💵 Money › Minimum wage 2027 › California minimum wage 2027
Checked Oct 19, 2026California Minimum Wage 2027: $17.40 an Hour
By The Trends Incoming team · Published Oct 19, 2026 · Last updated Oct 19, 2026
California's statewide minimum wage goes from $16.90 to $17.40 an hour on January 1, 2027. That's 50 cents more, or about $20 a week and $1,040 a year for a full-time worker. The Department of Finance certified it on July 31, 2026, and it applies to every employer size.
| Jan 1, 2027 statewide rate | $17.40 OFFICIAL |
|---|---|
| 2026 rate | $16.90 |
| Raise | +$0.50 (about 3%) |
| Full-time weekly pay (40 hrs) | $676.00 now, $696.00 in 2027 |
| Overtime-exempt salary minimum | $72,384 a year ($17.40 x 2 x 40 x 52) |
| Tip credit | Not allowed. Tips can't count toward the minimum. |
| Learners | First 160 hours with no similar experience: at least 85% of the minimum |
🏙️ Check your city
Lots of California cities and counties set their own higher minimum wage, and the higher local rate wins. Covered fast food workers and many health care workers also have their own higher state minimums. The state rate is the floor, not always your number.
📋 For employers
Post the updated statewide minimum wage order and your industry wage order where workers can see them, and show each worker's wage rate on the pay stub. See our payroll checklist.
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Quick answers
What is California's minimum wage in 2027?
$17.40 an hour from January 1, 2027, for all employers, unless a higher local or industry rate applies.
How is California's minimum wage set?
It rises each year with the CPI-W inflation index, capped at 3.5% a year, and it can't go down. The Department of Finance certified the 2027 rate on July 31, 2026.
What is the exempt salary threshold in California for 2027?
$72,384 a year, which is twice the state minimum wage for full-time work. Exempt employees also have to meet the duties tests.
Can California employers count tips toward minimum wage?
No. California doesn't allow a tip credit.
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Sources
- CA DIR release 2026-66: $17.40 on Jan 1, 2027
- Governor of California: 2027 minimum wage announcement (Jul 31, 2026)
- CA DIR: minimum wage FAQ (local rates, fast food and health care rates)
By The Trends Incoming team · Fact-checked Oct 19, 2026. Dates and rates change, so double-check with the official source.