Minnesota and Minneapolis minimum wages going up: Here are the new rates

MINNEAPOLIS (FOX 9) - The minimum wage is going up in Minnesota and Minneapolis in 2027. Here's a look at the new rates.

State minimum wage set to rise

What we know:

Minnesota's minimum wage will climb to $11.87 an hour for all employers starting Jan. 1, 2027.

The state's 90-day training wage for workers under 20 years old will also increase, rising to $9.68 an hour. Both rates reflect a 3.99% adjustment.

Minneapolis minimum wage climbing higher

By the numbers:

While the state sets a baseline, Minneapolis has its own minimum-wage ordinance that requires a higher rate for work performed within city limits — and that rate is going up too.

The new Minneapolis minimum wage will be $17.02 per hour starting Jan. 1, 2027, up from $16.37 during 2026, according to city minimum-wage ordinance guidance.

Yearly increases in both city and state minimum wages are tied by law to federal inflation statistics, and the state increase is capped at 5% under state law. These increases automatically take effect at the start of every year.

What we don't know:

St. Paul has not yet set its 2027 minimum wage rate for large employers. According to its website, the city plans to announce that rate on Sept. 1.

However, we do know the rate for small employers (6 to 100 employees) will be $16.37 per hour, the rate for micro employers (5 or fewer employees) will be $14.25 per hour, and the youth rate (workers ages 14 to 17) will be $13.95.

The Source: Minnesota Department of Labor and Minneapolis city minimum-wage ordinance guidelines.