Workers in Denver are set to benefit from an increase in minimum wage as of the 1st of January 2026. It will rise from $18.81 to $19.29 an hour, keeping wages aligned with the current cost of rent, groceries, and child care. If you are the type of person who relies on hourly work, this increase will likely make a huge difference in your life. Below, we will find out more about the changes in Denver’s minimum wage and see where the city ranks against other cities and states with the highest minimum wage in the United States.
What Will Happen in 2026 Regarding Denver’s Minimum Wage
According to the city, the minimum wage will increase across the city to $19.29 per hour as of the very first day of 2026. This is up from the wage in 2025 of $18.81 and reflects the local annual inflation adjustment laws. While it may not seem much, that extra 48 cents per hour adds up over a month and prevents workers from suffering as expenses increase every year. This new increase applies to all jobs that take place within the boundaries of the City and County of Denver. This is regardless of where the employer is based.
How Denver Works Out Its Annual Minimum Wage Increase
Denver set a wage floor in 2019, and their annual formula has been pretty straightforward since then. Every year, the city adjusts its minimum wage using the regional CPI-W, which for 2026 was 2.56%. By applying this approach, Denver’s minimum wage never falls behind the everyday costs of living of those employed within the city boundaries. This includes costs such as transportation, utilities, and food, which continue to rise over time. Since the adjustment is based on a formula, the number can rise in years of high inflation and then stabilize when inflation lowers.
What Tipped Workers Should Know in 2026
In Denver, bars and restaurants are required to follow special rules. For example, they may count up to $3.02 per hour in documented tips toward the minimum. In 2026, this means that a bae cash wage of $16.27 as long as the tips bring the total pay to at least $19.29. So, that means that if your tips for the shift fall short, your employer will have to make up the difference. Outside of the food and drink industry, however, no tip credit is allowed. It’s always a good idea to keep accurate records of the hours that you have worked, the tips you received, as well as your pay stubs.
Denver vs. Colorado and the Federal Floor
Denver’s minimum wage is much higher than Colorado’s ($14.81 in 2025) and well above the federal rate ($7.25 since 2009). Since Denver sets a much higher local rate, a cashier on Colfax can legally make more money than a person doing the exact same job just outside the city limits. If you work at different sites, it doesn’t matter where the main office of your company is; it matters where you actually work the shift. Your pay may change once you cross the city line, so always keep a record of the addresses of the worksites and your pay stub.
Top States with the Highest Minimum Wages
So statewide, which states pay the highest minimum wages right now? At the moment, Washington is in the lead at $16,66 with California following just behind with $16.50. New York’s top regional rate, which covers New York City, Long Island, and Westchester, is currently set at $16.50. However, the rest of the state is lower, with Connecticut’s minimum wage currently set at $16.35. Next up is New Jersey, with most workers set to receive a minimum of $15.49 state-wide.
Top Five Cities with the Highest Local Minimum Wages
The biggest paychecks are mostly around Seattle. Burien pays $21.16 for big companies, and Tukwila pays $21.10 for big companies (medium ones catch up later in the year). Renton pays $20.90 for big companies and $19.90 for medium-sized ones starting in July. Seattle’s rate is $20.76 for most workers, and SeaTac pays $20.17 for airport, hotel, and transport jobs. In California, West Hollywood is $19.65 for many non-hotel jobs, and San Francisco is $19.18. These city rates change every year, so the “top five” often shifts.
How This Increase Affects Family Budgets
When it comes to family budgets, every cent helps. The increase from $18.81 to $19.29 adds an extra 48 cents per hour. While that may not seem like much on the surface, over a period of 30 hours a week, that adds up to around $14.40 before taxes. At 40 hours, that’s roughly around $19.20 every week (or almost $1,000 a year if you work steadily). Think of all the little things that you can take care of for that amount of cash that would usually just be left undealt with.
The Bottom Line
Denver’s minimum wage increase allows workers to take care of the annual rise in living expenses. Without the increase, they would soon find themselves incapable of keeping up with bills, rent, and other expenses. In 2026, Denver’s minimum wage will exceed every statewide rate, trailing only behind cities in Seattle when it comes to local rates. For families, that means there is more cash to take care of the little things in life and not being pulled under by rising annual inflation.