(IN, MI, OH) - Workers in neighboring states will see higher minimum wages in 2026, but Indiana does not plan to raise its minimum wage.
Michigan and Ohio are among 22 states -- plus Washington, D.C. -- that will increase their minimum wages starting next year. Indiana is not on that list and will continue to follow the federal minimum wage of $7.25 an hour, unchanged since 2009. In Michigan, minimum wage will increase to $13.75 per hour. In Ohio, the state's minimum wage will be $11.00 hourly.
In total, the states raising wages include much of the Midwest, Northeast, and West Coast. In some places, the new minimum wages will be more than double the federal level. Washington, D.C., will have the highest rate at nearly $18 an hour.
Supporters of the increases say higher wages will help workers struggling with the rising cost of housing, food, and other essentials. Economists note the increases can provide relief for low-income workers but are unlikely to solve broader affordability issues on their own.
Federal labor data shows only about 1 percent of hourly workers currently earn the federal minimum wage or less, but wage floors can influence pay levels above the minimum as well.
Economists also say businesses typically respond to higher wages by absorbing some costs or passing along modest price increases to consumers.
Most of the state wage increases will take effect on Jan. 1, though a few states plan to raise wages later in the year.