Arizona's minimum wage took effect at $15.15 per hour on January 1, 2026, for most workers outside specific cities, marking a $0.45 increase from 2025's $14.70 rate.

This adjustment follows Proposition 206 (Fair Wages and Healthy Families Act), tying annual raises to inflation via the Consumer Price Index from August 2024 to August 2025, as set by the Industrial Commission of Arizona.

Regional Variations

Arizona's rates differ by location to address local living costs:

  • Flagstaff (non-tipped workers) : $18.35/hour (up from $17.85).
  • Flagstaff (tipped workers) : $12.15/hour (up from $11.70).
  • Tucson : $15.45/hour (up from $15.00).
  • Rest of state : $15.15/hour standard.

Area| 2026 Non-Tipped| 2026 Tipped| 2025 Non-Tipped
---|---|---|---
Statewide (excl. cities)| $15.15 3| $12.15 3| $14.70 3
Flagstaff| $18.35 1| $12.15 1| $17.85 1
Tucson| $15.45 1| Varies*| $15.00 1

*Tipped credit up to $3/hour if tips + cash meet standard.

Tipped Worker Rules

Employers can pay tipped employees $12.15/hour statewide (or local equivalent), claiming up to a $3.00 tip credit—provided tips plus cash wages total at least the full minimum for all hours worked weekly.

This ensures fairness while supporting tipped industries like hospitality.

Historical Increases

Arizona's wage has climbed steadily since voters approved Prop 206 in 2016:

Year| Standard Rate| Tipped Rate
---|---|---
2026| $15.15 3| $12.15 3
2025| $14.70 3| $11.70 3
2024| $14.35 3| $11.35 3
2023| $13.85 3| $10.85 3
2022| $12.80 3| $9.80 3

These inflation-driven hikes outpace the federal $7.25 minimum.

Exemptions and Compliance

  • Exempt : Full-time students, certain apprentices, some disabled workers.
  • Employers must display posters and provide paystubs showing rates.
  • Violations trigger Industrial Commission investigations.

As of March 2026, no further changes are announced for the year.

TL;DR : $15.15/hour statewide (higher in Flagstaff/Tucson), $12.15 tipped; inflation-adjusted annually.

Information gathered from public forums or data available on the internet and portrayed here.