Chicago minimum wage 2026
The minimum wage in Chicago is $17.05 an hour in 2026, $2.05 above the Illinois rate of $15.00. Chicago's rate changes every July 1, not January 1, rising with inflation but by no more than 2.5% a year. It applies to employers with four or more employees, and to every employer of a domestic worker; tipped workers have a separate, lower cash wage.
Contents11 sections
At a glance
| Minimum wage now | $17.05 an hour, since July 1, 202612 |
|---|---|
| Next change | The next rate has not been announced yet. |
| Tipped employees | $12.96 cash wage, tip credit up to $4.091234 |
| Full-time pay | $682 a week, $35,464 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | City of Chicago Department of Business Affairs and Consumer Protection - Office of Labor Standards, (312) 744-2211 |
What to know about the Chicago minimum wage
Chicago's minimum wage is set by Chapter 6-105 of the Municipal Code and runs on a July calendar. Each July 1 the rate rises by the change in the Consumer Price Index or 2.5%, whichever is lower, and it cannot fall. The rate was $16.60 from July 1, 2025 and $17.05 from July 1, 2026.31
Coverage turns on two thresholds. A worker is covered after at least two hours of work in the city in any two-week period, and the employer must have four or more employees, except that domestic workers are covered by employers of any size.3 Under the ordinance's schedule, the slightly lower rate for workers under 18 and subsidized youth programs ($16.50 in 2025-26) rose to the full rate on July 1, 2026, so youth workers receive at least $17.05 from that date.2
Tipped workers have their own schedule. A 2023 ordinance began phasing out the tipped subminimum wage, and an amendment adopted on May 20, 2026 slowed it down.4 The tipped cash wage stays at 76% of the standard rate through June 30, 2028: $12.62 from July 1, 2025 and $12.96 from July 1, 2026.2 For employers with 21 or more employees it then rises to 84% on July 1, 2028 and 92% on July 1, 2029, and the separate tipped wage ends on July 1, 2030. Employers with 4 to 20 employees stay at 76% until June 30, 2030 and reach the full rate on July 1, 2033.4
Chicago's rate applies instead of Cook County's, which is $15.40 from July 1, 2026 for the county's other covered areas.6 The Office of Labor Standards in the Department of Business Affairs and Consumer Protection enforces the law; complaints can be made through 311.1
All 2026 rates
From July 1, 2026 the standard rate of $17.05 also applies to workers under 18 and to subsidized youth and transitional employment programs, which until then had a slightly lower rate.
Businesses holding City of Chicago contracts or concession agreements owe a higher minimum of $18.50 from July 1, 2026.
| Rate | Applies to | Per hour |
|---|---|---|
| Employers with four or more employees | Employers with four or more employees, and all employers of domestic workers; since July 1, 2026 also youth and subsidized program workers | $17.0512 |
| City contracts and concession agreements | Minimum wage under City of Chicago contracts and concession agreements from July 1, 2026 | $18.501 |
Compared with Illinois
When a local minimum wage, the state minimum wage and the federal minimum wage differ, the employer must pay the highest one that applies to the work. For most covered work in Chicago, that is the local rate.
| Minimum wage | Next change | Per hour now |
|---|---|---|
| Chicago | Due July 1, 2027, amount not announced | $17.05 |
| Illinois (state) | None scheduled | $15.00 |
| Federal | None scheduled | $7.25 |
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $12.96 an hour1234 |
| Maximum tip credit | $4.09 an hour |
Employers with four or more employees may pay tipped workers a cash wage of $12.96 from July 1, 2026, 76% of the standard rate. Under the 2026 amendment the tipped wage ends on July 1, 2030 for employers with 21 or more employees and on July 1, 2033 for employers with 4 to 20.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
How the rate changes
Each July 1 the rate rises by the change in the Consumer Price Index or 2.5%, whichever is lower, and it never decreases. The city announces the new rate in the spring.
Rate history
Who is covered
Anyone who works at least two hours in any two-week period within Chicago for an employer with four or more employees. Domestic workers are covered whatever the size of the employer. Employers with fewer than four employees follow other applicable minimum wage law.
- Employers must post the Chicago Labor Laws public notice and give a copy to covered employees with their first paycheck and every year with a paycheck within 30 days of July 1.
- Complaints can be filed through 311, the CHI 311 app or the Office of Labor Standards online form, or by email at [email protected].
- The same chapter of the Municipal Code, 6-105, also requires paid leave and paid sick leave, and Chicago has Fair Workweek scheduling rules for covered industries.
Other local rates in Illinois
- Cook County$15.40
Everywhere else in Illinois, the state rate applies.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | City of Chicago Department of Business Affairs and Consumer Protection - Office of Labor Standards |
|---|---|
| Phone | (312) 744-2211 |
| The law | Chicago Municipal Code Chapter 6-105 (Minimum Wage and Paid Leave) and Minimum Wage Rules; Municipal Code of Chicago 6-105-030 (tipped wage, amended 2023 and 2026) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
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- 6 Cook County Commission on Human Rights, Minimum Wage Ordinance and Regulations Checked Oct 9, 2026 · Back to text ↑
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