{"id":2530073,"date":"2026-01-05T15:00:02","date_gmt":"2026-01-05T20:00:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/minimum-wage-hike-gas-tax-increase-take-effect-in-michigan\/"},"modified":"2026-01-05T15:04:02","modified_gmt":"2026-01-05T20:04:02","slug":"minimum-wage-hike-gas-tax-increase-take-effect-in-michigan","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/minimum-wage-hike-gas-tax-increase-take-effect-in-michigan\/","title":{"rendered":"Minimum wage hike, gas tax increase take effect in Michigan"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">20<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fminimum-wage-hike-gas-tax-increase-take-effect-in-michigan%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2530073&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>Michigan&#8217;s minimum wage rose to $13.73 per hour at the start of the year &#8211; more than $1 higher than last year &#8211; while the federal minimum remains $7.25 (unchanged since 2009). The state was one of 23 to increase wages in 2026 after contentious legislative and court battles. Tipped workers&#8217; minimum is set at 40% of the full rate, or $5.49 per hour, and a temporary tax exemption on tipped wages and overtime (through the 2028 tax year) is expected to save some workers up to about $1,500 annually. Several tax changes also took effect: the state gas tax rose from $0.31 to $0.52 per gallon (with the 6% sales tax on gasoline removed), expected to generate roughly $1.8 billion for roads, and a new <a href=\"https:\/\/amzn.to\/3YuVZYV\" >24% wholesale marijuana excise tax<\/a> (on top of existing 10% excise and 6% sales taxes) is projected to raise about $420 million for road funding. Nationally,Michigan&#8217;s wage sits near the middle of state rates,with D.C. highest at $17.95 and some states still below the federal minimum.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">Minimum wage hike, <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/rep-biggs-joe-bidens-plans-to-raise-gas-taxes-will-hurt-americans\/\" title=\"Rep. Biggs: Joe Biden\u2019s plans to ... gas ...es will hurt Americans\">gas tax increase<\/a> take effect in Michigan<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2463895\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>(The Center Square)&nbsp;&ndash; Starting in the new year, the<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/minimum-wage\/\"> minimum wage<\/a> in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/michigan\/\">Michigan<\/a> is now $13.73 per hour. That is up more than $1 over last year&rsquo;s minimum wage.<\/p>\n<p>Nationally, the federal minimum wage remained at $7.25 per hour. The most-recent adjustment of that wage was in 2009, making this the longest period of Congress not updating the federal minimum wage since it was first enacted in 1938.<\/p>\n<div class=\"recommended-stories\">\n<h2>Recommended Stories<\/h2>\n<ul>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4407088\/traditional-transportation-energy-prices-down\/\">Traditional transportation energy prices down to $2.61<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/4407087\/two-arrested-after-cocaine-seizure-indiana\/\">Two arrested after $7M cocaine seizure in Indiana<\/a><\/li>\n<li><a href=\"https:\/\/www.washingtonexaminer.com\/news\/campaigns\/congressional\/4406935\/mike-collins-jon-ossoff-new-ad-georgia-gop-primary\/\">Mike Collins zeroes in on Ossoff early in ad rollout despite GOP primary fight<\/a><\/li>\n<\/ul>\n<\/div>\n<div class=\"article-paywall\">\n<p>In 2026, Michigan was one of 23 states that saw an increase in its minimum wage. That increase came only&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.thecentersquare.com\/michigan\/article_b5547784-f081-11ef-84b8-27654817d226.html\">after great turmoil<\/a>, both in the state legislature and the courts.<\/p>\n<p>Michigan&rsquo;s wage ranks average nationally, with Washington, D.C. leading the nation at $17.95 per hour and states like Georgia or Oklahoma coming in at even lower than the federal minimum. In those instances, the federal minimum wage takes precedence in most jobs over the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/video-of-how-kyrsten-sinema-voted-against-15-minimum-wage-goes-viral-leftists-erupt-in-anger\/\" title=\"Video Of How Kyrsten Sinema Voted Against  ... Goes Viral, Leftists Erupt In Anger\">state minimum wage<\/a>.<\/p>\n<p>In Michigan, the tipped employee rate of hourly pay is 40% of the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/at-least-5-states-are-contemplating-mandating-full-minimum-wages-for-tip-earners-in-2024\/\" title=\"5 ...s considering requiring full ... for tipped workers by 2024\">full minimum wage<\/a>. That means it increased to $5.49 per hour.<\/p>\n<p>On January 1, no tax on tipped wages and overtime pay also went into effect in Michigan. The deduction will only be available through the 2028 tax year and is expected to save certain tipped workers upwards of $1,500 per year on their state and federal taxes.<\/p>\n<p>A number of&nbsp;<a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.thecentersquare.com\/michigan\/article_1b2035b2-01b2-4cf0-a7c1-918115492cb9.html\">taxes<\/a>&nbsp;also went into effect in Michigan in the new year.<\/p>\n<p>In 2026, consumers will likely notice an increase in <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/economists-bidens-policies-to-lift-oil-and-gas-prices-hurt-u-s-households\/\" title=\"Economists: Biden\u2019s policies to lift oil and gas prices, hurt U.S. households\">gas prices<\/a> as the state gas tax rises from $0.31-per-gallon to $0.52-per-gallon. That increase was passed as a part of the state&rsquo;s budget, though it did also remove a 6% sales tax on gasoline.<\/p>\n<p>That said, the increase is still expected to raise about $1.8 billion for road funding in Michigan.<\/p>\n<p><strong><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/live-blog\/venezuela-trump-maduro-us-court-live-updates\/\">LIVE UPDATES: MADURO CLAIMS HE&rsquo;S A &lsquo;PRISONER OF WAR&rsquo;<\/a><\/strong><\/p>\n<p>Additionally, a new 24% wholesale marijuana excise tax went into effect at the beginning of the year. It will stack on top of a 10% excise tax and 6% sales tax that are already in place.<\/p>\n<p>Despite widespread pushback from the marijuana industry, this tax was passed as part of the state&rsquo;s budget. Legislators anticipate it will raise approximately $420 million for roads.<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Michigan hikes minimum wage, gas tax<\/p>\n","protected":false},"author":2869,"featured_media":2530074,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/12\/AP25029606575234.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[58959,62779,4601,32421,42396],"class_list":["post-2530073","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-cost-of-living-2","tag-gas-tax","tag-michigan","tag-minimum-wage","tag-state-policy"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2025\/12\/AP25029606575234.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530073","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/2869"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2530073"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530073\/revisions"}],"predecessor-version":[{"id":2530077,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2530073\/revisions\/2530077"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2530074"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2530073"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2530073"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2530073"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}