2027 Minimum Wage Increases: What Shirt Shops Will Pay

Fourteen states raise their minimum wage on Jan. 1, 2027, according to their labor departments, governors' offices and state statutes, with Washington highest at $17.73 an hour and California close behind at $17.40. The federal minimum stays at $7.25. Several large states, including New York, Missouri and Hawaii, hold their rates on Jan. 1. For a shirt shop with part-time press, weeding or packing help, the raise is small per shirt but adds up over a year. Here are the confirmed rates and what they mean for pricing.

States raising the minimum wage on Jan. 1, 2027

Each rate below was confirmed on an official state source on Nov. 14, 2026.

Local rates can be higher than the state rate. A shop in a city with its own minimum wage should check the city's 2027 rate as well.

States that do not change on Jan. 1, 2027

Arizona and Nebraska also index their rates, but their 2027 figures could not be confirmed on an official state page as of Nov. 14, 2026. Check the state labor department before setting 2027 pay in those states.

What it costs per shirt

The per-shirt effect depends on how many shirts one paid hour produces. As an illustration, using wages only (before payroll taxes and workers' comp):

The math is the wage divided by shirts per hour. The bigger effect is usually on the slow hours: setup, weeding HTV, folding, bagging and answering customers. A shop that pays for 20 hours a week of help at California's new rate spends about $520 more over 2027 than at the 2026 rate, before payroll taxes. That is $0.50 more an hour times 20 hours times 52 weeks.

What to do before January

1. Update payroll for Jan. 1. Raise every hourly rate that falls below the new minimum, including part-time and seasonal help hired for the holidays.
2. Replace the workplace poster. State labor departments publish updated minimum wage posters for 2027.
3. Re-cost your labor per shirt. Plug the new wage into your cost sheet or the DTF cost calculator and see whether your price per shirt still covers it.
4. Raise prices once, not twice. Many shops also face 2027 carrier rate increases in January. One price update that covers both is easier on customers than two.
5. Look at where hours go. If labor is the pressure point, outsourcing transfers or adding a faster press may matter more than a few cents of wage. The buy a printer or order transfers guide compares the two.

Frequently Asked Questions

Which states raise the minimum wage on January 1, 2027?

Washington, Connecticut, California, Rhode Island, New Jersey, Colorado, Maine, Michigan, Vermont, Virginia, South Dakota, Minnesota, Ohio and Montana raise their rates on Jan. 1, 2027, according to their state labor departments, governors' offices or statutes. Arizona and Nebraska index their rates but had not been confirmed as of Nov. 14, 2026.

What is the highest state minimum wage in 2027?

Washington's $17.73 an hour is the highest statewide rate for 2027, followed by Connecticut at $17.48 and California at $17.40. Some cities, such as Denver at $19.84, set local rates above their state's.

Is the federal minimum wage going up in 2027?

No. The U.S. Department of Labor lists the federal minimum wage at $7.25 an hour. States with no minimum wage of their own, or one below $7.25, follow the federal rate for most employers.

Does New York's minimum wage go up in 2027?

No. New York's Department of Labor says the minimum wage will stay the same on Jan. 1, 2027: $17.00 an hour in New York City, Long Island and Westchester, and $16.00 in the rest of the state.

How much does a minimum wage increase add to the cost of a shirt?

It depends on output. At 30 shirts pressed per paid hour, California's 50-cent increase adds about 2 cents of wages per shirt. At 15 shirts an hour, it adds about 3 cents. Setup, weeding and packing time can add more than pressing time does.

Where this fits in the DTF Database

Labor is one line in a shop's cost per shirt. The DTF transfer pricing guide shows how to build a price from your true costs, and the guide to starting a custom T-shirt business covers costs and markup from the beginning. For other year-end paperwork, the Form 1099-K and Section 179 guide summarizes the IRS numbers for 2026 and 2027.