Arizona Minimum Wage 2026: $15.15 an Hour, Flagstaff Runs Higher
Arizona’s minimum wage is $15.15 an hour, effective January 1, 2026, a $0.45 increase from $14.70 in 2025 based on the rise in the Consumer Price Index between August 2024 and August 2025. Arizona adjusts its minimum wage every January using this same inflation formula, and the city of Flagstaff sets its own higher local rate on top of the state floor. To price an Arizona role at the full cost of employment, use our employee cost calculator.
Arizona at a glance
| Current rate | $15.15 / hour |
|---|---|
| Effective | January 1, 2026 |
| Tipped cash wage | $12.15 / hour ($3.00 tip credit) |
| Next scheduled change | Adjusts every January 1 for inflation (CPI) |
Flagstaff sets its own, higher minimum wage
Flagstaff and Tucson are the two Arizona cities with a local minimum wage above the state rate. Tucson sits just above it at $15.45 (see the city table below); Flagstaff runs meaningfully higher:
| Flagstaff citywide rate | $18.35 / hour |
|---|---|
| Flagstaff tipped cash wage | $18.35 / hour — tip credit eliminated |
| Rest of Arizona | $15.15 / hour ($12.15 tipped) |
Flagstaff phased out its tip credit entirely, so tipped employees working inside city limits are owed the full $18.35 in direct wages regardless of tips — a meaningfully different cost basis than the rest of the state. The City of Flagstaff has announced that its minimum wage rises to $18.95 an hour on January 1, 2027, still with no tip credit.
Phoenix minimum wage 2026, with Flagstaff and Tucson
Phoenix has no local minimum wage ordinance, so the Phoenix minimum wage for 2026 is the state rate of $15.15. Two Arizona cities do set their own rates, Flagstaff and Tucson:
| City | Minimum wage | Tipped cash wage |
|---|---|---|
| Phoenix (state rate) | $15.15 | $12.15 ($3.00 tip credit) |
| Flagstaff | $18.35 | $18.35 (no tip credit) |
| Tucson | $15.45 | $12.45 ($3.00 maximum tip credit) |
Tucson’s rate is set under the Tucson Minimum Wage Act and runs from January 1 through December 31, 2026. It adjusts each year for inflation and rises automatically to match any higher state or federal rate.
What this means for hiring
A job physically based in Flagstaff has to be priced at the city’s $18.35 floor ($18.95 from January 1, 2027), not the $15.15 state rate — and because Flagstaff no longer allows any tip credit, a tipped role there costs meaningfully more in guaranteed direct wages than the same role just outside city limits. Everywhere else in Arizona, the standard $3.00 tip credit applies, bringing the tipped cash wage down to $12.15 as long as tips make up the difference to $15.15.
For breaks, overtime, final paychecks and hiring rules in Arizona, see our Arizona labor laws guide for employers.
Frequently asked questions
What is the Phoenix minimum wage in 2026?
$15.15 an hour, effective January 1, 2026. Phoenix does not have its own minimum wage ordinance, so the Arizona state rate applies, and employers can take up to a $3.00 tip credit, for a $12.15 tipped cash wage. Flagstaff ($18.35) and Tucson ($15.45) are the Arizona cities with higher local rates.
Will the Phoenix minimum wage go up in 2027?
Yes, with the state rate. Phoenix has no local ordinance, and A.R.S. 23-363(B) raises Arizona’s minimum wage every January 1 by the change in the CPI-U from August of the prior year, rounded to the nearest five cents. The January 1, 2027 rate follows the August 2025 to August 2026 change. The Industrial Commission of Arizona had not published the 2027 figure as of September 24, 2026; BLS reported that the CPI-U rose 3.4 percent over the 12 months to August 2026, so expect an increase of about that size. Until January 1, 2027, the rate is $15.15 ($12.15 tipped).
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