Minimum wage in Minnesota, 2020–2027
- Minimum wage in 2026
$11.41 an hour1
In force since Jan 1, 2026.
- On January 1, 2027
$11.87 an hour1
Up $0.46 from today.
- Tipped employees
$11.41 an hour in cash2
Tipped employees get the full minimum wage before tips.
- Overtime
Premium pay after 48 hours a week3
- Overtime under federal law
Time and a half after 40 hours a week (federal FLSA)4
For covered employees who are not exempt.
- Minneapolis minimum wage
$16.37 an hour5
Per City of Minneapolis, Labor Standards Enforcement: “The required minimum wage rate for work performed in Minneapolis during 2026 is $16.37. In 2027, the Minneapolis minimum wage is $17.02.”
- Minneapolis from Jan 1, 2027
$17.02 an hour5
Per City of Minneapolis, Labor Standards Enforcement: “The required minimum wage rate for work performed in Minneapolis during 2026 is $16.37. In 2027, the Minneapolis minimum wage is $17.02.”
- Saint Paul minimum wage
$16.37 an hour6
Businesses with 6 or more employees; $14.25 with 5 or fewer, per City of Saint Paul, Labor Standards Enforcement and Education.
- Saint Paul from Jan 1, 2027
$17.02 an hour7
Businesses with 101 or more employees from January 1, 2027, and 6 or more from July 1, 2027, per City of Saint Paul, Labor Standards Enforcement and Education.
The Minnesota minimum wage rose from $10 in 2020 to $11.41 in 2026; $11.87 from Jan 1, 2027
Line chart of the Minnesota minimum wage against the federal minimum: $10 in 2020, $11.41 in 2026, and $11.87 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Minnesota
At $11.41 an hour for 40 hours a week, a new employer with 10 staff pays $23,733 in wages and $2,444 on top (10.3%) in payroll taxes and workers' comp. At the 2027 rate of $11.87 with 2026 payroll tax rates: $27,230 a year. Minnesota publishes a new-employer unemployment rate per industry; this uses its rate for wholesale trade (choose yours in the calculator).
- Wages (2,080 paid hours a year)
- $23,733
- Social Security (employer share)6.2%9 of $23,733
- $1,471
- Medicare (employer share)1.45%10 of $23,733
- $344
- State unemployment insurance (new employer)1% (new-employer rate for wholesale trade)12 of $23,73313
- $237
- Minnesota Paid Leave (employer's minimum share)0.22%14 (25% of the premium rate for a small employer)15 of $23,733
- $52
- Workers' compensation (benchmark index rate)$1.25 per $100 of payroll16
- $297
- Total a year
- $26,177
If you also offer single health coverage, the average employer here pays about $6,647 more a year: a $8,586 average premium17 less $1,939 paid by the employee17.
Frequently asked questions
What is the minimum wage in Minnesota in 2026?
$11.41 an hour since Jan 1, 2026: $23,733 a year at full time.
What will the minimum wage be in Minnesota in 2027?
$11.87 an hour from Jan 1, 2027, after $11.41 an hour in 2026: $24,690 for a full-time year.
What is the minimum wage for tipped employees in Minnesota?
$11.41 an hour before tips: Minnesota allows no tip credit.
How much does a minimum-wage employee cost an employer in Minnesota?
About $26,177 a year full time at $11.41: $23,733 of pay plus $2,444 on top, $2,147 in payroll taxes and $297 in workers' comp, before any health coverage.
How has the Minnesota minimum wage changed since 2000?
The Minnesota minimum wage rose from $10 in 2020 to $11.41 in 2026; $11.87 from Jan 1, 2027.
When do Minnesota employers have to pay overtime?
The U.S. DOL lists Minnesota's premium pay as «Weekly - 48», at one and one-half times the regular rate unless otherwise specified. Employers covered by the federal FLSA owe it after 40 hours a week.
