Arizona Minimum Wage 2026
The minimum wage in Arizona is $15.15 per hour in 2026, effective January 1, 2026. Tipped employees can be paid a cash wage of $12.15 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in Arizona in 2026?
The Arizona minimum wage is $15.15 per hour as of January 1, 2026, up from $14.70 in 2025. Arizona adjusts its rate every January for inflation under Proposition 206, the ballot measure voters approved in 2016.
Arizona also permits local minimum wages. Flagstaff has run its own, higher schedule for years, and Tucson adopted a city minimum wage ordinance as well, so employers with locations in those cities must apply the higher local rate.
Tipped minimum wage in Arizona
The tipped minimum wage in Arizona is $12.15 per hour in 2026. Arizona allows a tip credit of up to $3.00, so the tipped cash wage is always $3.00 below the full minimum.
Tips plus cash wages must reach $15.15 per hour (or the higher local minimum in Flagstaff and Tucson). Employers must be able to document that tipped employees hit the full rate for each pay period.
Arizona minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $12.00 | $9.00 |
| 2021 | $12.15 | $9.15 |
| 2022 | $12.80 | $9.80 |
| 2023 | $13.85 | $10.85 |
| 2024 | $14.35 | $11.35 |
| 2025 | $14.70 | $11.70 |
| 2026 | $15.15 | $12.15 |
Upcoming minimum wage increases in Arizona
Arizona's minimum wage adjusts every January 1 based on the Consumer Price Index, with the Industrial Commission of Arizona announcing the new rate each fall. A 2027 increase is effectively guaranteed.
Flagstaff's local minimum follows its own formula and stays above the state rate, and Tucson's ordinance adjusts annually as well. Budget per-location, not per-state, if you operate in either city.
Minimum wage by city in Arizona
Most Arizona cities, including Phoenix, Mesa, and Scottsdale, follow the state rate of $15.15. Two cities set their own higher minimums.
Flagstaff has the highest minimum wage in Arizona, above $18.00 per hour in 2026 under its city ordinance. Tucson's city minimum runs slightly above the state rate. Both adjust annually, so check the city websites for the exact current figures before setting pay rates there.
State rate applies
City ordinance slightly above the state rate; adjusts annually
Highest in Arizona, above $18.00 in 2026; adjusts annually
State rate applies
What Arizona employers need to know
Coverage
Arizona's minimum wage covers nearly all employees, with narrow exceptions such as some small family businesses and casual babysitting. The federal small-business exemption does not carry over.
Paid sick time
Proposition 206 also mandates earned paid sick time: employees accrue 1 hour per 30 hours worked, capped at 40 hours per year for employers with 15+ employees (24 hours for smaller ones).
Tipped employees
The tip credit is capped at $3.00. Keep records showing tipped employees reach the full applicable minimum each pay period.
Local rates
Apply Flagstaff's or Tucson's ordinance for hours worked inside those city limits, including for delivery and mobile crews.
How other states compare
See how Arizona's $15.15 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Arizona labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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