2027 Payroll & Tax Compliance Changes: What’s Confirmed So Far
Some of next year’s numbers are already locked in. Others won’t be official until Q4 2026. Here’s exactly which is which.
Every year, a batch of payroll-relevant numbers resets on January 1: minimum wage, tax brackets, retirement contribution limits, benefits thresholds. Most of them aren’t finalized until the last few months of the prior year, which makes “get ready for next year” advice tricky to trust if it doesn’t say plainly what’s confirmed and what’s still a projection.
This page tracks both, clearly labeled, and gets updated as the real numbers land.
Confirmed for 2027
- California minimum wage rises to $17.40/hour, effective January 1, 2027. Its exempt salary threshold (2x minimum wage x 2,080 hours) rises to $72,384/year the same date, up from $70,304.
- ACA affordability percentage rises to 10.22% (IRS Revenue Procedure 2026-26) for plan years starting in 2027, up from 9.96% in 2026, the highest since the ACA’s inception. This gives employers a bit more room when pricing their lowest-cost health plan.
- HSA contribution limits for 2027 (IRS Revenue Procedure 2026-24): $4,500 self-only, $9,000 family, plus a $1,000 catch-up for age 55 and up.
- Michigan minimum wage rises to $15.00/hour, effective January 1, 2027.
- Colorado’s statewide minimum wage rises to $15.71/hour, effective January 1, 2027, up from $15.16.
- Washington’s minimum wage rises to $17.73/hour, effective January 1, 2027, up from $17.13. Its exempt salary threshold moves to a new two-tier structure the same date: employers with 51 or more employees must pay exempt staff at least 2.5 times minimum wage ($92,196/year), and employers with 50 or fewer at least 2.25 times ($82,976/year). Both are up from $80,168 in 2026.
- Alaska minimum wage rises to $15.00/hour, effective July 1, 2027, not January 1. It’s the final step of a schedule voters approved in 2024.
- Federal income tax brackets stay at the same 7 rates (10%, 12%, 22%, 24%, 32%, 35%, 37%), made permanent under the One Big Beautiful Bill Act. Only the income thresholds between brackets shift slightly for inflation, and those exact thresholds aren’t published yet.
- Maryland’s new paid family and medical leave program begins payroll contributions January 1, 2027 (0.9% total, split 0.45%/0.45% employer/employee, up to the Social Security wage cap). Employers with fewer than 15 employees are exempt from the employer share. Benefits themselves don’t start until January 2028.
- Delaware’s pay transparency law takes effect September 26, 2027, requiring employers with 26 or more Delaware employees to disclose pay ranges in job postings (penalties $500 to $10,000).
- Local minimum wage increases confirmed for January 1, 2027: City of Boulder, CO to $18.17/hour; unincorporated Boulder County, CO (a separate jurisdiction) to about $17.32/hour; Edgewater, CO to $19.84/hour (capped by a July 2026 city council vote to match Denver, not the higher $19.99 originally planned); Denver, CO to $19.84/hour; Santa Fe, NM to $17.50/hour.
Expected but not yet official (watch these)
- 16 states adjust their minimum wage on an inflation formula (Arizona, California, Colorado, Connecticut, Maine, Minnesota, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, South Dakota, Vermont, Virginia, Washington). California, Colorado, and Washington have published their 2027 rates (see above). For the rest, exact 2027 dollar figures haven’t been officially published yet as of this writing and typically land in the fourth quarter of the prior year. Oregon adjusts on July 1 rather than January 1.
- Social Security wage base for 2027 is projected around $190,200 (up from $184,500 in 2026), per the Social Security Trustees’ own 2026 annual report, corroborated by PayrollOrg. The Social Security Administration typically confirms the actual figure in mid-October.
- 401(k), 403(b), and 457 contribution limits for 2027 are projected to rise to roughly $25,500, per actuarial firm Milliman’s forecast, with a projected catch-up limit increase for ages 60 to 63 to around $11,750. The IRS typically announces official retirement plan limits in October or November, following September inflation data.
- The IRS hasn’t announced the 2027 standard mileage rate yet. It typically comes out in December. 2026’s rate had an unusual mid-year increase, so it’s not yet clear how 2027 will open.
Why this list looks different from other “2027 changes” roundups
A lot of year-ahead compliance content presents projected numbers as if they’re already locked in, because a confident-sounding list reads better than a hedged one. The problem is a business that plans a budget or a policy around a number that turns out to be wrong ends up worse off than if it had waited for the real figure. This page draws the line on purpose.
This page is general information, not legal or tax advice. Reverify all figures against official sources before using them for compliance decisions. It will be updated once Q4 2026 official announcements land.
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Common questions
What minimum wage changes are confirmed for 2027?
California is confirmed to rise to $17.40/hour and Michigan to $15.00/hour, both effective January 1, 2027. Colorado ($15.71/hour) and Washington ($17.73/hour) are also confirmed for January 1, 2027, and Alaska rises to $15.00/hour on July 1, 2027. Several cities have confirmed local increases too, including Denver and Edgewater, CO (both $19.84/hour) and Santa Fe, NM ($17.50/hour). Many other states adjust annually but haven’t published their exact 2027 figures yet.
What is the 2027 ACA affordability percentage?
10.22%, confirmed by the IRS, up from 9.96% in 2026.
Are the 2027 401(k) and Social Security limits official yet?
Not as of this writing. They’re widely projected (401(k) around $25,500, Social Security wage base around $190,200) based on inflation data, but the IRS and Social Security Administration typically don’t confirm official figures until October through December of the prior year.
When will the rest of the 2027 numbers be confirmed?
Most federal figures (IRS retirement limits, Social Security wage base, mileage rate) come out in the fourth quarter of 2026. State minimum wage and exempt salary thresholds are typically published by each state’s labor department around the same time.
Related reading: the Year-End Payroll & Tax Season Guide, the Year-End Payroll Checklist, Multi-State Year-End Compliance, and W-2 & 1099 Reporting Basics.
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