The minimum wage in Colorado is $15.16 an hour as of October 2026, with $12.14 for tipped employees. The Colorado Department of Labor and Employment has announced the state rate rises to $15.71 an hour in 2027, and $12.69 for tipped workers.
I've taken this from the Colorado Department of Labor and Employment's minimum wage page, its 2027 rate announcement and the U.S. Department of Labor's tables, all read in October 2026. The detail that changes payroll in Colorado is local: cities like Denver set their own higher rates, and Denver measures inflation differently from the state.
Colorado's rates now and next year
| Worker | 2026 (as of October 2026) | 2027 (announced) |
|---|---|---|
| Standard minimum wage | $15.16 | $15.71 |
| Tipped employees, cash wage | $12.14 | $12.69 |
| Maximum tip credit | $3.02 | Not stated in the release |
The state says $15.71 is a 3.6% increase on the current $15.16, and a 41.5% increase on the 2019 rate of $11.10. Tipped staff are anyone who customarily gets more than $30 a month in tips, according to the U.S. Department of Labor's table.
Tipped staff in Colorado
Colorado's tip credit is small. The U.S. Department of Labor's table puts the maximum credit at $3.02, which is why the tipped cash wage, $12.14, sits so close to the full rate. Anyone who customarily gets more than $30 a month in tips counts as tipped. If cash wage plus tips for the period falls short of $15.16 an hour, the employer pays the difference, and from 2027 the same check runs against $15.71. Compared with most of the country, a Colorado server's paycheque before tips is unusually large.
Why Colorado changes every January
Colorado's constitution requires the minimum wage to be adjusted for inflation every year. The state uses the Consumer Price Index for All Urban Consumers, published by the federal Bureau of Labor Statistics. Here's the insight most pages miss: the City and County of Denver uses a different index, the CPI for Urban Wage Earners and Clerical Workers, which tracks a narrower group of hourly and clerical households. That's one reason Denver's rate moves differently from the state's.
The state's release spells out the difference. The CPI for All Urban Consumers is based on a sample that represents more than 90% of the U.S. population, while the wage earner index focuses on urban households whose main income comes from hourly wages or clerical work, roughly 30% of the population. Two indexes, two different yearly rises, and an employer with staff on both sides of the Denver line has to track both.
Denver and other local rates
Denver has announced its 2027 local minimum wage will be $19.84 an hour. Other localities set their own rates by local ordinance, and the state publishes the current list of local rates with tip credits on its Division of Labor Standards and Statistics pages. If you employ people inside a city with its own ordinance, you pay the higher local rate, not the state's.
- Find the exact work address for each employee.
- Check whether that city or county has its own minimum wage ordinance.
- Pay the highest of the federal, state or local rate that applies.
- Recheck every January, because the state and local rates both change.
- Update your posters and pay rates on the effective date, not at the next review.
Overtime: the 12-hour rule
Colorado is one of the few states with daily overtime. The U.S. Department of Labor's table lists premium pay after 12 hours in a day and after 40 hours in a week for the industries covered by the state's minimum wage order. A worker who does three 13-hour shifts has 39 hours for the week but still earns overtime for the extra hour each day. My overtime laws guide compares the states that have daily overtime.
Your January 2027 checklist
- Raise every Colorado hourly rate below $15.71 on the first payroll that includes 1 January 2027.
- Move tipped cash wages to at least $12.69.
- Check Denver and any other local ordinance for its own 2027 rate.
- Swap your workplace posters for the new year's versions.
- Rerun overtime checks on any rota with shifts over 12 hours.
Colorado's climb since 2021
| Year (1 January) | Colorado rate |
|---|---|
| 2019 | $11.10 |
| 2021 | $12.32 |
| 2022 | $12.56 |
| 2023 | $13.65 |
| 2024 | $14.42 |
| 2026 (as of October 2026) | $15.16 |
| 2027 (announced) | $15.71 |
The 2019 figure is from the state's own announcement, and 2021 to 2024 are from the U.S. Department of Labor's history table. The steady climb is the inflation formula at work.
Colorado against its neighbours
| State | Minimum wage (as of October 2026) | Tipped cash wage |
|---|---|---|
| Colorado | $15.16 | $12.14 |
| Arizona | $15.15 | $12.15 |
| Nebraska | $15.00 | $2.13 |
| New Mexico | $12.00 | $3.00 |
| Utah | $7.25 | $2.13 |
| Kansas | $7.25 | $2.13 |
| Wyoming | $5.15 state, federal $7.25 for covered jobs | $2.13 |
Colorado and Arizona are within a cent of each other, while Utah, Kansas and Wyoming sit at or near the federal floor. If you hire remotely, the rule is the work location, so a Utah employee on a Denver company's payroll is paid Utah's rate and a Denver employee is paid Denver's.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
My verdict
Colorado is a high-wage state that keeps moving. Budget for $15.71 from January 2027, $12.69 for tipped staff, and a higher local rate wherever Denver or another city has its own ordinance. The daily 12-hour overtime rule is the one that catches long-shift businesses, so check rotas before you assume a week under 40 hours means no premium. For other states' rates, see my federal minimum wage guide.
Frequently asked questions
What is the minimum wage in Colorado?
It's $15.16 an hour as of October 2026, and $12.14 for tipped employees.
What will Colorado's minimum wage be in 2027?
The state has announced $15.71 an hour for 2027, and $12.69 for tipped workers.
What is Denver's minimum wage for 2027?
Denver has announced a 2027 local minimum wage of $19.84 an hour.
Why does Colorado's minimum wage go up every year?
The state constitution requires an annual inflation adjustment using the Consumer Price Index for All Urban Consumers.
Does Colorado have daily overtime?
Yes. Covered employees get premium pay after 12 hours in a day as well as after 40 hours in a week.
Who counts as a tipped employee in Colorado?
Someone who customarily receives more than $30 a month in tips.
Is the minimum wage the same everywhere in Colorado?
No. The state rate is the floor, but Denver and other localities with their own ordinances set higher local rates.
