if a lack of a college education is holding you back, see if your employer offers any type of tuition assistance.

It's good to see that many states are raising their minimum wage this year. But that doesn't mean those who earn it won't continue to experience financial hardships.