Minimum Wage

State Minimum Wages for 2026

We have updated minimum wages for the states that we currently support. However, you need to be aware of some exceptions.

Note  Please carefully check the minimum wages in your State Tax Rate Table to make sure they are correct for your state and situation.

Some states have a new minimum wage that goes into effect on a date other than 01/01/2026.

  • Oregon will change their wage rate on 7/1/2026. However, the amount has not been announced. Oregon employers will need to update their state tax rate files or enter the new minimum wage manually in July.

  • Florida will change its minimum wage to $15.00 an hour on 9/30/2026. This rate change is included in the current tax rate file.

Many states and some cities are implementing different hourly minimum wage rates. These differing rates can depend on several factors that are outside the scope of the program to determine, such as:

  • The size of your company (including number of employees or annual revenue.

  • Whether or not the employer is subject to the Federal minimum wage.

  • Whether or not the employer provides health insurance.

  • Where the work is performed.

  • States with multiple minimum wages include Georgia, Nevada, New Jersey, and New York.

What you need to do

The State Tax Rate file only contains ONE minimum wage rate per state. In these states, we have set up the higher rate per hour, but if there is a lower rate based on one of the above factors, you can edit for the appropriate rate.

Warning  We do not support any city income tax calculations or reporting, although you can calculate the tax and use a miscellaneous deduction to track it.

The State Tax Rate file does not support different rates for different regions within a single state. If your company operates in different regions within one state where different minimum wage rates apply, contact Datatech support so that we can get more information about your situation and determine the best workaround.

Annual Increases

Many states have minimum wage increases that go into effect at the beginning of the year. For instance, in California the minimum hourly wage increases to $16.90 an hour on January 1, 2026. This change is included in the new State Tax Rate file for 2026 and will be installed automatically.

Note  Minimum wage verification is performed based on the date worked. The minimum wage effective in 2025 is included in the 2026 tax rate file so that if the last pay period of 2025 includes piecework wages, the minimum wage verification can be done based on the rate effective in 2025. In the case of California, for instance, all work performed on or after 1/1/26 will have the new rate of $16.90/hour applied.

Updating Pay Rates

Employees that are paid on an hourly basis, or guaranteed wage rates that are at or below the new minimum wage, may need to be updated. The following information will assist you in making these changes.

The Employee File Utilities wizard found under Payroll > Utilities > Employee File Utilities can be used to perform a mass update of employee pay rates.