Minnesota's minimum wage of $11.41 in 2026 is about average in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Minnesota is $456.40. For full-time employees working 52 weeks per year, the annual minimum wage in Minnesota is $23.7K.
Based on $11.41/hr minimum
Based on $11.41/hr minimum
The minimum wage rate of Minnesota and its neighboring states ranges from $7.25 to $13.73, with an average of $9.79. Minnesota, at $11.41, has an above average hourly minimum wage within this group of states. Michigan ($13.73) and South Dakota ($11.85) both have higher hourly rates than Minnesota. Iowa ($7.25), North Dakota ($7.25), and Wisconsin ($7.25) have lower hourly rates than Minnesota.
While the general minimum wage is $11.41 per hour in Minnesota, there are several exceptions where workers may legally receive less than this amount:
Employees under age 20 may be paid a reduced training wage during their first 90 consecutive days of employment at $9.31 per hour instead of the standard $11.41.
Some agricultural workers meeting specific criteria may be exempt from state minimum wage requirements.
Individuals volunteering for nonprofit organizations are not considered employees under minimum wage law.
Workers meeting salary and duty requirements (white-collar exemptions) are not subject to minimum wage laws.
Employees primarily engaged in outside sales are exempt from minimum wage requirements.
A few cities in Minnesota have specific minimum wage exceptions as well:
Minnesota's cost of living index for 2025 is 94.6, which places it as the 31st most expensive state to live in the United States.
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Assuming a standard 40-hour work week, the real wage in Minnesota, adjusted for the state’s cost of living index of 94.6, is approximately $12.06 per hour. This means that while the nominal minimum wage is $11.41 per hour, the purchasing power of those earnings is higher due to Minnesota's lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $482.45, translating to an annual purchasing power of $25,087.53 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Minnesota’s minimum wage is adjusted annually for inflation under state law, which ties wage increases to changes in the Consumer Price Index or a capped inflation formula. This system, enacted through state legislation, ensures that wages are automatically updated each year without requiring new legislative action.