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If you are working a minimum wage job, the amount you get paid can vary from state to state. While the federal rate is $7.25 per hour, some cities are offering more than $20 an hour. Here is a list of those spots, along with areas where minimum wage amounts have recently increased.
Key Takeaways
- Certain areas of California and Washington offer a minimum wage of over $20 an hour.
- Minimum wages increased on July 1, 2025 across several U.S. states and cities.
- These increases vary by location and industry, with higher wages often limited to specific sectors like hospitality or healthcare.
- Although $20 per hour offers more financial stability than the federal minimum of $7.25, its value depends heavily on the local cost of living.
States and Cities Where the Minimum Wage Exceeds $20
It’s not just one or two places; some towns are well ahead of federal standards, and almost all are in Washington:
Note
These higher wages often apply only to certain sectors or employers meeting specific criteria, such as company size or industry.
Los Angeles, CA
$22.50 per hour for hotel workers.
Santa Monica, CA
$22.50 per hour for hotel workers.
Burien, WA
$21.16 per hour for employers with more than 500 employees and $20.16 per hour for employers with 21-499 employees.
Tukwila, WA
$21.10 per hour for employers with more than 500 employees and employers with 15-500 employees or more than $2 million of annual gross revenue.
Renton, WA
$20.90 per hour for employers with 501 or more employees and $19.90 for employers with 15-500 employees.
Seattle, WA
$20.76 per hour.
King County (unincorporated areas), WA
$20.29 per hour for employers with more than 500 employees.
SeaTac, WA
$20.17 per hour for employers in the hospitality and transportation industries.
Areas with Recent Minimum Wage Increases
Several states and cities have taken independent actions to raise their minimum wages. Effective July 1st, 2025, these states saw an increase in minimum wage.
Alaska: Wages rose to $13 per hour from $11.91.
Oregon: Wages rose to $14.05 in non-urban areas from originally $13.70, $16.30 in the Portland metro area from originally $15.95, and $15.05 in the rest of the state from originally $14.70.
District of Columbia: Wages rose from $17.50 to $17.95.
What Does Earning $20 an Hour Really Mean?
Someone who earns $20 per hour and works 40 hours per week for all 52 weeks of the year would, in theory, earn $41,600 before taxes. Let’s break down the numbers:
$20 per hour for a 40-hour week is ~$800/week, translating to ~$3,467/month.
These numbers represent gross income earnings before deductions for federal and state income tax, Social Security, and insurance.
If we estimate that the federal income tax is 12%, this annual income could be reduced by around $4,992, thus becoming $36,608/year. While the $36,608/year total offers a more accurate picture since it reflects a rough idea of the post-federal income tax amount, the actual take-home pay would likely be lower once other deductions are incorporated.
With this rough income amount in mind, how far your money goes depends heavily on where you live. For example, in Tukwila, Washington, your earnings are likely to stretch further than in nearby Seattle, where the cost of living is significantly higher. As of July 2025, the average rent for a one-bedroom in Tukwila is $1,472, compared to $2,138 in Seattle.
The Bottom Line
A $20 minimum wage is significant when compared with the federal wage of $7.25. However, how far that income goes still depends on local living costs. While it’s a step forward, understanding the real-world impact of these wages is essential for financial planning.
