| Rate type | 2026 amount |
|---|---|
| Standard minimum wage | $15.15 per hour |
| Tipped employee cash wage | $12.15 per hour |
| Maximum tip credit | $3.00 per hour |
| Youth or training wage | None. Arizona has no training or sub-minimum wage. |
| Overtime | 1.5x the regular rate after 40 hours in a workweek (federal FLSA) |
Sources: Industrial Commission of Arizona (ICA), New 2026 Minimum Wage, the U.S. DOL tipped wage table and the ICA wage FAQ.
Proposition 206, the Fair Wages and Healthy Families Act, raised the wage to $12.00 by 2020. Since 2021 it rises each January 1 with the cost of living. The ICA announced on September 29, 2025 that the rate would go from $14.70 to $15.15, a $0.45 increase based on inflation from August 2024 to August 2025.
The law requires another cost-of-living increase on January 1, 2027. As of November 14, 2026, we could not confirm the 2027 state figure on the ICA pages we checked, so check the ICA before you update payroll.
| City | 2026 | From Jan. 1, 2027 | Tipped workers |
|---|---|---|---|
| Flagstaff | $18.35 | $18.95 | No tip credit; full city rate |
| Tucson | $15.45 | $16.00 | Tip credit up to $3.00 |
Sources: City of Flagstaff, Minimum Wage (2027 rate posted September 11, 2026) and the City of Tucson Minimum Wage Act. Tucson’s law covers employees who work at least 5 hours per pay cycle in the city. If you run sites in several cities, set the rate by work location.
According to the Arizona Department of Economic Security summary of the Act, the state wage does not cover people employed by a parent or sibling, casual babysitters in the employer’s home, employees of the State of Arizona or the federal government, or small businesses grossing under $500,000 a year that are also exempt from the federal minimum wage. Everyone else gets at least $15.15. The Act also requires earned paid sick time; see our Arizona labor laws guide for that and for payday rules.
You may pay up to $3.00 less than the minimum wage if your records show that, each week, wages plus tips reached at least $15.15 for all hours worked. Use the tip credit calculator and review the tip pooling rules. In Flagstaff, no tip credit is allowed.
Arizona has no overtime law of its own, so the federal FLSA overtime rules apply: 1.5x after 40 hours in a workweek.
The same week in Flagstaff at $18.35 costs $734.00 + (5 x $27.525) = $871.63. For a tipped server under the state rate, each overtime hour costs at least $22.725 minus the $3.00 credit, or $19.73 in cash.
| State | Basic minimum wage (Nov. 2026) |
|---|---|
| Arizona | $15.15 |
| California | $16.90 |
| Colorado | $15.16 |
| Nevada, New Mexico | $12.00 |
| Utah | $7.25 |
Figures from the U.S. Department of Labor state table, updated November 5, 2026.
EZTime’s GPS time clock app records where each punch happens, by phone, kiosk or NFC tap, sends overtime alerts and builds payroll-ready exports. Build city-by-city schedules with shift scheduling.
$15.15 per hour, effective January 1, 2026, according to the Industrial Commission of Arizona.
Employers may pay up to $3.00 less than the minimum, so at least $12.15 an hour in cash, if wages plus tips reach $15.15 every week.
Yes. Flagstaff is $18.35 in 2026 with no tip credit and $18.95 from January 1, 2027. Tucson is $15.45 in 2026 and $16.00 in 2027.
Pay the right Arizona rate at every location. Start your 14-day trial or book a demo.
Updated November 2026. Rates verified against official state sources on November 14, 2026. General information only; not legal advice.