CAIndexed annually
California minimum wage 2026
The California minimum wage is $16.50 per hour as of 2025-01-01. The tipped cash wage is $16.50 with a tip credit of $0.00. [CA labor dept.][DOL WHD]
Standard minimum
CA$16.50
Effective 2025-01-01.
Verified 2026-06-24
Tipped cash wage
$16.50
Tip credit ceiling $0.00.
Verified 2026-06-24
vs federal $7.25
+$9.25
Above the federal minimum.
Verified 2009-07-24
Next scheduled step
$16.90
Effective 2027-01-01.
Verified 2026-06-24
Tip-credit split
Full cash wage of $16.50 per hour. No tip credit permitted.
Take-home at the California minimum
Estimated take-home at $16.50 per hour
20 hours/week
$330.00
~$290/wk after tax
$17,160 annual gross
30 hours/week
$495.00
~$419/wk after tax
$25,740 annual gross
40 hours/week
$660.00
~$546/wk after tax
$34,320 annual gross
Estimate uses 2026 federal brackets (single filer), FICA 7.65 percent, and a flat state effective rate. Actual withholding varies by W-4 and credits.
Statute and indexing
California bans the tip credit; tipped workers receive the full state minimum in cash per Lab. Code 351. Fast-food workers at covered chains (20+ nationwide locations) earn $20.00 per hour under AB 1228. Healthcare workers earn $18.00-$24.00 under SB 525 depending on facility type.
Local ordinances above the California rate
Companion page
California rate history
Tool
Take-home calculator
Reference
Federal vs state delta