(The Center Square) – Much to the chagrin of some employers in the city, Seattle’s minimum wage is set to increase to $21.30 per hour on Jan. 1, 2026, the Seattle Office Labor Standards announced on Tuesday. The new rate, based on the Seattle-Tacoma-Bellevue Area Consumer Price Index, applies to all employers in the city.
The $21.30 minimum wage in 2026 is 2.6% more than the city’s current rate of $20.76 per hour, which is already among the highest in the state.
In a statement on Wednesday, Seattle Mayor Bruce Harrell said the minimum wage increase showcases the city’s continuing commitment to “building a city where all workers are treated with the respect and dignity that they deserve.”
Washington Hospitality Association President and CEO Anthony Anton doesn’t share Harrell’s optimistic appraisal of the Emerald City’s impending minimum wage hike.
Seattle restaurants are already being squeezed from all sides, he said, even before the minimum wage increase announcement, as operation costs are up and the city continues to add pressure.
“Normally when costs go up, you dip into your margins. Well, Washington has one of the lowest profit margins in the country, down to 1.5%,” Anton told The Center Square in a phone call. “So, for a $1 million restaurant, you’re making about $16,000 a year.”
This year, Seattle raised its minimum wage by more than $3 and eliminated the option for employers to use a $2.72 per hour tip or medical benefits credit.
In response, many Seattle restaurants added fees to make up for increased labor costs. Anton said the higher prices led to more customers holding back from purchasing at Seattle businesses.
“We have really felt that pushback in 2024 and 2025 of customers saying, ‘I can’t believe what it costs a family of three or four to go out anymore,’” Anton said. “And yet the operators are making less money than ever and are charging more than ever.”
In Tukwila, the highest minimum wage rate for 2026 will be $21.65 per hour. However, some businesses are exempt and must pay the statewide minimum wage of $17.13 per hour, effective beginning next year.
Seattle Office of Labor Standards Director Steven Marchese said his office will “continue to offer support to help businesses prepare for the increase so they can continue to pay their employees accurately and ensure workplace rights are upheld.”
