Minnesota Minimum Wage 2026

The minimum wage in Minnesota is $10.85/hour as of 2026. See the tipped wage, scheduled increases, annual income at minimum wage, and how it compares to the federal poverty level.

Minimum Wage Quick Facts — Minnesota 2026

CategoryRate / Detail
Standard Minimum Wage$10.85/hour
Tipped Minimum WageFull minimum wage (no tip credit)
Federal Minimum Wage$7.25/hour (FLSA)
Scheduled Increases+CPI annually (large employers)
Full-Time Annual (2,080 hrs)$22,568/year
Part-Time Annual (30 hrs/wk)$16,926/year
As % of Federal Poverty Level (1 person)144% of FPL ($15,650)
SourceU.S. DOL Wage and Hour Division; Minnesota Dept. of Labor

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About Minnesota's Minimum Wage

Minnesota's minimum wage is $10.85/hour for large employers (annual sales over $500K) and $8.85 for small employers. Minnesota does not allow a tip credit — tipped workers receive the full minimum wage. The rate is indexed annually to inflation. Minneapolis and Saint Paul have higher local minimums.

Minimum Wage vs. Federal Poverty Level

The federal poverty guideline for a single person in 2026 is $15,650/year. At Minnesota's minimum wage of $10.85/hour, a full-time worker earns $22,568/year — 144% of the federal poverty level. For a family of four, the poverty guideline is $32,150/year; full-time minimum wage earnings represent 70% of that threshold.

Work ScheduleGross Annual Income at $10.85/hrvs. Federal Poverty Level
Full-time (40 hrs/wk)$22,568/year144% of single FPL
Part-time (30 hrs/wk)$16,926/year108% of single FPL
Part-time (20 hrs/wk)$11,284/year72% of single FPL
Federal Poverty (1 person)$15,650/year100%
Federal Poverty (family of 4)$32,150/yearN/A

Frequently Asked Questions — Minnesota Minimum Wage

The minimum wage in Minnesota is $10.85/hour as of 2026. A full-time worker at minimum wage earns $22,568/year gross before taxes. Minnesota's minimum wage is $10.85/hour for large employers (annual sales over $500K) and $8.85 for small employers. Minnesota does not allow a tip credit — tipped workers receive the full minimum wage. The rate is indexed annually to inflation. Minneapolis and Saint Paul have higher local minimums.

The tipped minimum wage in Minnesota is Full minimum wage (no tip credit). Employers who pay the tipped minimum must ensure that tips received by the employee are sufficient to bring total compensation to at least $10.85/hour. If tips are insufficient, the employer must pay the difference (called a tip credit makeup).

Scheduled increases: +CPI annually (large employers). Check the Minnesota Department of Labor and the U.S. Department of Labor Wage and Hour Division for the most current information, as minimum wage schedules can change with new legislation or ballot measures.

At $10.85/hour, full-time earnings of $22,568/year represent 144% of the federal poverty level for a single person. MIT's Living Wage Calculator estimates that a living wage in most Minnesota counties ranges from $18 to $35/hour depending on family size and local housing costs. Minimum wage alone is generally insufficient to cover basic living expenses in most of Minnesota without government assistance or additional income.

The federal minimum wage is $7.25/hour under the Fair Labor Standards Act (FLSA). It has not increased since July 24, 2009 — the longest period without a federal minimum wage increase in history. When state minimum wages exceed the federal minimum, the higher state rate applies to covered workers. In Minnesota, the applicable minimum wage is $10.85/hour.