Arizona Minimum Wage 2026 and How It Rises

Arizona's minimum wage is $15.15 an hour in 2026, and a 2016 voter-approved law raises it every January to keep up with prices. Flagstaff pays more, and cities are free to set their own.

By Resist Now Published

Arizona Minimum Wage in 2026

Arizona’s minimum wage is $15.15 an hour in 2026, up from $14.70 in 2025. Tipped workers can be paid $12.15 an hour in cash if tips bring them up to $15.15 every week (Industrial Commission of Arizona; A.R.S. 23-363).

Key facts

  • Arizona’s wage is more than double the federal minimum of $7.25.
  • The rate rises every January 1 by the year’s change in consumer prices; the 2027 rate has not been announced yet.
  • Flagstaff sets its own wage: $18.35 in 2026 and $18.95 in 2027 (City of Flagstaff).
  • The same 2016 law gives most workers up to 40 hours of paid sick time a year.
$31,512
a year for full-time work at $15.15, before taxes
$38,168
a year at Flagstaff's $18.35
$15,080
a year at the federal $7.25

A full-time worker at $15.15 earns $31,512 a year before taxes. These figures use the same full-time year as our minimum wage explainer.

How the Arizona Minimum Wage Rises

Arizona’s wage rises on its own each January 1, by the change in consumer prices from one August to the next. The increase is rounded to the nearest five cents. Voters set this rule in 2016 with Proposition 206, the Fair Wages and Healthy Families Act, which raised the wage in steps to $12 by 2020 (A.R.S. 23-363).

The 2026 raise was 45 cents. The Industrial Commission announced it on September 29, 2025, from the change in prices between August 2024 and August 2025 (Industrial Commission). As of October 3, 2026, the commission had not announced the 2027 rate. When it does, the new rate takes effect January 1, 2027.

Arizona and Neighboring States

Arizona pays more than Nevada, New Mexico and Utah, and less than California and Colorado.

Minimum wage most workers earn in Arizona and neighboring states, 2026 (dollars per hour)
Minimum wage most workers earn in Arizona and neighboring states, 2026 (dollars per hour)
CategoryValue
California$16.9
Colorado$15.16
Arizona$15.15
Nevada$12
New Mexico$12
Utah$7.25

Source: U.S. Department of Labor, State Minimum Wage Laws (updated July 1, 2026). Rates as of October 14, 2026.

Colorado’s wage tops Arizona’s by a penny in 2026, and Utah still uses the federal $7.25. Our minimum wage by state page shows every state’s rate.

Tipped Minimum Wage in Arizona

Arizona employers can pay tipped workers up to $3.00 an hour less than the minimum, which is $12.15 in 2026. The employer must show, through tip records or the worker’s tax filings, that wages plus tips reached $15.15 for every hour worked that week. If tips fall short, the employer must make up the difference (A.R.S. 23-363(C)).

Flagstaff Minimum Wage

Flagstaff’s minimum wage is $18.35 an hour in 2026, and it rises to $18.95 on January 1, 2027. Flagstaff voters set the city wage with Proposition 414 in 2016, and every worker there gets the full rate, tips or not (City of Flagstaff).

Arizona law lets any county, city or town set a minimum wage above the state’s (A.R.S. 23-364(I)). Many states block cities from doing this. Our preemption explainer shows which ones.

Arizona Paid Sick Time

Arizona workers earn one hour of paid sick time for every 30 hours they work. At employers with 15 or more workers, they can earn and use up to 40 hours a year. At smaller employers, the cap is 24 hours, unless the employer allows more (A.R.S. 23-372).

Arizona Wages by Situation

Open the situation closest to yours. This is general information, not legal advice.

Arizona minimum wage, by situation

I am paid less than $15.15 an hour
  1. Write down your hours and pay for each week.
  2. Keep your pay stubs and any schedule your employer gives you.
  3. File a wage complaint with the Industrial Commission of Arizona's Labor Department.

$15.15 is the floor for most Arizona workers, and the Industrial Commission enforces it.

I work in Flagstaff
  1. Check that your pay is at least $18.35 an hour.
  2. Tips do not count toward the Flagstaff wage.
  3. Contact Flagstaff's Office of Labor Standards if you are paid less.

Flagstaff sets a higher wage than the state, and the city enforces it.

My tips do not reach the minimum
  1. Track your cash wage and reported tips for every shift.
  2. Ask your employer to make up the shortfall for that week.
  3. If they will not, file a complaint with the Industrial Commission.

Tips plus the $12.15 cash wage must reach $15.15 for every hour.

Where Things Stand

Arizona minimum wage laws

As of October 3, 2026

  • Arizona minimum wage (A.R.S. 23-363) Law, $15.15 an hour in 2026

    Rose from $14.70 on January 1, 2026, by the August-to-August change in consumer prices. The Industrial Commission had not announced the 2027 rate as of October 3, 2026. (source)

  • Flagstaff city minimum wage Law, $18.35 in 2026

    Rises to $18.95 on January 1, 2027, with no lower wage for tipped workers. (source)

  • Earned paid sick time (A.R.S. 23-372) Law, One hour for every 30 worked

    Up to 40 hours a year at employers with 15 or more workers, and 24 hours at smaller ones. (source)

Source: Industrial Commission of Arizona; Arizona Revised Statutes; City of Flagstaff

Arizona Minimum Wage Questions

What is the minimum wage in Arizona in 2026?

$15.15 an hour, up from $14.70 in 2025. Tipped workers can be paid $12.15 in cash if tips bring them to $15.15, and Flagstaff’s city minimum is $18.35.

What will the Arizona minimum wage be in 2027?

The Industrial Commission had not announced the 2027 rate as of October 3, 2026. By law, the wage rises each January 1 by the change in consumer prices from August to August, rounded to the nearest five cents. Flagstaff’s wage will be $18.95 in 2027.

What is the tipped minimum wage in Arizona?

$12.15 an hour in 2026, which is $3.00 less than the minimum. The employer must show that wages plus tips reached $15.15 for every hour worked, or make up the difference.

Do Arizona employers have to give paid sick time?

Yes. Workers earn one hour for every 30 worked, up to 40 hours a year at employers with 15 or more workers and 24 hours at smaller ones.

What You Can Do

  1. Check your pay against $15.15, or $18.35 if you work in Flagstaff.
  2. Keep your own record of hours and pay, so you can show what you were paid if you need to file a complaint.
  3. Report unpaid wages or sick time to the Industrial Commission’s Labor Department.
  4. Vote on November 3. Every seat in the Legislature is on the ballot, along with the governor. See our Arizona governor race guide.
  5. Compare other states on our minimum wage by state page.