Minimum Wage by State 2024: Which States Raised Their Rates and What It Means for Your Paycheck

Minimum wage is not a static number — it’s a patchwork of federal floors, state laws, and local ordinances that gets updated constantly. In 2024, more than 20 states saw their minimum wage increase, with several crossing significant thresholds. For hourly workers, these changes directly affect weekly take-home pay. For employers, they trigger payroll recalculations. Here’s the full picture.

States That Raised Minimum Wage in January 2024

Most states with indexed minimum wages (tied to inflation or the Consumer Price Index) adjusted their rates on January 1, 2024:

State	2023 Rate	2024 Rate	Change
California	$15.50	$16.00	+$0.50
Washington	$15.74	$16.28	+$0.54
Colorado	$13.65	$14.42	+$0.77
Connecticut	$15.00	$15.69	+$0.69
Illinois	$13.00	$14.00	+$1.00
Maryland	$13.25	$15.00	+$1.75
Michigan	$10.10	$10.33	+$0.23
Minnesota	$10.59	$10.85	+$0.26
Missouri	$12.00	$12.30	+$0.30
New Jersey	$14.13	$15.13	+$1.00
Ohio	$10.10	$10.45	+$0.35
Rhode Island	$13.00	$14.00	+$1.00
South Dakota	$10.80	$11.20	+$0.40

New York’s Tiered Structure in 2024

New York uses geographic tiers rather than a single statewide rate:

Region	2024 Rate
New York City	$16.00
Long Island & Westchester	$16.00
Rest of New York State	$15.00

NYC and its surrounding high-cost counties moved to $16.00 on January 1, 2024 — matching California’s statewide rate. The rest of the state follows a schedule targeting $15.00, already reached.

California’s Industry-Specific Rates

California went further than just the general $16.00 rate. In April 2024, fast food workers at chains with 60+ locations saw their minimum wage jump to $20.00/hour under AB 1228. Healthcare workers at large facilities are on a schedule to reach $25.00/hour. For those workers, the effective minimum is now substantially higher than the $16.00 floor.

What These Raises Mean for Take-Home Pay

A wage increase doesn’t translate dollar-for-dollar into take-home pay — federal and state taxes, FICA, and potentially benefits withholding all apply. Here’s a real-money breakdown for a single worker going from $15.74 to $16.28/hour in Washington:

	Before (WA 2023)	After (WA 2024)
Hourly rate	$15.74	$16.28
Annual gross (40hrs × 52wks)	$32,739	$33,862
Federal income tax (est.)	~$2,265	~$2,508
FICA (7.65%)	$2,505	$2,590
WA state income tax	$0 (no income tax)	$0
Estimated annual take-home	~$27,969	~$28,764
Monthly difference	—	+$66/month

Washington has no state income tax, which means minimum wage workers keep more of every dollar compared to equivalent workers in California or Illinois. Use our hourly to salary calculator to convert any hourly rate to an estimated annual take-home in your specific state.

States Still at Federal Minimum ($7.25)

As of 2024, these states have not passed their own minimum wage laws above the federal floor and default to $7.25/hour:

• Alabama
• Georgia
• Idaho (though in practice, most workers earn more)
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Mississippi
• North Carolina
• North Dakota (has its own $7.25 law)
• Oklahoma
• South Carolina
• Tennessee
• Texas
• Utah
• Wisconsin
• Wyoming

Workers in these states rely on the federal minimum — and at $7.25/hour, full-time annual gross income is just $15,080.

The $15 National Minimum Wage Debate

While Congress has not passed a federal $15 minimum wage, the economic reality has moved in that direction: as of 2024, 30 states plus the District of Columbia have minimum wages at or above $15.00/hour. The federal floor of $7.25 is increasingly irrelevant in practice — most employers in low-wage states still pay above it due to labor market conditions.

Calculating Your Real Hourly Take-Home

Your hourly gross rate is not your hourly take-home rate. Federal income tax, Social Security (6.2%), and Medicare (1.45%) come out first. State income tax adds another layer in most states.

For a worker earning $16.00/hour, filing single, taking the standard deduction, with no other income:

	Annual
Gross wages	$33,280
Standard deduction	$14,600
Taxable income	$18,680
Federal income tax	~$2,082
Social Security tax	$2,063
Medicare tax	$482
Total tax	~$4,627
Annual take-home	~$28,653
Effective hourly take-home	~$13.78

That’s 86 cents per dollar of gross pay reaching the worker’s pocket — before any state income tax, which would reduce it further.

To see your specific numbers, use our paycheck calculator and select your state. You can also read about understanding your paycheck to understand every line item.

What to Watch for in 2025

Several states have scheduled increases for January 2025:

• California: Fast food sector $20/hour baseline (healthcare heading higher)
• Illinois: Reaches $15.00/hour (from $14.00)
• Maryland: Reaches $15.00 statewide for all employers
• Michigan: Scheduled increase under court-ordered timeline
• New York: Further increases in non-NYC regions

For hourly workers and employers alike, staying current on state-specific schedules is essential payroll compliance — and for workers, the difference of even $0.50/hour adds up to more than $1,000 annually in gross pay.