State minimum wages and cost of living

The takeaway

The federal minimum wage is the lowest hourly rate employers are required to pay workers. It’s been $7.25 per hour for a while now. State minimum wages are a different story: Many are higher than the federal minimum, but the benefits can vary depending on cost of living in that location.

Mapping state minimum wages

Washington DC and 30 of the 50 US states have minimum wages higher than the federal minimum. The median minimum wage for US states, including DC, is currently $11.85.

Our FRED map above shows these minimum wages in 2026.

Gray shading indicates a state either follows the federal minimum wage of $7.25 or has chosen to set their minimum wage at the same rate.

Other colors indicate the state minimum wage is higher than the federal minimum, from the lowest in light yellow to the highest in dark green. As of 2026, the highest of these state minimum wages is $18.40 in DC and the lowest is $8.75 in West Virginia.

Adjusting for cost of living

States consider many factors when setting their minimum wage, including cost of living. Our FRED map above shows one such measure: regional price parities (RPPs).

RPPs assign values to the relative price level in each state compared with the national average, which has a value of 100. California is highest, at 110.72, which means prices there are 10.7% higher than the national average. Arkansas is lowest, at 86.94, with prices about 13.1% lower than average.

RPPs are determined by the average prices paid for a typical basket of goods and services, which is applied consistently across states and reflects what the average household would consume, not necessarily what the average minimum wage worker would consume. Note that state-level RPPs are an average for the entire state; but of course, cost of living can vary within a state. For example, Florida’s RPP is 103.41. Within the state, though, RPPs vary from 95.47 in the Tampa area to 103.56 in the Miami area.

Adjusting the minimum wage by RPPs provides a measure of real purchasing power across states. For example: DC has the highest minimum wage, but also a high cost of living. Its minimum wage value drops by about $1.66 to $16.74 once adjusted by its RPP. New Hampshire is one of 13 states with the lowest minimum wage ($7.25), which drops to $6.96 once adjusted by its RPP.

How these maps were created: First map: Search FRED for and select “State Minimum Wage Rate for Missouri” (series ID STTMINWGMO). Or any state, really. In the upper right, click “View Map” and then the blue “Edit Map” button. Click the light-yellow color (next to the less than or equal to 7.25) and change the color to gray (#999995) so all states with a minimum wage equal to or below $7.25 appear gray. Second map: Search FRED for and select “Regional Price Parities: All Items for Missouri” (series ID MORPPALL) and click “View Map.”

Suggested by Reagan Gilmore and Charles Gascon.