Seattle’s minimum wage will increase to $21.30 per hour in 2026, up from $20.76 in 2025, the city’s Office of Labor Standards announced Tuesday.
The increase follows Seattle’s minimum wage ordinance requiring annual hourly rate adjustments aligned with inflation in the Seattle-Tacoma-Bellevue area. All businesses regardless of size must pay employees at least the minimum wage.
A small business exemption that previously allowed employers to count tips and medical benefit plan payments toward minimum compensation expired this year, requiring all employers to pay the full minimum wage directly.
Seattle’s minimum wage will become the highest in Washington state, surpassing Burien’s $21.26 per hour and Tukwila’s $21.20 per hour rates, unless those jurisdictions increase their minimums for 2026.
The Office of Labor Standards calculates Seattle’s minimum wage each fall based on the Consumer Price Index percentage increase for the Seattle-Tacoma-Bellevue area. The index tracks average price changes urban consumers pay for goods and services.
Food costs rose 3.5% between August 2024 and August 2025. Energy prices increased 7.3%, with gasoline prices rising 4.2% during the same period. Other goods excluding food and energy averaged 2.6% cost increases.
The minimum wage adjustment reflects broader inflation trends affecting Seattle-area residents, with essential costs including food and energy experiencing above-average price increases compared to other consumer goods.
Seattle’s progressive minimum wage policy, implemented in 2014, has incrementally raised wages above federal and state minimums. The city reached a $15 minimum wage for large employers in 2017 and for all employers in 2021.
The 2026 increase of 54 cents per hour represents approximately a 2.6% raise for minimum wage workers, translating to roughly $1,123 additional annual income for full-time employees working 40 hours weekly.
Employers must comply with the new minimum wage by January 1, 2026. The Office of Labor Standards enforces compliance and investigates wage theft complaints.
