Colorado Minimum Wage 2027: State and Local Rate Guide

Colorado’s statewide minimum wage will increase to $15.71 per hour on January 1, 2027. This is a $0.55 increase from the 2026 rate of $15.16 per hour. The statewide tipped minimum wage will increase to $12.69 per hour.

Employers with workers in Denver, Boulder, Edgewater, or unincorporated Boulder County may be subject to a higher local minimum wage. When a local rate is higher than the state minimum and the work is covered by the local ordinance, the local rate applies.

StaffScapes, Colorado’s longest-standing privately owned PEO, has compiled the confirmed 2027 Colorado minimum wage rates and the key steps employers should take before the new rates become effective.

What Are Colorado’s Minimum Wage Rates for 2027?

Confirmed 2027 minimum wage rates range from $15.71 per hour statewide to $19.99 per hour in Edgewater. Employers operating in multiple jurisdictions must track and apply the correct rate for each employee’s work location.

• Colorado statewide: $15.71 per hour in 2027, up from $15.16 in 2026. This is an increase of $0.55, or approximately 3.6%.
• Denver: $19.84 per hour in 2027, up from $19.29 in 2026. This is an increase of $0.55, or approximately 2.9%.
• City of Boulder: $18.17 per hour in 2027, up from $16.82 in 2026. This is an increase of $1.35, or approximately 8%.
• Edgewater: $19.99 per hour in 2027, up from $18.17 in 2026. This is an increase of $1.82, or approximately 10%.
• Unincorporated Boulder County: The 2026 rate is $16.82 per hour. Boulder County currently lists $17.32 as an estimate for 2027 based on an assumed 3% Consumer Price Index increase, but the final rate has not yet been confirmed.

The governing rule is straightforward: employers must apply the higher local minimum wage when an employee’s work is covered by a local wage ordinance. The statewide rate of $15.71 is the minimum floor, not a universal rate for every Colorado employee.

What Is Colorado’s Tipped Minimum Wage in 2027?

Colorado’s statewide tipped minimum wage will be $12.69 per hour in 2027. This is $3.02 below the statewide standard minimum wage of $15.71 per hour.

Employers must ensure that each tipped employee’s base wage and qualifying tips equal or exceed the full minimum wage for all hours worked. If tips do not cover the difference, the employer is responsible for making up the shortfall.

Local minimum wage requirements also affect tipped employees. Employers in Denver, Boulder, Edgewater, and unincorporated Boulder County should verify the applicable local tipped wage and tip credit before processing their first 2027 payroll.

Accurate tip-credit calculations require payroll systems that can apply the correct wage rules by jurisdiction. StaffScapes’ Colorado payroll administration services help employers manage payroll processing, filing, reporting, and state reporting requirements.

Which Colorado Jurisdiction Has the Largest 2027 Increase?

Edgewater has the largest confirmed percentage increase for 2027. Its minimum wage will rise from $18.17 to $19.99 per hour, an increase of approximately 10%.

Boulder has the next-largest increase. Its rate will rise approximately 8%, from $16.82 to $18.17 per hour. Both increases are significantly higher than Colorado’s statewide increase of approximately 3.6% and Denver’s increase of approximately 2.9%.

These local increases can create a more significant payroll impact than the statewide adjustment suggests. Employers should review labor budgets by jurisdiction rather than applying one percentage increase across the organization.

How Much Has Colorado’s Minimum Wage Increased Since 2019?

Colorado’s statewide minimum wage has increased from $11.10 per hour in 2019 to $15.71 per hour in 2027. That represents a 41.5% cumulative increase over eight years.

For employers with multiple full-time minimum-wage employees, this trend represents a structural change in baseline labor costs rather than a one-time adjustment.

Annual minimum wage increases should be treated as a recurring budget and compensation-planning event. Employers that plan for these adjustments can avoid reactive payroll changes at the end of the year.

What Should Colorado Employers Do Before January 1, 2027?

1. Identify the applicable rate for every employee. Determine where each employee performs work and whether a state or local minimum wage applies.
2. Update payroll systems before December 31, 2026. The new rates take effect January 1, 2027. Delayed updates can create underpayment liability beginning with the first hours worked in the new year.
3. Post updated wage notices. Replace outdated workplace notices when the 2027 materials become available. Colorado typically releases updated posting materials during the fourth quarter.
4. Review tipped employee wages. Confirm that base wages, tips, and any permitted tip credits satisfy the applicable state or local minimum wage.
5. Monitor pending local rates. Employers in unincorporated Boulder County should watch for the final 2027 rate. Edgewater employers with tipped workers should also monitor the city’s final 2027 tipped wage and tip-credit guidance.
6. Review offer letters and compensation bands. Address wage compression if the higher minimum wage narrows the difference between entry-level and experienced employees.

Payroll configurations, workplace postings, and tipped-wage calculations should all be updated before the new rates take effect on January 1, 2027.

Frequently Asked Questions About Colorado’s 2027 Minimum Wage

What is Colorado’s minimum wage in 2027?

Colorado’s statewide minimum wage will be $15.71 per hour beginning January 1, 2027. This is an increase of $0.55 from the 2026 rate of $15.16 per hour.

What is Denver’s minimum wage in 2027?

Denver’s minimum wage will be $19.84 per hour in 2027, up from $19.29 in 2026. The Denver rate applies when work is covered by the city’s minimum wage ordinance and supersedes the lower statewide rate.

What are the Boulder and Edgewater minimum wages in 2027?

The City of Boulder’s 2027 minimum wage will be $18.17 per hour. Edgewater’s minimum wage will be $19.99 per hour. Both rates are higher than Colorado’s statewide minimum wage of $15.71.

What is Colorado’s tipped minimum wage in 2027?

Colorado’s statewide tipped minimum wage will be $12.69 per hour in 2027. Employers must make up any shortfall if an employee’s base wage and qualifying tips do not equal the applicable full minimum wage.

When do Colorado’s 2027 minimum wage rates take effect?

The confirmed statewide, Denver, Boulder, and Edgewater minimum wage rates take effect January 1, 2027. Employers should complete payroll updates, wage-notice replacements, and tipped-wage reviews before the end of 2026.

Prepare Your Payroll and HR Processes for 2027

StaffScapes helps small and midsize Colorado businesses manage payroll, HR, and employment compliance so internal leaders can remain focused on growth.

If you have questions about how the 2027 minimum wage changes affect your business, explore StaffScapes’ HR compliance and mitigation services.