These 20 U.S. States Pay a Minimum Wage of $10 or More

by Natasha Gabrielle | Published on Sept. 25, 2021

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Some states have minimum wage rates well above the federal minimum wage rate of $7.25.

In the United States, the current federal minimum wage is $7.25 per hour, and has been since July 24, 2009. States can follow this rate or outline their own hourly rate. Several only pay the federal minimum wage, but some states have higher hourly minimum wage rates.

Are you wondering which states pay their workers better? Keep reading to find out more.

These states pay most workers $10 or more per hour

Currently, 20 states and the District of Columbia pay their workers rates that are above $10 per hour. Check out the list below.

State Hourly minimum wage
Alaska $10.34
Arizona $12.15
Arkansas $11.00
California $13.00 to $14.00 (employers with 25 employees or fewer: $13.00; employers with 26+ employees: $14.00)
Colorado $12.32
Connecticut $13.00
Hawaii $10.10
Illinois $11.00 (valid for employers with 4+ employees, including family members)
Maine $12.15
Maryland $11.75
Massachusetts $13.50
Minnesota $10.08 (valid for employers with annual revenues of $500,000 or more)
Missouri $10.30 (valid for employers of businesses whose annual gross income is $500,000+ and employers of some businesses whose annual gross income is less than $500,000, excludes retail and service businesses)
New Jersey $12.00
New Mexico $10.50
New York $12.50 to $15.00 (Long Island & Westchester: $14.00; NYC: $15.00; elsewhere: $12.50)
Oregon $12.75
Rhode Island $11.50
Vermont $11.75
Washington $13.69
Washington, D.C. $15.20
Source: U.S. Department of Labor

A higher minimum wage can make a difference for workers

Some states have increased their minimum wage to account for inflation and to pay workers more. While some areas have a higher cost of living, you can see how it would be beneficial to work in a state with a higher minimum wage.

Let's do the math (before taxes) to see the difference:

A Pennsylvania worker making $7.25 per hour would make $290 per 40-hour week, which is $1,160 per four-week month or $15,080 per 52-week year.

A Rhode Island worker making $11.50 per hour would make $460 per 40-hour week, which is $1,850 per four-week month or $23,920 per 52-week year.

That's an extra $690 in income each month or $8,840 each year, which is a noticeable difference.

If you experience a pay increase, don't neglect savings goals

If you're making more money due to a raise at your job or if you're a minimum wage worker in a state where the minimum wage has recently increased, don't forget about your savings. Having extra money set aside in an emergency fund can be beneficial in case you go through a difficult financial situation.

If you're new to saving, this emergency fund calculator can help you figure out how much you should try to set aside. If you don't have a lot of extra income, start with a small savings goal. Setting aside even a small amount of money regularly can make saving more manageable. And opening an additional savings account and keeping your emergency fund separate from your regular account can make it easier to save money.

Are you looking for ways to improve your money management choices? These personal finance resources can help improve your money moves.

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