Arizona Minimum Wage 2026 — calculator with tipped wage rules

Frequently Asked Questions

• What is Arizona's minimum wage in 2026?

  Arizona's minimum wage is $15.15 per hour effective January 1, 2026 — a $0.45 increase over the 2025 rate of $14.70/hr, based on CPI inflation data. The rate is more than double the federal minimum wage of $7.25/hr (unchanged since 2009). Source: Arizona Industrial Commission (AZICA), effective January 1, 2026.

• What is the minimum wage for tipped employees in Arizona in 2026?

  Tipped employees must receive a direct wage of at least $12.15 per hour in 2026. Employers may apply a tip credit of up to $3.00/hr. If direct wages plus actual tips do not equal at least $15.15/hr for any workweek, the employer must make up the difference. Employers must provide advance written notice before applying the tip credit.

• Does Arizona index its minimum wage to inflation each year?

  Yes. Proposition 206 (the Fair Wages and Healthy Families Act, 2016) requires annual CPI adjustments. AZICA calculates the new rate each October based on August-to-August CPI data and announces it effective January 1 of the following year. No legislative vote is required.

• Is there a lower minimum wage for young workers or trainees in Arizona?

  No. Arizona does not authorize a sub-minimum training wage or youth minimum wage below $15.15/hr for adult employees. All employees age 18 and over must be paid at least the state minimum wage. Unlike some other states, Arizona has no teen or youth differential for adults.

• Does Arizona's minimum wage apply to salaried employees?

  Arizona's minimum wage applies to all non-exempt employees, including those paid on salary. Employees exempt under the FLSA (executive, administrative, professional, outside sales, computer) are not covered by the minimum wage requirement. For non-exempt salaried workers, the effective hourly rate must meet or exceed $15.15/hr in 2026.

• Does any Arizona city or county have a higher minimum wage than the state?

  No. Arizona law preempts local minimum wage ordinances. Cities and counties cannot set a higher minimum wage than the state rate. The $15.15/hr state rate (2026) applies uniformly statewide. Local preemption was established in Arizona law before Proposition 206 took effect.

• What happens if an employer pays less than Arizona's minimum wage?

  Under A.R.S. § 23-364, employees paid below the minimum wage can recover unpaid wages plus treble (triple) damages plus attorneys' fees in a civil lawsuit. Employees may also file a wage claim with AZICA at azica.gov. The statute of limitations is 2 years (3 years for willful violations). The Arizona Attorney General can also bring enforcement actions.

• How does the tip credit work for tipped employees in Arizona?

  Arizona allows employers to pay tipped employees a direct wage as low as $12.15/hr in 2026, using a tip credit of up to $3.00/hr (always $3.00 below the state minimum). Requirements: (1) employer gives advance written notice; (2) actual tips bring total compensation to at least $15.15/hr; (3) employer makes up any shortfall. The tip credit cannot be applied retroactively.

• Are small businesses in Arizona exempt from the minimum wage?

  No. Arizona's minimum wage under Proposition 206 applies to all employers regardless of size. There is no small business exemption. Even a single-employee business must pay the $15.15/hr minimum wage. There is a narrow exception for certain family-member employees of small family businesses recognized under federal FLSA provisions.

• What is Arizona's minimum wage history and when will it increase again?

  Arizona's minimum wage rose from $14.35/hr (2024) to $14.70/hr (2025) to $15.15/hr (2026). The next increase will be announced by AZICA in October 2026, effective January 1, 2027. The exact amount depends on August 2025 to August 2026 CPI data. Visit azica.gov/labor-minimum-wage-main-page for the latest rate.