Tipped workers
Employers may pay a tipped employee up to $3.00 an hour less than the minimum wage, but only if their records show that wages plus tips reached the full minimum wage for every hour worked each week.
The Arizona minimum wage for 2026 and 2027, the tipped and youth rates, local city and county minimums, and how the rate is set each year. Every figure links to its official source below.
| Rate | 2026 (now) | 2027 |
|---|---|---|
| Standard minimum wage | $15.15 | $15.65 |
| Tipped employees (lowest cash wage) The minimum wage less the $3.00 maximum tip credit; tips must bring the total up to the full rate. | $12.15 | $12.65 |
Current rate in effect since January 1, 2026; next statewide change: the rate rises to $15.65 on January 1, 2027.
Employers may pay a tipped employee up to $3.00 an hour less than the minimum wage, but only if their records show that wages plus tips reached the full minimum wage for every hour worked each week.
Arizona's minimum wage law makes no distinction between adults and minors: workers under 18 get the same rate.
Two Arizona cities set a minimum wage above the state rate. Where a local rate is higher, employers inside city limits must pay it.
| City or county | Current rate | Next rate | Notes |
|---|---|---|---|
| Flagstaff | $18.35since January 1, 2026 | $18.95January 1, 2027 | No tip credit: tipped workers get the full rate. Adjusted each January 1 by CPI. |
| Tucson | $15.45since January 1, 2026 | Not yet announcedJanuary 1, 2027 | Tip credit of up to $3.00. Adjusted each year by CPI. |
Arizona's rate rises each January 1 by the increase in the cost of living, measured by the consumer price index for all urban consumers (CPI-U) from August to August and rounded to the nearest five cents (A.R.S. § 23-363).
What does $15.15 an hour leave you after tax in Arizona? Run it through the paycheck calculator.
Open the paycheck calculator →Every state side by side: minimum wage by state 2026 and minimum wage by state 2027.
$16.90 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$13.73 now; tipped, youth and local rates.
$15.16 now; tipped, youth and local rates.
$17.13 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$17.00 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$16.94 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$15.92 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$12.77 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
Every 2026 state minimum wage vs the $7.25 federal floor, DOL-sourced, all 50 states + DC + territories
Every 2027 state minimum wage vs the $7.25 federal floor, official-source verified, all 50 states + DC + territories
Federal, state, FICA withholding, net take-home, W-4 alignment
Convert annual salary to hourly wage, part-time calculations