California minimum wage 2026: one rate for every employer
Every California employer, large or small, must pay at least $16.90 an hour in 2026. The yearly adjustment has run since the state's $15.00 floor was implemented for all employers, which the Department of Finance dates to January 1, 2023. Each year the Director of Finance recalculates the wage by August 1, and the new rate starts the following January 1[dof]. The Department of Labor's state table also lists California at $16.90[dol1].
| Year | Hourly minimum | Source |
|---|---|---|
| 2023 | $15.50 | US DOL history table |
| 2024 | $16.00 | US DOL history table |
| 2026 | $16.90 | CA Department of Finance |
| 2027 | $17.40 | CA Department of Finance |
The 2023 and 2024 rows come from the Labor Department's history of state rates[dol3]. The 2025 rate is left out of this table because the state's notice for that year could not be loaded to confirm it for this update.
How California sets the 2027 minimum wage
The 2027 rate is $17.40 because consumer prices rose 2.99%. Labor Code section 1182.12 sets the method. The Department of Finance compares the average U.S. CPI-W for July 2025 through June 2026 with the previous 12 months, and the increase is capped at 3.5%. This year's 2.99% change applies to all employers on January 1, 2027. The Director certified it on July 31, 2026[dof], and the Governor announced it the same day, noting the increase is automatic under state law[gov].
For a full-time worker the change is worth about $1,040 a year before tax (50 cents an hour for 2,080 hours). At $17.40, full-time pay is $36,192 a year, and a single filer would keep about $30,315 after withholding on the 2026 tables used in the calculator below.
Local minimum wages in Los Angeles and San Francisco
Several California cities require more than the state rate, and they adjust on July 1 rather than January 1. Two of the largest:
| City | Rate from July 1, 2026 | Prior rate | How it adjusts |
|---|---|---|---|
| Los Angeles (city) | $18.42 | $17.87 | Each July 1 by the Los Angeles-area CPI-W |
| San Francisco | $19.61 | $19.18 | Each July 1 |
Los Angeles raised its rate by $0.55 on July 1, 2026. It applies to employees who do at least two hours of work within the city for an employer and who are owed a minimum wage under California law[la]. San Francisco's official rate history runs from $15.00 in July 2018 to $19.61 in July 2026[sf]. Covered employees in these cities are owed the local rate, which is above the state's $16.90.
Tips, fast food, health care and overtime in California
California employers cannot pay tipped workers less than the full minimum wage. The Department of Labor lists California among the states that require the full state rate before tips, with no tip credit[dol2].
Two industries have their own, higher floors. The Governor's office describes them as $20 an hour for fast-food workers and $25 an hour for health care workers[gov]. Coverage rules and the health care schedule differ by type of employer and are not detailed here.
Overtime. At $16.90, time and a half is $25.35 an hour. The federal rule pays overtime after 40 hours in a workweek[flsa]. California has its own overtime statute (Labor Code section 510) that also looks at daily hours, but we could not load the Labor Commissioner's overtime guidance to confirm the daily thresholds for this update, so they are not repeated here. The calculator's overtime field works with whatever overtime hours you enter.
California minimum wage after taxes
A full-time job at $16.90 an hour is $35,152 a year before tax (2,080 hours). After federal income tax, Social Security, Medicare and California withholding, a single worker keeps about $29,539, or $1,136.12 every two weeks. Change hours, overtime or W-4 details in the calculator below; for other pay levels use the California paycheck calculator.
| Hours a week | Weekly gross | Yearly gross | Yearly take-home | Take-home per hour |
|---|---|---|---|---|
| 20 | $338.00 | $17,576 | $15,855 | $15.25 |
| 30 | $507.00 | $26,364 | $22,813 | $14.62 |
| 40 | $676.00 | $35,152 | $29,539 | $14.20 |
Take-home at minimum wage
California minimum wage paycheck
Preset to $16.90 an hour, 40 hours a week, paid every two weeks.
Take-home pay$1,136.12every two weeks · $29,539 a year
| Item | Per paycheck | Per year |
|---|---|---|
| Earnings | ||
| Gross pay | $1,352.00 | $35,152.00 |
| Taxes | ||
| Federal income tax | −$78.39 | −$2,038.24 |
| Social Security (6.2%) | −$83.82 | −$2,179.42 |
| Medicare (1.45%) | −$19.60 | −$509.70 |
| California income tax | −$16.48 | −$428.48 |
| CA SDI (1.3%) | −$17.58 | −$457.08 |
| Total taxes | −$215.88 | −$5,612.93 |
| Net pay | $1,136.12 | $29,539.07 |
Taxes take 16% of gross pay in California. Your top federal withholding bracket is 12%.
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Related pay tools
Overtime at the minimum wage is $25.35 an hour (time and a half): see the time and a half calculator. Add up shifts with the time card calculator, and compare states with the state tax calculator.
Frequently asked questions
What is the minimum wage in California in 2026?
$16.90 an hour for all employers, effective January 1, 2026. Some cities, including Los Angeles and San Francisco, require more.
What will the California minimum wage be in 2027?
$17.40 an hour from January 1, 2027, a 2.99% increase based on the U.S. CPI-W. The Department of Finance certified it on July 31, 2026.
Can California employers count tips toward the minimum wage?
No. California has no tip credit, so tipped employees must be paid at least the full $16.90 an hour before tips.
How much is $16.90 an hour a year after taxes in California?
Full time is $35,152 a year before tax. A single filer with a standard 2026 W-4 keeps about $29,539 after federal income tax, Social Security, Medicare and California withholding.
Is the Los Angeles minimum wage higher than California's?
Yes. The City of Los Angeles minimum wage is $18.42 an hour from July 1, 2026, compared with the $16.90 state rate.
Sources
- Minimum Wage Increase, Director of Finance Determination and Certification
- Governor Newsom announces California will raise statewide minimum wage
- July 1, 2026 Minimum Wage Ordinance Wage Rate Increase
- Historical San Francisco Minimum Wage Rates
- State Minimum Wage Laws
- Minimum Wages for Tipped Employees
- Changes in Basic Minimum Wages in Non-Farm Employment Under State Law, 1968 to 2024
- Overtime Pay (Fair Labor Standards Act)