Maine's Minimum Wage Increases Again for 2026

Preparing for 2026: Maine Minimum Wage, Tipped Wage, and Salary Threshold Updates

As we move into 2026, Maine employers need to be aware of the latest changes to minimum wage, tipped wage, and salary thresholds. These updates are essential for staying compliant with state law and ensuring employees are paid fairly. Below, we’ll walk through what’s changing on January 1, 2026, and then revisit the 2025 and 2024 limits for context.

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Minimum Wage Increase for 2026

Beginning January 1, 2026, Maine’s minimum wage will rise from $14.65 to $15.10 per hour, reflecting a 3.1% increase in the cost of living. This adjustment is based on the Consumer Price Index for the Northeast Region, as required under state law.

This update also applies to agricultural workers in Maine, following a 2025 law signed by Governor Mills that extended the state minimum wage to cover this group.

In 2024, roughly 35,000 Maine workers earned less than $15 per hour. With the new increase, these employees—representing about 9% of Maine’s hourly workforce—will see their pay rise starting in 2026.

*Often, the cities of Portland and Rockland have their own, higher, minimum wages. At this time, those cities have not released their guidance on the 2026 minimum wage for work performed within city limits. Stay tuned for updates.*

Tipped Minimum Wage for 2026

The minimum wage for service employees (tipped workers) will increase to $7.55 per hour. Employers may take a tip credit of up to $7.55, provided that the combination of wages and tips brings the employee’s total hourly pay up to at least the state minimum wage of $15.10.

The monthly tip threshold to qualify as a tipped employee will also rise from $185 to $191 per month.

Salary Threshold for Overtime Exemption in 2026

For employees to be considered exempt from overtime pay, they must earn above a certain salary threshold and meet specific job duties under state and federal law.

Starting January 1, 2026, Maine’s salary threshold will increase to $871.16 per week, or $45,300.32 per year.

Keep in mind: meeting the salary threshold alone does not guarantee an exemption from overtime. Employers must also evaluate whether the employee’s duties fall under the executive, administrative, or professional (EAP) exemption tests.

Looking Back: 2025 Updates

In 2025, Maine employers were required to adjust to several wage changes that took effect on January 1, 2025:

• Minimum Wage: Increased from $14.15 to $14.65 per hour.
• Portland and Rockland Minimum Wage: Rose to $15.50 per hour.
• Tipped Wage: Increased to $7.33 statewide and $7.75 in Portland and Rockland.
• Tip Threshold: Increased from $179 to $185 per month.
• Exempt Salary Threshold: Increased to $845.21 per week, or $43,951 annually.

2024 Updates

For reference, here were the limits in place in 2024:

• Minimum Wage: $14.15 per hour.
• Portland and Rockland Minimum Wage: $15.00 per hour.
• Tipped Wage: $7.08 statewide and $7.50 in Portland and Rockland.
• Exempt Salary Threshold: $816.35 per week, or $42,450.20 annually.

Year-by-Year Comparison

When Does Maine’s Minimum Wage Increase?

Under legislation passed in 2016, Maine’s minimum wage automatically adjusts for inflation each year based on the cost-of-living index. These updates always take effect on January 1st, and all employees must be paid at least the new rate starting with the first paycheck of the year.

Preparing for the Changes

To remain compliant in 2026 and beyond, employers should:

• Review payroll systems to reflect the new minimum wage.
• Audit compensation for exempt employees to ensure salaries meet or exceed the new threshold.
• Update labor law posters once the 2026 version is released.
• Train managers and payroll staff to apply the correct tipped wage and track tip thresholds.

Minimum Wage FAQs

When does Maine’s new minimum wage take effect?

Maine law requires that minimum wage be adjusted annually for inflation and go into effect on January 1st of each year. Employers must begin paying the updated rate with the first paycheck in January, regardless of when the pay period started. This means if a pay period overlaps December and January, the hours worked in January must be paid at the new rate to stay compliant.

Does the minimum wage apply to agricultural workers?

Yes. As of 2026, agricultural workers are officially covered by Maine’s state minimum wage. This change came after the Legislature passed a bill in 2025 extending minimum wage protections to farm workers. Employers in agriculture must now update payroll systems and ensure that all workers earn at least the state minimum wage of $15.10 per hour starting January 1, 2026.

How does the tipped wage work in Maine?

Maine allows employers to pay a lower direct wage (the “tipped wage”) to service employees who earn tips, but only if those tips combined with wages bring the employee up to at least the full minimum wage. For 2026, the tipped wage is $7.55 per hour, and the monthly tip threshold is $191. Employers must carefully track tips and make up the difference if an employee’s wages and tips fall short of the $15.10 minimum.

What is the salary threshold for exempt employees in 2026?

Starting January 1, 2026, Maine’s salary threshold for exempt employees increases to $871.16 per week, or $45,300.32 per year. However, salary alone isn’t enough to classify someone as exempt from overtime. Employers must also confirm that the employee’s job duties fit into specific categories—executive, administrative, or professional (EAP). If either the salary level or duties test isn’t met, the employee must be treated as non-exempt and paid overtime for hours worked beyond 40 per week.

What is the minimum wage in Portland and Rockland for 2026?

At this time, Portland and Rockland have not released their guidance on minimum wage within city limits. Over the past several years, these cities have had a higher minimum wage than the rest of the state. We can expect this to be true again for 2026. Stay tuned for updates.

Conclusion

The increase in Maine’s minimum wage, tipped wage, and salary threshold will take effect on January 1, 2026. Employers should start reviewing their payroll and salary structures now to avoid compliance issues, while employees should be aware of their rights under the new rules.

Need help navigating these changes? Our team is here to guide you through payroll updates, compliance, and employee management so you can focus on running your business.