Arizona Minimum Wage 2026: $15.15 Per Hour, $15.65 in 2027

Arizona's minimum wage is $15.15 per hour in 2026, effective January 1, 2026 under A.R.S. 23-363. The Industrial Commission of Arizona has announced that the rate becomes $15.65 per hour on January 1, 2027, according to its 2027 minimum wage poster. Employers may pay tipped employees up to $3.00 per hour less than the minimum wage if tips make up the difference. Arizona law lets cities and towns set higher local minimum wages, and Flagstaff has one.

Information last verified on September 30, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This page covers the Arizona Fair Wages and Healthy Families Act minimum wage provisions (A.R.S. Title 23, Chapter 2, Article 8) and the federal Fair Labor Standards Act (FLSA) minimum wage overlay. It does not cover paid sick leave, overtime detail or other states.

What is the minimum wage in Arizona in 2026?

Arizona's minimum wage is $15.15 per hour, effective January 1, 2026. In its September 29, 2025 release, the Industrial Commission of Arizona (ICA) said the wage would rise from $14.70 to $15.15 in accordance with A.R.S. 23-363(B), a $0.45 increase based on inflation between August 2024 and August 2025.

What will Arizona's minimum wage be in 2027?

The ICA's 2027 poster states "Effective January 1, 2027, Arizona's Minimum Wage Is: $15.65 per hour." That is an announcement by the agency, and it takes effect on January 1, 2027. The statute sets the method: on January 1 of each year, the minimum wage increases by the percentage increase in the consumer price index (all urban consumers, U.S. city average, all items) as of August of the preceding year over August of the year before, with the increase rounded to the nearest multiple of five cents (A.R.S. 23-363(B)).

Tipped workers in Arizona

Arizona allows a tip credit of up to $3.00 per hour. A.R.S. 23-363(C) lets an employer pay an employee who customarily and regularly receives tips a wage up to $3.00 per hour less than the minimum wage. The employer must be able to establish, from its records of charged tips or the employee's declaration for Federal Insurance Contributions Act purposes, that for each week the employee received not less than the minimum wage for all hours worked once tips are added to wages.

Subtracting $3.00 gives a minimum cash wage of $12.15 in 2026, and $12.65 under the announced 2027 rate. The poster states the $3.00 maximum rather than a dollar cash wage. Compliance is determined by averaging tips over the payroll period or another period consistent with the commission's regulations. If tips fall short, the employer owes the difference.

Local minimum wages in Arizona

Arizona law expressly allows local rates. A.R.S. 23-364(I) states that a county, city or town may by ordinance regulate minimum wages and benefits within its geographic boundaries but may not provide for a minimum wage lower than the state rate.

One text conflict is worth knowing about. Arizona's code has two sections numbered 23-362. The one in the minimum wage article (Article 8) is a definitions section adopted by voters in 2006 (Proposition 202). A separate 1997 section with the same number, titled "Minimum wage; prohibition" and listed under Article 7 (Payment of Wages), says in subsection B that no political subdivision may establish a minimum wage that exceeds the federal minimum wage. Both appear on the legislature's website. This page relies on 23-364(I) for local authority and did not find a court ruling resolving the difference.

• Flagstaff: the City of Flagstaff has a local minimum wage higher than the state rate. Check the City of Flagstaff minimum wage page for the current rate and any scheduled increase.
• Tucson: this page has not verified Tucson's local rate. Check the City of Tucson directly.

If you work in a city with its own ordinance, read that city's page, because its coverage rules, such as hours-worked thresholds, may differ from the state's.

Who is not covered

The definitions section of the minimum wage article (A.R.S. 23-362, Article 8) and the ICA poster exclude these workers. The poster says the Act does not apply to any person employed by a parent or a sibling, any person employed performing babysitting services in the employer's home on a casual basis, any person employed by the State of Arizona or the United States government, or any person employed in a small business that grosses less than $500,000 in annual revenue, if that small business is exempt from paying a minimum wage under section 206(a) of title 29 of the United States Code.

This page did not find a youth or training sub-minimum in the rate provision, A.R.S. 23-363. It has not reviewed the learner and apprentice provisions elsewhere in Title 23, so contact the ICA about a specific arrangement.

