Palo Alto minimum wage

Minimum wage in Palo Alto, California, in effect since January 1, 2026

$18.70 an hour

Palo Alto sets its own minimum wage, $1.80 above the California rate of $16.90. Employers in Palo Alto pay the higher local rate.

Next increase: $19.25 on January 1, 2027.

Standard rate
$18.70
since January 1, 2026
Tipped cash wage
$18.70
No tip credit allowed
Next change
$19.25
January 1, 2027
Federal minimum
$7.25
unchanged since 2009

Tipped employees

Palo Alto doesn't allow a tip credit. Tipped employees must get the full $18.70 an hour from the employer, and tips are on top.

Scheduled increases

Effective dateStandard rateTipped cash wageStatus
January 1, 2026 (current)$18.70$18.70In effect
January 1, 2027$19.25$19.25Announced

How future increases are set

Adjusted each January 1 by the Bay Area Consumer Price Index.

Other local minimum wages in California

Running payroll in Palo Alto?

Recent changes

Last verified against the official source on October 9, 2026.

No changes recorded since we started tracking this page.

All recent changes · RSS

Sources

We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.