URGENT UPDATE: Colorado has officially set its new minimum wage for 2026, confirming a rate of $15.16 per hour, effective January 1. This represents a 35-cent increase from the $14.81 minimum wage in 2025. As one of 19 states raising wages, Colorado’s decision places it among the leaders in labor compensation, significantly exceeding the federal minimum wage of $7.25, which has remained unchanged since 2009.
The annual adjustment of Colorado’s minimum wage is based on the consumer price index, reflecting the rising costs of essential goods like food and housing. This increase is part of a broader trend, with Colorado becoming one of 18 states that enforce a minimum wage of $15 or more.
For workers who earn tips, the minimum wage will also see an increase, rising from $11.79 to $12.14. This amount is calculated with the federal tip credit of $3.02, ensuring that tipped employees receive fair compensation amidst rising living costs.
Local municipalities are empowered to set their own minimum wages, leading to even higher rates in cities like Denver, Boulder, and Edgewater. Denver will lead the state with a staggering minimum wage of $19.29 in 2026, while Edgewater will set its minimum at $18.17. Both cities surpass Washington State’s minimum wage of $17.13, currently the highest in the nation.
In Boulder, the minimum wage will adjust to $16.82, a decision made after the county’s commissioners abandoned a previous plan to increase the rate to $25 by 2030.
As these changes roll out, the impact on Colorado’s workforce will be significant. With living costs on the rise, this new minimum wage is expected to provide much-needed relief for many residents.
Stay tuned for further updates as the situation develops and local governments finalize their respective minimum wage policies. This critical wage increase will play a vital role in shaping the economic landscape for workers across Colorado in the coming year.
