Minimum wage rates across New England vary significantly — and several states have automatic annual increases tied to inflation. Here’s the complete 2025 picture.
2025 Minimum Wage by State
| State | Standard | Tipped | Notes |
|---|---|---|---|
| Massachusetts | $15.00/hr | $6.75/hr | Tips must bring total to $15.00 |
| Connecticut | $16.35/hr | $8.23/hr | Tied to inflation (CPI) |
| Rhode Island | $15.00/hr | $3.89/hr | Tips must bring total to $15.00 |
| Vermont | $14.01/hr | $7.01/hr | Annual CPI adjustment |
| New Hampshire | $7.25/hr | $3.27/hr | Follows federal minimum |
| Maine | $14.65/hr | $7.33/hr | Annual CPI adjustment |
State-by-State Details
Massachusetts
Massachusetts increased its minimum wage to $15.00/hr in January 2023, where it currently stands. The tipped minimum is $6.75/hr — but if tips don’t bring the total to $15.00/hr, the employer must make up the difference.
Service rate workers (hotels, restaurants) also have a separate rate. Always confirm your employee classification with MGL Chapter 151.
Connecticut
Connecticut’s minimum wage is tied to the Employment Cost Index (ECI) and adjusts automatically each January. The current rate is $16.35/hr, making it the highest standard minimum wage in New England.
The tipped minimum wage is $8.23/hr for bartenders and $7.62/hr for wait staff, with tip credit rules applying.
Rhode Island
Rhode Island reached $15.00/hr in January 2025. The tipped minimum wage is $3.89/hr — one of the lowest tip credits in the region, so the math on tip makeup pay matters.
Vermont
Vermont uses CPI-based annual adjustments. The 2025 rate is $14.01/hr, with the tipped minimum at $7.01/hr. Vermont’s tip credit is relatively small — just $7.00/hr — so most tipped workers earn close to the full minimum regardless.
New Hampshire
New Hampshire has not raised its minimum wage above the federal floor of $7.25/hr. This makes it the lowest minimum wage in New England. The tipped minimum is $3.27/hr.
If you’re hiring in NH, market rates are significantly higher than the legal minimum. The state’s low unemployment rate means you’ll likely need to offer more to compete.
Maine
Maine’s minimum wage is $14.65/hr in 2025, adjusted annually using CPI. Portland has its own higher local minimum wage — check city ordinances if you operate there. The tipped minimum is $7.33/hr.
Tip Credit Rules
A “tip credit” lets employers pay tipped workers less than minimum wage, as long as tips cover the gap. The math:
Tip credit = Minimum wage − Tipped minimum wage
If tips in a given pay period don’t cover the full tip credit, you must pay the difference. You cannot average tips across the week — the calculation is done per pay period.
Overtime Interaction
Minimum wage applies to the regular rate of pay for overtime purposes. When calculating overtime at 1.5x, the base is the employee’s regular rate — which must be at or above minimum wage.
For tipped employees, overtime is calculated on the full minimum wage rate, not the tipped minimum. This is a common mistake.
Upcoming Changes to Watch
- Connecticut adjusts each January — expect another increase in January 2026
- Vermont adjusts each January based on CPI
- Maine adjusts each January
- Massachusetts — no scheduled increases currently; any changes require legislation
Use the Calculator
The OtterDesk payroll calculator automatically applies the correct minimum wage for whichever New England state you select, including the tipped employee rate. It will also flag if a computed wage falls below the legal minimum.