Minneapolis Minimum Wage 2027: $17.02 an Hour
Short answer: Minneapolis's minimum wage rises to $17.02 an hour on January 1, 2027, from $16.37 in 2026. The same rate now applies to every employer in the city regardless of size, and it is $5.15 above Minnesota's statewide $11.87.
What the city says
The City of Minneapolis's minimum wage site says the 2026 rate is $16.37 and that on January 1, 2027 it increases to $17.02. It notes that Minneapolis has a higher minimum wage than the rest of the state, that the rate is now the same for everyone across the city, and that it increases every January 1 for inflation, capped at 5%. The $0.65 raise is about 4.0%, under the cap.
Who has to pay it
Coverage depends on where the employee physically works. It applies regardless of employer size or the employee's age. A business located outside Minneapolis owes the Minneapolis rate for hours an employee works in the city if the employee does at least two hours of work in a calendar week there. A courier, plumber or traveling nurse who works only occasionally in the city can therefore be covered for that week.
Pay at $17.02, and compared with the state
A full-time worker at 2,080 hours earns $35,402 a year before taxes at the Minneapolis rate, versus $24,690 at Minnesota's 2027 statewide $11.87. The gap is $10,712 a year. Minnesota's overtime threshold is also unusual: the U.S. Department of Labor lists premium pay after 48 hours a week under state law, but the FLSA's 40-hour rule still applies, and only FLSA overtime counts for the federal deduction. See state vs. federal overtime.
Frequently asked questions
What is the Minneapolis minimum wage in 2027?
The City of Minneapolis says its minimum wage is $16.37 in 2026 and rises to $17.02 on January 1, 2027. It is now the same for everyone across the city regardless of employer size or the employee's age.
How much higher is it than the Minnesota minimum wage?
Minnesota's statewide minimum wage is $11.87 in 2027 according to the Department of Labor and Industry, so Minneapolis is $5.15 an hour higher.
Does the Minneapolis wage apply to employers outside the city?
Yes. The city says an employer located anywhere must pay at least the Minneapolis minimum for time an employee works in Minneapolis, if the employee performs at least two hours of work in a calendar week within the city.
How is the Minneapolis rate adjusted?
The city says the minimum wage increases every January 1 to account for inflation, capped at 5%.
Is Saint Paul the same as Minneapolis?
No. Saint Paul has tiered rates by business size, with a July 1, 2027 step for some tiers. See the Saint Paul page.
Sources and citations
Every dollar figure on this page was checked against the official pages below on November 14, 2026. If an agency updates its guidance, the agency page controls.