California minimum wage 2027: $17.40 an hour from January 1
California's statewide minimum wage is $16.90 an hour in 2026 and rises to $17.40 on January 1, 2027. How the increase is set and how inflation markets connect to it.
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The short answer
California's statewide minimum wage is $16.90 an hour in 2026 and rises to $17.40 on January 1, 2027. The Department of Finance certified the increase on July 31, 2026: the law raises the wage each year by inflation (CPI-W), capped at 3.5%, and this year's figure was 2.99%.
Last checked: October 13, 2026
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Last checked October 27, 2026
California minimum wage by year
| Year | Statewide minimum wage | In effect from |
|---|---|---|
| 2025 | $16.50 an hour | January 1, 2025 |
| 2026 | $16.90 an hour | January 1, 2026 |
| 2027 | $17.40 an hour | January 1, 2027 |
The rate is the same for every employer, whatever its size. Sources: the California Department of Industrial Relations minimum wage page (opens in a new tab) and its news release 2026-66 (opens in a new tab) on the 2027 rate.
How is the yearly increase calculated?
The increase is automatic. Each summer the Department of Finance compares the average national CPI-W (the consumer price index for urban wage earners and clerical workers) for the 12 months to June 30 with the 12 months before. If prices rose, the minimum wage rises by the same percentage from the following January 1, up to a cap of 3.5% a year.
For 2027 the measured rise was 2.99%, below the cap, so the full figure applied: $16.90 became $17.40. There is no vote and no veto step, which is why the amount is known months ahead.
Who earns more than the state minimum?
- Fast-food workers at chains covered by the state's fast-food law have had a $20 an hour minimum since April 1, 2024.
- Health-care workers have higher minimums that depend on the type of employer.
- Many cities and counties set a local rate above the state minimum. Where a local rate is higher, the employer must pay it.
These rates change on their own schedules. The Department of Industrial Relations keeps the current figures (opens in a new tab).
How do prediction markets connect to the minimum wage?
There is no contract on the California minimum wage itself: the 2027 rate is already set. The link is inflation. Because the yearly increase follows a published inflation number, the monthly Consumer Price Index releases show, month by month, where the next adjustment is heading.
Exchanges have listed contracts on those monthly CPI releases. A CPI contract is a yes-or-no question, for example "Will inflation for the month be above a stated level?" It pays $1 if the answer is yes and $0 if not, and it settles on the official Bureau of Labor Statistics release. The price before the release is the market's estimate, not a forecast you can rely on. Read the contract's exact question and settlement source before trading.
| CPI release | Covers | Time |
|---|---|---|
| October 14, 2026 | September 2026 | 8:30 a.m. ET |
| November 10, 2026 | October 2026 | 8:30 a.m. ET |
| December 10, 2026 | November 2026 | 8:30 a.m. ET |
Dates from the Bureau of Labor Statistics release schedule (opens in a new tab). The 2028 adjustment will use the 12 months to June 30, 2027.
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Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
Can I trade inflation contracts from California?
Status in California: Available, dispute pending (as of October 13, 2026). Kalshi, Polymarket US and OG accept eligible California residents; the court fights of 2026 have centered on sports contracts, not economic data. Which contracts are open differs by platform and by month, so check the app for current listings. Kalshi's, Polymarket US's and OG's minimum age is 18; we recommend 21+. Details are in our California legality guide, and the California tax guide covers how gains are reported.
About the author
Catie Di Stefano
Catie Di Stefano has spent 15 years in the regulated gambling industry, starting at Betsson Group in Malta and spending nearly five years at Gaming Innovation Group (GiG) before building an independent consultancy across European and US iGaming brands, including a licensed engagement with Hard Rock Hotel & Casino Atlantic City under a New Jersey DGE vendor license. She's been interviewed by the California Business Journal on the rise of online gambling in the US, and spoke on a 2022 Next.io panel specifically about California's gaming market. She went on to build the OnlineGamblers.com brand and hold marketing director roles at Smartico.ai and Vegas Kings, and has been named to multiple iGamingExpress industry rankings. She now covers regulated prediction markets full-time.
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Sources
- California Department of Industrial Relations, Minimum Wage: dir.ca.gov/dlse/minimum_wage.htm (opens in a new tab) (checked October 13, 2026)
- California Department of Industrial Relations, news release 2026-66, August 13, 2026: dir.ca.gov/DIRNews/2026/2026-66.html (opens in a new tab) (checked October 13, 2026)
- Bureau of Labor Statistics, CPI release schedule: bls.gov/schedule/news_release/cpi.htm (opens in a new tab) (checked October 13, 2026)
Frequently asked questions
What is the California minimum wage in 2027?
$17.40 an hour from January 1, 2027, for all employers. The Department of Finance certified the increase on July 31, 2026.
What is the California minimum wage in 2026?
$16.90 an hour, in effect since January 1, 2026.
How is the increase calculated?
By inflation. The state compares the average national CPI-W for the 12 months to June 30 with the 12 months before and raises the wage by that percentage, capped at 3.5% a year. For 2027 the figure was 2.99%.
Is the fast-food minimum wage different?
It is higher. Fast-food workers at chains covered by the state's fast-food law have had a $20 an hour minimum since April 1, 2024.
Can I trade on inflation from California?
Status in California: Available, dispute pending (as of October 13, 2026). Kalshi, Polymarket US and OG accept eligible California residents, and exchanges have listed contracts on monthly CPI releases. Check the app for current listings. The minimum age is 18; we recommend 21+.
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