How Arizona's minimum wage relates to the federal minimum wage

The federal minimum wage is $7.25 per hour. Where both laws apply, the higher standard governs: the FLSA does not excuse noncompliance with a state law establishing a higher minimum wage (29 U.S.C. 218(a)). Arizona's $15.15 is well above $7.25, so covered Arizona employees are owed the Arizona rate. Read the federal minimum wage page for how the FLSA works. To compare other states, see minimum wage by state.

For comparison with neighboring states, see New Mexico, Utah and Colorado.

What to do if you are paid less than the Arizona minimum wage

The ICA Labor Department handles minimum wage claims where an employer does not pay Arizona's minimum wage or does not meet posting or recordkeeping requirements. It offers a minimum wage claim form and a separate claim form for retaliation. Claims can begin on the ICA minimum wage claim form.

The Industrial Commission says a minimum wage claim must be filed within one year from the date the wages were due, and it dismisses claims for wages that were due more than one year earlier. The longer periods below apply to a lawsuit.

The remedies in A.R.S. 23-364 include:

• Civil action: a law enforcement officer or any private party injured by a violation may sue (23-364(E)).
• Time limit for a lawsuit: no later than two years after a violation last occurs, or three years for a willful violation, with the period tolled during a commission investigation (23-364(H)).
• Damages: the balance of wages owed plus interest and an additional amount equal to twice the underpaid wages. A prevailing plaintiff also recovers attorney's fees and costs (23-364(G)).
• Retaliation: an adverse action within 90 days of protected activity raises a presumption of retaliation, which the employer can rebut by clear and convincing evidence (23-364(B)). Retaliation damages are set by the commission or court, not less than $150 per day.
• Records and posting: employers must keep payroll records for four years (23-364(D)) and face a civil penalty of at least $250 for a first recordkeeping or posting violation and at least $1,000 for a subsequent or willful one (23-364(F)).

For the wider process of collecting what you are owed, see unpaid wages, and use the overtime calculator to check overtime hours.

Disclaimer: This page provides general legal information, not legal advice. It covers A.R.S. Title 23, Chapter 2, Article 8 and the federal Fair Labor Standards Act as verified on September 30, 2026. For your situation, consult a lawyer licensed in Arizona or the Industrial Commission of Arizona Labor Department.

Related

• Federal minimum wage
• Arizona final paycheck laws
• Arizona at-will employment laws
• Unpaid wages
• Overtime calculator

Last updated: September 30, 2026.

Frequently Asked Questions

What is the minimum wage in Arizona?

$15.15 per hour since January 1, 2026, under A.R.S. 23-363(B) as announced by the Industrial Commission of Arizona.

What will Arizona's minimum wage be in 2027?

$15.65 per hour effective January 1, 2027, according to the Industrial Commission's 2027 minimum wage poster.

What is the tipped minimum wage in Arizona?

Employers may pay tipped workers up to $3.00 per hour less than the minimum wage if wages plus tips reach the full minimum wage each week (A.R.S. 23-363(C)). That works out to $12.15 in 2026.

How does Arizona decide each year's increase?

On January 1 each year the wage rises by the August-to-August change in the consumer price index, rounded to the nearest five cents (A.R.S. 23-363(B)).

Can Arizona cities set a higher minimum wage?

Yes. A.R.S. 23-364(I) lets a county, city or town regulate minimum wages by ordinance if the rate is not lower than the state's. Flagstaff has a higher local rate.

Does A.R.S. 23-362 ban local minimum wages?

Arizona has two sections numbered 23-362. The one in the minimum wage article is a 2006 definitions section. A separate 1997 section with the same number, under Article 7, still displays on the legislature's website with language capping local wages at the federal level, which conflicts with 23-364(I). This page found no court ruling resolving the difference.

Who is exempt from the Arizona minimum wage?

Under the definitions section of the minimum wage article (A.R.S. 23-362, Article 8) and the ICA poster: people employed by a parent or sibling, casual babysitters in the employer's home, state and federal government employees, and workers at certain small businesses grossing less than $500,000 that are exempt under 29 U.S.C. 206(a).

How long do I have to sue for unpaid minimum wages in Arizona?

Two years after the violation last occurs, or three years for a willful violation (A.R.S. 23-364(H)).

How much can I recover for an Arizona minimum wage violation?

The unpaid wages plus interest and an additional amount equal to twice the underpaid wages, plus attorney's fees and costs for a prevailing plaintiff (A.R.S. 23-364(G)).