More minimum wage and employer cost pages
Employer costs in Minnesota
States with a similar minimum wage
Data and rules for every state
Sources
The 17 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- Minnesota Department of Labor and Industry dli.mn.gov/business/employment-practices/minimum-wage-minnesota“Amount as of Jan. 1, 2026 Amount as of Jan. 1, 2027 State minimum wage $11.41 an hour $11.87 an hour” “Effective Jan. 1, 2027 , Minnesota’s minimum-wage rate will be adjusted for inflation to $11.87 an hour for all employers in the state.”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees full state minimum wage before tips … Minnesota $11.41”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Minnesota … Basic Minimum Rate (per hour): $11.41 … Premium Pay After Designated Hours 1 : Weekly - 48 … The overtime premium rate is one and one-half times the employee's regular rate, unless otherwise specified.”
- U.S. Department of Labor, Wage and Hour Division Overtime Pay - US Department of Labor“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”
- City of Minneapolis, Labor Standards Enforcement minimumwage.minneapolismn.gov“The required minimum wage rate for work performed in Minneapolis during 2026 is $16.37. In 2027, the Minneapolis minimum wage is $17.02.”
- City of Saint Paul, Labor Standards Enforcement and Education stpaul.gov/news/saint-paul-businesses-notified-2026-minimum-wage-increases“Effective January 1, 2026, the City’s minimum wage hourly rate will be: $16.37 for macro and large businesses (101+ employees) Effective July 1, 2026, the minimum wage hourly rate will be: $16.37 for small businesses (6-100 employees) $14.25 for micro businesses (5 employees or less)”
- City of Saint Paul, Labor Standards Enforcement and Education stpaul.gov/news/announcing-city-saint-paul-minimum-wage-rates-2027“Effective January 1, 2027, the minimum wage hourly rate will be: $17.02 for large and macro businesses (101+ employees) $16.37 for small businesses (6–100 employees) $14.25 for micro businesses (5 employees or fewer) Effective July 1, 2027, the minimum wage hourly rates will be: $17.02 for large and macro businesses (101+ employees) $17.02 for small businesses (6–100 employees) $15.00 for micro businesses (5 employees or fewer)”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Minnesota .70 - 1.15(b) .70 - 1.15(b) .75 - 1.60 1.80 2.30 2.90 3.10 … Minnesota 3.55 & 3.50(f) 4.25(g) 4.25(g) 4.25(g) 4.25(g) 4.25(g) 5.15(g) … Minnesota 4.90 - 5.15(g) 4.90 - 5.15(g) 4.90 - 5.15(g) 4.90 - 5.15(g) 4.90 - 5.15(g) 4.90 - 5.15(g) 5.25 - 6.15(g) … Minnesota 5.25-6.15(g) 5.25-6.15(g) 5.25-6.15(g) 5.25-6.15(g) 5.25-6.15(g) 5.25-6.15(g) 5.25-6.15(g) … Minnesota 6.50-8.00(g) 7.25-9.00(g) 7.25-9.50(g) 7.75-9.50(g) 8.04-9.86(g) 8.15-10.00(g) … Minnesota 10.00(g) 10.08(g) 10.33(g)…” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “For the years indicated, the laws in Arizona, Arkansas, California, Colorado, Kentucky, Minnesota, Ohio, Utah, and Wisconsin applied only to women and minors.” “For the years 1988 to 1990, Minnesota had a two tier schedule with the higher rate applicable to employers covered by the FLSA and the lower rate to employers not covered by the FLSA.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- Minnesota Department of Employment and Economic Development, Unemployment Insurance uimn.org/employers/wages-taxes/tax-rates/new-employer-rates.jsp“Non-Construction Wholesale Trade 1.00”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“MN … $44,000”
- Minnesota Department of Employment and Economic Development content.govdelivery.com/accounts/MNDEED/bulletins/422fdf7“By law, employers can continue to collect up to 0.44% from employees in 2027, or employers can choose to cover more. Small employers pay a smaller share – as little as 0.22%.”
- Minnesota Revisor of Statutes (Minn. Stat. § 268B.14) revisor.mn.gov/statutes/cite/268B.14“(b) The premium rate for small employers eligible under this subdivision is 75 percent of the annual premium rate calculated in subdivisions 6 and 7, as follows: (1) employers must pay a minimum of 25 percent of the rate calculated in subdivisions 6 and 7.”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: $1.25-$1.50 … State Index rate Percent of study median … 17 12 Minnesota 1.25 114%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Minnesota 8,586 -- 8,255 8,753 8,370 8,631 8,336 8,644” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Minnesota 1,939 -- 2,629 * 2,480 1,714 1,755 2,661 1,770”