Denver tops the list of U.S. cities where minimum wages go the farthest

A new study examining where the minimum wage reaches the furthest to cover local living costs has ranked Denver as the top U.S. city for minimum wage workers.

The recent study of SmartAsset examined the statutory minimum wages in the 79 largest U.S. cities and adjusted those wages to account for the local cost of living compared to the national average.

Denver, which had the second-highest legal minimum of $17.29 per hour, topped the list despite the city’s relatively high cost of living, with an adjusted hourly minimum of $15.07.

At the other end of the list, Honolulu’s skyrocketing cost of living wiped out most of the city’s $12-an-hour statutory minimum wage, which was worth just $6.47 when adjusted for cost of living.

Denver, which had the second-highest legal minimum of $17.29 per hour, topped the list despite the city’s relatively high cost of living, with an adjusted minimum of $15.07 per hour.

That tied Honolulu with Plano, Texas last on the list. Although the Dallas suburb’s cost of living is 12.1 percent higher than the national average, it has the lowest possible minimum wage: the federal minimum of $7.25.

The study comes amid ongoing debate over the federal minimum wage, which has remained unchanged since 2009 at $7.25 despite high inflation in recent years.

There are 16 states that do not set their own wage demands above the federal minimum. New state minimums went into effect in twenty-three states on January 1.

Three states – Washington, California and Massachusetts – have minimum wages of $15 or higher after the latest round of increases.

Seattle now has the highest minimum wage in the country, $18.69, but ranks 13th on SmartAsset’s new list, due to the exorbitant cost of living dragging the adjusted minimum wage to $12.51.

After Denver, the top five cities on the list include Spokane, Washington; Buffalo, New York; Minneapolis; and St. Louis.

At the other end of the list, Honolulu’s skyrocketing cost of living wiped out most of the city’s minimum wage of $12 per hour, which was worth just $6.47 when adjusted for cost of living

At 85.6% above the national average, Hawaii’s capital has the third highest cost of living

Plano, Texas (above) was last on the list. Although the Dallas suburb’s cost of living is 12.1 percent higher than the national average, it has the lowest possible minimum wage

Spokane does not have its own minimum wage law, but Washington state’s minimum wage increased by $1.25 on Jan. 1 to $15.74 per hour.

Adjusted for the cost of living, which is slightly more than the national average, Spokane’s minimum wage came in second at $15.02.

Buffalo is subject to New York’s statewide minimum wage of $14.20 per hour, but the cost of living in the city is lower than the national average, raising the adjusted minimum to $14.92 per hour.

In Minneapolis, the minimum wage increased to $15.19 on January 1. The cost of living in Minneapolis is only 2.3 percent above the national average, bringing the adjusted minimum to $14.85 per hour.

While the minimum wage of $12 an hour in St. Louis is lower than other cities on the list, the cost of living in Gateway City is 12.3 percent lower than the national average, raising the adjusted wage to $13.68 per hour.

Spokane (above) does not have its own minimum wage law, but Washington State’s minimum wage increased by $1.25 to $15.74 an hour on Jan. 1

On the other end of the spectrum, New Orleans ranked third, behind Honolulu and Plano.

While New Orleans raised the minimum wage for city workers to $15 an hour by 2022, other workers are subject to the $7.25 federal minimum wage.

Housing costs in the Big Easy are 10.8 percent higher than the national average, meaning the adjusted minimum wage in New Orleans is worth just $6.54.

Philadelphia and Atlanta, both of which also use the federal minimum of $7.25 per hour, were also at the bottom of the list thanks to their high cost of living relative to the national average.

As an interesting side note, the study found that Orlando, Florida was the city with the cost of living closest to the national average.

The cost of living in Orlando is only 0.2 percent above the national average. As a result, the $11 minimum wage in the city is worth $10.98 after adjusting for the cost of living.