- The Palo Alto minimum wage is $18.70 an hour, effective .
- That is $1.80 above the California state rate of $16.90 and $11.45 above the federal $7.25.
- The next change is : an indexed adjustment, amount to be announced.
- Coverage: Each employee who performs two or more hours of work per week in Palo Alto for a covered employer.
Rates and tiers
| Tier | Rate | Since |
|---|---|---|
| all employers | $18.70 |
Indexing
Yes
Regional CPI (U.S. Department of Labor) adjusts January 1 (annual) announced City of Palo Alto
Tipped
Same as minimum
no tip credit under California law (confirmed: DIR FAQ states an employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage)
Scheduled increases
January 1, 20271 jurisdiction
CityTBA
Palo Alto, CAall employers · indexed-unannounced · Regional CPI adjustment each January
TBAindexed, amount to be announced
Official page: 'Effective January 1, 2026, the minimum wage rate for the City of Palo Alto is $18.70 per hour.' Matches Berkeley inventory.
Common questions
What is the Palo Alto minimum wage?
$18.70 an hour for all employers, effective January 1, 2026.
Is the Palo Alto minimum wage higher than the California state minimum wage?
Yes, by $1.80: $18.70 versus $16.90.
When does the Palo Alto minimum wage change next?
On January 1, 2027, by an indexed amount to be announced.
Sources
- https://www.paloalto.gov/Business/Minimum-Wage official
- https://laborcenter.berkeley.edu/inventory-of-us-city-and-county-minimum-wage-ordinances/
Checked 2026-09-02; researcher confidence 0.97.