Illinois’s minimum wage remains unchanged at $15.00 per hour for now, but Missouri is set to see a significant increase: the state will move to $15.00 per hour effective January 1, 2026. This change follows recent state legislative action and court decisions, and employers in Missouri should prepare now to update payroll systems and budgets.

Why this matters

A jump to $15.00 has immediate payroll and compliance impacts for Missouri businesses—especially those with large hourly workforces or tight margins. Employers should review pay scales, job classifications, payroll processing, overtime thresholds, and any policies tied to hourly pay. If you have employees who work across state lines or in municipalities with their own wage rules, confirm which (highest) rate applies. 

Other states raising minimum wages on January 1, 2026

Missouri is not alone. Nearly 20 states have scheduled increases for 2026. Notable changes effective January 1, 2026 include (selected examples):

• Arizona: $14.70 → $15.15

• California: $16.50 → $16.90

• Colorado: $14.81 → $15.16

• Connecticut: $16.35 → $16.94

• Hawaii: $14.00 → $16.00

• Maine: $14.65 → $15.10

• Michigan: $12.48 → $13.73

• Minnesota: $11.13 → $11.41

• Missouri: $13.75 → $15.00

• New Jersey: $14.53 → $15.23

• New York: $15.50 → $16.50

• Rhode Island: $15.00 → $16.00

• Vermont: $14.01 → $14.42

• Virginia: $12.41 → $12.77

Federal rate still unchanged

The federal minimum wage remains $7.25 per hour. Where state or local minimums exceed the federal rate, employers must pay the higher applicable wage. This divergence between federal and many state/local rates means employers need to track the correct rate for each workplace.

Local and tipped-wage considerations

Many cities and counties also set their own minimum wages—sometimes higher than the state rate. In addition, several jurisdictions are revisiting tipped-wage rules, which can affect restaurants and service employers. Always apply the highest applicable wage (local, state, or federal) and watch for separate rules on tipped employees. 

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Under U.S. Treasury regulations, any tax advice in this communication is not intended or written to be used to avoid IRS penalties. Tzinberg & Associates provides this information for general guidance only. It does not constitute tax advice, accounting services, investment advice, or professional consulting. Consult a professional adviser before making decisions or taking action, as the information is provided "as is" without any warranties regarding its completeness, accuracy, or timeliness.