Arizona Minimum Wage (2026)
Arizona's statewide minimum wage is $15.15 per hour for 2026. Tucson and Flagstaff have higher local minimum wages set by city ordinance.
Minimum Wage by Location
| Location | Minimum wage | Tipped rate |
|---|---|---|
| Arizona (statewide) | $15.15 | $12.15 |
| Tucson | $15.45 | $12.45 |
| Flagstaff | $18.35 | Same as full rate |
How Arizona's Minimum Wage Is Set
The Industrial Commission of Arizona adjusts the statewide minimum wage every January 1st based on the change in the Consumer Price Index (CPI) between the prior August and the August before that — voters established this annual inflation adjustment through a 2016 ballot measure.
Tipped Employees
Arizona allows employers to pay tipped employees a lower cash wage — a "tip credit" of up to $3.00 per hour — as long as tips bring the employee's total pay up to at least the full minimum wage. Statewide, that puts the tipped cash minimum at $12.15/hour. Flagstaff eliminated its tip credit, so tipped employees there must be paid the full local minimum wage in cash, with tips on top.
Why Tucson and Flagstaff Are Higher
Arizona cities can set a local minimum wage above the state floor. Tucson voters approved the Tucson Minimum Wage Act in 2021, phasing in a higher local rate. Flagstaff has had a higher voter-approved minimum wage since 2017, and it remains the highest in the state. Neither city has a local income tax — the higher figures only apply to minimum wage, not tax withholding.
See what minimum wage looks like after taxes with the Minimum Wage Calculator, or check city-specific pay details for Phoenix, Tucson, and Flagstaff.
Frequently Asked Questions
What is Arizona's minimum wage in 2026?+
Arizona's statewide minimum wage is $15.15 per hour, effective January 1, 2026.
Why is Flagstaff's minimum wage the highest in Arizona?+
Flagstaff voters approved a local minimum wage ordinance in 2016 that set the city's rate above the state floor and eliminated the tipped-wage credit. As of 2026, Flagstaff's rate of $18.35/hour is the highest of any Arizona city.
Does Phoenix have its own minimum wage?+
No — Phoenix follows Arizona's statewide minimum wage of $15.15/hour; the city has not passed a separate local minimum wage ordinance.
Tax year 2026 · Data reviewed 2026-08-15 · See methodology and sources. Estimates only — not tax or legal advice.