Starting January 1, 2027, Ohio's minimum wage is $11.40 per hour for non-tipped employees and $5.70 per hour for tipped employees. It applies to businesses with annual gross receipts of more than $420,000. Smaller businesses and 14- and 15-year-old workers stay at the federal $7.25.
In This Guide
What changes on January 1, 2027
The Ohio Department of Commerce announced the new rates on September 30, 2026. The non-tipped rate goes from $11 to $11.40, a raise of $0.40 an hour. The tipped rate goes from $5.50 to $5.70, a raise of $0.20. The state calls both a 3.5% increase. You can read the full announcement from the Ohio Department of Commerce.
| Rate | 2026 | 2027 |
|---|---|---|
| Non-tipped employees | $11 | $11.40 |
| Tipped employees | $5.50 | $5.70 |
| Gross receipts threshold | $405,000 | more than $420,000 |
| Smaller businesses and 14- and 15-year-olds | $7.25 | $7.25 |
The increase is automatic. A 2006 amendment to the Ohio Constitution ties the rate to inflation. Each January 1 it rises by the change in the CPI-W for the 12 months ending in August. For 2027 that change was 3.5%.
Who must pay $11.40
The Ohio rate applies to businesses with annual gross receipts of more than $420,000. That threshold also moves. In 2026 it is $405,000.
If your business has annual gross receipts of $420,000 or less, the state minimum wage is tied to the federal minimum of $7.25 an hour. The same $7.25 floor applies to 14- and 15-year-old workers. Changing the federal rate would take an act of Congress and the President's signature.
Look at your gross receipts before the first payroll of 2027. A business that grew past the threshold this year moves to the higher rate. If you are close to the line, keep the records that support your figure. A wage claim will turn on that number.
Tipped employees
Ohio lets covered employers pay tipped employees a lower cash wage. In 2027 that cash wage is $5.70 an hour. The lower wage only works when tips bring the employee up to the full $11.40 for the hours worked. When tips fall short, the employer pays the difference.
Update the tipped rate in your payroll system at the same time as the regular rate. These two rates often live in different places, such as a pay code for servers and a default rate for everyone else. Missing one of them is a common error.
Pay periods that cross January 1
The new rate applies to hours worked on or after January 1, 2027. It does not depend on the pay date. If a pay period starts in December and ends in January, split the hours. Pay the December hours at the 2026 rate and the January hours at $11.40.
Paying the whole period at the new rate is also allowed, and it is simpler. Paying the January hours at the old rate is not.
What to do before January 1
- Raise every covered non-tipped employee below $11.40 and every tipped cash wage below $5.70. Apply the new rates to hours worked on or after January 1, 2027. A pay period that spans the date may need two rates.
- Post the new poster. Ohio requires employers to display the official 2027 Minimum Wage poster. The Division of Industrial Compliance publishes it on its website.
- Confirm your gross receipts against the $420,000 threshold.
- Check overtime. Overtime is based on the regular rate, so it goes up for anyone whose base rate goes up.
- Check salaried exempt staff. The Ohio announcement does not set a salary threshold for exempt employees. Confirm each exempt employee still meets the federal salary and duties tests.
- Budget for the raise. Multiply each affected employee's raise by the hours you expect them to work in 2027, then add payroll taxes on top.
For the rates in effect through December 31, 2026, see our Ohio minimum wage 2026 guide. For withholding and filing rules, see the Ohio payroll compliance guide.
Frequently Asked Questions
What is the Ohio minimum wage in 2027?
Starting January 1, 2027, Ohio's minimum wage is $11.40 per hour for non-tipped employees and $5.70 per hour for tipped employees at businesses with annual gross receipts of more than $420,000.
How much is the 2027 increase in Ohio?
The non-tipped rate rises $0.40, from $11 to $11.40. The tipped rate rises $0.20, from $5.50 to $5.70. The state describes it as a 3.5% increase.
Do small businesses in Ohio have to pay $11.40?
No. For businesses with annual gross receipts of $420,000 or less, the state minimum wage is tied to the federal minimum wage of $7.25 per hour.
What is the minimum wage for 14- and 15-year-olds in Ohio?
For 14- and 15-year-old workers, the Ohio minimum wage remains tied to the federal minimum wage of $7.25 per hour.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of October 2026 and may not reflect recent changes in federal or Ohio state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Ohio law before making payroll or compliance decisions for your business.