Saint Paul sets its minimum wage by business size. As of July 1, 2026, the rate is $16.37 an hour for macro, large, and small businesses and $14.25 for micro businesses with 5 or fewer employees, and the micro rate rises to $15.00 on July 1, 2027.
In Saint Paul, the first question isn't the rate. It's which tier your business falls into, and that depends on a headcount you may never have worked out. This page covers the tiers, how size is counted, what's known about 2027, Minnesota sales tax on cleaning, and what it means for your books. Payroll registration and the statewide picture are on bookkeeping for Minnesota cleaning businesses.
Saint Paul minimum wage by business size
- Macro (10,001 or more employees): $16.37 an hour from January 1, 2026
- Large (101 to 10,000 employees): $16.37 an hour from January 1, 2026
- Small (6 to 100 employees): $16.37 an hour from July 1, 2026
- Micro (5 or fewer employees): $14.25 an hour from July 1, 2026, rising to $15.00 on July 1, 2027
For 2027, the rates for the macro, large, and small tiers are set by a City Rate calculation, a percentage increase calculated by the Minnesota Department of Labor and Industry. This page doesn't list those 2027 dollar amounts, so check the City of Saint Paul minimum wage page for them. The ordinance requires rates to be announced September 1 each year, taking effect January 1 of the following year.
Source: City of Saint Paul, Minimum Wage (page last edited August 31, 2026)
How Saint Paul counts business size
Business size is generally based on the average number of employees per week during the previous calendar year. Owners and board members aren't counted. Full-time, part-time, joint, and temporary employees are, including those located outside Saint Paul. Before I trust a labor rate in the books, I try to break the headcount behind it, so I'd pull last year's payroll and count every part-timer and temp, including the ones who never set foot in Saint Paul, before anyone settles on a tier. Confirming which tier and which jobs the ordinance covers is a question for an employment attorney.
Source: City of Saint Paul, Minimum Wage (page last edited August 31, 2026)
By contrast, Minneapolis uses one rate regardless of employer size. Minnesota's statewide rate is $11.41 in 2026 and $11.87 on January 1, 2027.
Source: Minnesota Department of Labor and Industry, Minimum-wage rate adjusted for inflation as of Jan. 1, 2026 (August 28, 2025)
Source: Minnesota Department of Labor and Industry, Minimum-wage rate adjusted for inflation as of Jan. 1, 2027 (August 19, 2026)
Minnesota sales tax on cleaning
Under Minnesota rules, commercial cleaning is taxable and residential cleaning depends on the task. The lists of taxable and nontaxable services are on the Minnesota sales tax on cleaning page. Local sales taxes aren't covered here, and how the rules apply to your jobs is for your CPA.
Source: Minnesota Department of Revenue, Building Cleaning and Maintenance industry guide (June 29, 2026)
What this means for your books
If you're a micro business, the rate change lands on July 1 instead of January 1, so the 2027 minimum is $14.25 for the first half of the year and $15.00 for the second. Your labor costs should show that split, job by job, or your mid-year margins will look better on paper than they are. Recording each payroll run against the right jobs is what payroll for cleaning businesses is built around.
I'm a bookkeeper, not a CPA or an Enrolled Agent. I keep the labor numbers accurate; tax and filing questions go to your CPA.
Rules checked against the sources above as of October 20, 2026. Rates and rules change; confirm current figures with the agency or your CPA.