On January 1, 2027, California's minimum wage rises from $16.90 to $17.40 per hour. California does not allow a tip credit, so servers and bartenders must also be paid at least $17.40 an hour before tips. Fast food chains with 60+ locations nationwide pay $20.00, and Los Angeles and San Francisco have their own higher rates that change every July 1.
| Rate | 2026 | Jan 1, 2027 | Change |
|---|---|---|---|
| Statewide minimum wage | $16.90 | $17.40 | +$0.50 |
| Servers, bartenders and other tipped staff (no tip credit) | $16.90 | $17.40 | +$0.50 |
| Fast food chains (60+ locations nationwide) | $20.00 | $20.00 | No change announced |
The statewide rate is adjusted each year for inflation (CPI-W), with the increase capped at 3.5%. The fast food rate has applied since April 1, 2024; the Fast Food Council can raise it, but no increase had been announced when we checked on November 9, 2026.
Some California cities set their own minimum wage. Where a city rate is higher than the state rate, you pay the city rate. Los Angeles and San Francisco change their rates every July 1, not January 1.
| City | Since Jul 1, 2026 | Next change |
|---|---|---|
| City of Los Angeles | $18.42 | Jul 1, 2027 (not yet announced) |
| San Francisco | $19.61 | Jul 1, 2027 (not yet announced) |
Neither city allows a tip credit either. Both city rates are already above $17.40, so the January 1 state increase does not change the floor for restaurants inside these cities. We have not yet verified other cities' 2027 rates; check your city's official site.
Enter only the staff who are paid below $17.40 today. Everything is calculated in your browser; nothing is sent anywhere.
Assumes 52 weeks a year. Because California has no tip credit, tipped staff get the full $0.50 increase, the same as everyone else at the minimum. Does not include fast food chains with 60+ locations nationwide, which already pay $20.00.
A restaurant with 10 servers working 25 hours a week and 5 kitchen staff working 30 hours a week, all earning $16.90 today:
At $80,000 in monthly sales, that is about 1.2% of sales.
Paying servers less because they earn tips. California does not allow a tip credit. Servers get the full $17.40.
Assuming the $20.00 fast food rate applies to you. It covers fast food chains with 60+ locations nationwide. Most independent restaurants follow the state or city rate.
Forgetting the city rate. If your city's rate is higher than $17.40, the city rate is your floor, and it changes on its own date.
Yes. It rises from $16.90 to $17.40 per hour on January 1, 2027.
There is no separate tipped minimum wage. California does not allow employers to count tips toward the minimum wage, so tipped employees must be paid at least $17.40 per hour, with tips on top.
Only if you are part of a fast food chain with 60+ locations nationwide. That rate has been $20.00 since April 1, 2024, and no increase had been announced as of November 9, 2026.
Since July 1, 2026: $18.42 in the City of Los Angeles and $19.61 in San Francisco. Both change every July 1. The July 2027 amounts have not been announced.
California adjusts its minimum wage each year for inflation (CPI-W), with the increase capped at 3.5%.
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Last verified November 9, 2026.