Arizona minimum wage 2026
The minimum wage in Arizona is $15.15 an hour in 2026, rising to $15.65 on January 1, 2027. Arizona's rate comes from two voter initiatives, Proposition 202 in 2006 and Proposition 206 in 2016, and has been adjusted every January 1 since 2021 for inflation. Tipped workers can be paid at most $3.00 below the minimum, and cities may set higher local rates.
Contents11 sections
At a glance
| Minimum wage now | $15.15 an hour, since January 1, 202612 |
|---|---|
| Next change | $15.65 on January 1, 2027 (announced)9 |
| Tipped employees | $12.15 cash wage, tip credit up to $3.0042 |
| Overtime | 1.5 times the regular rate after 40 hours a week (federal law only)110 · details |
| Full-time pay | $606 a week, $31,512 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Industrial Commission of Arizona, Labor Department |
What to know about the Arizona minimum wage
Arizona's wage law was written by voters rather than the Legislature. Proposition 202 created a state minimum in 2006, and Proposition 206 in 2016 set the schedule in A.R.S. 23-363: $10.00 on January 1, 2017, rising each year to $12.00 on January 1, 2020.4 Since January 1, 2021 the rate has risen every January with the cost of living, measured by the national consumer price index and rounded to the nearest five cents.4 That process produced $15.15 on January 1, 2026.1 From the August 2026 index, the Industrial Commission of Arizona set $15.65 an hour for January 1, 2027.9
The tip credit is capped at a fixed dollar amount rather than a share of the wage. An employer may pay up to $3.00 below the minimum, which made the cash wage $12.15 from January 1, 2026, only when wages plus tips reach the full rate; tips may be averaged over the payroll period to check this.4
Because the 2006 measure included A.R.S. 23-364(I), counties, cities and towns may set their own higher minimum wages, and the voter-approved text protects that authority.5 A 1997 statute that forbids local wages above the federal minimum is still printed in the code, but the cities with higher rates enforce them under the later voter-approved provision.6
The Industrial Commission enforces the law. Workers can sue within two years of a violation, or three if it was willful; an employer that underpays owes the shortfall with interest plus twice that amount, and any adverse action within 90 days of a worker asserting these rights is presumed to be retaliation.5 Proposition 206 also gave Arizona workers earned paid sick time.
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $12.15 an hour42 |
| Maximum tip credit | $3.00 an hour |
Employers may pay tipped employees up to $3.00 an hour less than the minimum wage if wages plus tips equal at least the full minimum, judged by averaging tips over the payroll period or another period the employer selects (A.R.S. 23-363(C)).
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
Overtime and salaried staff
| Weekly overtime | No state rule; employers covered by federal law pay 1.5 times the regular rate after 40 hours a week110 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Arizona has no general state overtime law. Employers covered by the federal Fair Labor Standards Act must pay time and a half after 40 hours in a workweek.
Overtime at the minimum wage of $15.15 is $22.725 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
Every January 1 the rate rises by the increase in the national consumer price index for urban consumers over the year to August, rounded to the nearest five cents (A.R.S. 23-363(B)). The Industrial Commission of Arizona announces the new figure in the fall.
The Industrial Commission of Arizona set the January 1, 2027 rate from the national consumer price index for August 2026. Tipped employees may be paid up to $3.00 an hour less, $12.65.
Indexed to inflation: yes. Adjusted each January 1 by the August-to-August change in the national CPI-U, rounded to the nearest 5 cents.41
Rate history
Who is covered
Most employers in Arizona must pay the state rate under the voter-approved minimum wage acts (A.R.S. 23-362 to 23-364). The acts exclude some employers, including the State of Arizona, the federal government and certain small businesses not required to pay the federal minimum wage; the Industrial Commission of Arizona can confirm whether an exclusion applies.
- The voter-set steps were $10.00 in 2017, $10.50 in 2018, $11.00 in 2019 and $12.00 in 2020; inflation indexing began in 2021.
- Proposition 206 (2016) also created earned paid sick time under the Fair Wages and Healthy Families Act.
- An employer that underpays must pay the unpaid wages with interest plus twice the unpaid amount (A.R.S. 23-364).
- Arizona has no daily overtime; federal overtime rules apply.
Local rates in Arizona
Cities, towns and counties may set a higher minimum wage within their borders under A.R.S. 23-364(I), added by voter-approved Proposition 202 in 2006. An older 1997 statute (A.R.S. 23-362) that forbids higher local wages remains in the printed code, but local rates are enforced under the voter-protected provision.
Places with their own rate
Each local page lists that place's tiers, next change and who is covered.
Largest cities in Arizona
- PhoenixState $15.15
- TucsonLocal $15.45
- MesaState $15.15
Cities of Arizona among the 50 most populous in the US (U.S. Census Bureau, Vintage 2025 estimates for July 1, 2025). “Local” marks a city with its own minimum wage, “Regional” a state wage region, and “Federal rate” a city where the federal $7.25 is the rate that applies.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| California | $16.90 |
| Colorado | $15.16 |
| New Mexico | $12.00 |
| Nevada | $12.00 |
| Utah | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Industrial Commission of Arizona, Labor Department |
|---|---|
| The law | A.R.S. 23-363 (minimum wage; tip credit; indexing); A.R.S. 23-364 (enforcement; local authority in subsection I); A.R.S. 23-362 (1997 version: minimum wage; prohibition) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
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- 4 Arizona State Legislature, A.R.S. 23-363 Minimum wage Checked Oct 9, 2026 · Back to text ↑
- 5
- 6 Arizona State Legislature, A.R.S. 23-362 Minimum wage; prohibition (1997) Checked Oct 9, 2026 · Back to text ↑
- 7 UC Berkeley Labor Center, Inventory of US City and County Minimum Wage Ordinances (cross-check only, updated 2026-09-30) Secondary reference · Checked Oct 9, 2026
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- 10 U.S. Department of Labor, Wage and Hour Division, Overtime Pay Checked Oct 28, 2026 · Back to text ↑
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