Minimum wage in Arizona, 2007–2027
- Minimum wage in 2026
$15.15 an hour1
- On January 1, 2027
$15.65 an hour2
Up $0.50 from today.
- Tipped employees
$12.15 an hour in cash3
Employers may count up to $3 an hour of tips toward the minimum wage.
- Overtime
Time and a half after 40 hours a week (federal FLSA)4
For covered employees who are not exempt.
The Arizona minimum wage rose from $6.75 in 2007 to $15.15 in 2026; $15.65 from Jan 1, 2027
Line chart of the Arizona minimum wage against the federal minimum: $7.25 in 2010, $12 in 2020, $15.15 in 2026, and $15.65 in 2027. The federal minimum was $5.15 in 2000 and $7.25 in 2026.
What a full-time minimum-wage employee costs in Arizona
At $15.15 an hour for 40 hours a week, a new employer with 10 staff pays $31,512 in wages and $2,833 on top (9.0%) in payroll taxes and workers' comp. At the 2027 rate of $15.65 with 2026 payroll tax rates: $35,472 a year.
- Wages (2,080 paid hours a year)
- $31,512
- Social Security (employer share)6.2%6 of $31,512
- $1,954
- Medicare (employer share)1.45%7 of $31,512
- $457
- Workers' compensation (benchmark index rate)$0.70 per $100 of payroll10
- $221
- Total a year
- $34,345
If you also offer single health coverage, the average employer here pays about $5,897 more a year: a $7,734 average premium11 less $1,837 paid by the employee11.
Frequently asked questions
What is the minimum wage in Arizona in 2026?
$15.15 an hour: $31,512 a year at full time.
What will the minimum wage be in Arizona in 2027?
$15.65 an hour from Jan 1, 2027, after $15.15 an hour in 2026: $32,552 for a full-time year.
What is the minimum wage for tipped employees in Arizona?
$12.15 an hour in cash, with up to $3 of tips counted toward Arizona's $15.15.
How much does a minimum-wage employee cost an employer in Arizona?
About $34,345 a year full time at $15.15: $31,512 of pay plus $2,833 on top, $2,613 in payroll taxes and $221 in workers' comp, before any health coverage.
How has the Arizona minimum wage changed since 2000?
The Arizona minimum wage rose from $6.75 in 2007 to $15.15 in 2026; $15.65 from Jan 1, 2027. On the way: $7.25 in 2010 and $12 in 2020, per the U.S. DOL.
More minimum wage and employer cost pages
Employer costs in Arizona
States with a similar minimum wage
Data and rules for every state
Sources
The 11 pages this page's facts come from, with the day we last checked each one. The numbers beside the figures above link here.
Quotes from the sources
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/minimum-wage/state“Arizona Basic Minimum Rate (per hour): $15.15” “Arizona … Basic Minimum Rate (per hour): $15.15”
- Industrial Commission of Arizona azica.gov/sites/default/files/2026-09/2027%20THE%20FAIR%20WAGES%20AND%20HEALTHY%20FAMILIES%20ACT_1.pdf“Effective January 1, 2027, Arizona's Minimum Wage Is: $15.65 per hour”
- U.S. Department of Labor, Wage and Hour Division dol.gov/agencies/whd/state/minimum-wage/tipped“Definition of Tipped Employee by Minimum Tips received (monthly unless otherwise specified) … State requires employers to pay tipped employees a minimum cash wage above the minimum cash wage required under the federal Fair Labor Standards Act ($2.13/hour) … Arizona $15.15 $3.00 $12.15 Not specified”
- U.S. Department of Labor, Wage and Hour Division Overtime Pay - US Department of Labor“Unless exempt, employees covered by the Act must receive overtime pay for hours worked over 40 in a workweek at a rate not less than time and one-half their regular rates of pay.”
- U.S. Department of Labor, Wage and Hour Division Changes in Basic Minimum Wages in Non-Farm Employment Under State Law: Selected Years 1968 to 2024“Arizona 18.72 - 26.40/wk(b) 18.72 - 26.40/wk(b) 18.72-26.40/wk(b) ... ... ... ... … Arizona ... ... ... ... ... ... ... … Arizona ... ... ... ... ... ... ... … Arizona 6.75 6.90 7.25 7.25 7.35 7.65 7.80 … Arizona 7.90 8.05 8.05 10.00 10.50 12.00 … Arizona 12.00 12.15 12.80 13.85 14.35” “Federal (FLSA) $1.15 & $1.60 $1.30 & $1.60 $1.60 $2.20 & $2.30 $2.90 $3.10 $3.35 … Federal (FLSA) $3.35 $3.80 $4.25 $4.25 $4.25 $4.75 $5.15 … Federal (FLSA) $5.15 $5.15 $5.15 $5.15 $5.15 $5.15 5.15 … Federal (FLSA) 5.15 5.85 6.55 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25 7.25 … Federal (FLSA) 7.25 7.25 7.25 7.25 7.25” “For the years indicated, the laws in Arizona, Arkansas, California, Colorado, Kentucky, Minnesota, Ohio, Utah, and Wisconsin applied only to women and minors.”
- Internal Revenue Service IRS Publication 15 (Circular E), Employer's Tax Guide“For 2026, the social security tax rate is 6.2% (amount withheld) each for the employer and employee (12.4% total).”
- Social Security Administration ssa.gov/oact/cola/cbb.html“Tax rates under the HI program are 1.45 percent for employees and employers, each, and 2.90 percent for self-employed persons.”
- Internal Revenue Service Topic no. 759, Form 940 – FUTA tax (IRS)“If you're entitled to the maximum 5.4% credit, the FUTA tax rate after credit is 0.6%.” “FUTA tax rate: The FUTA tax rate is 6.0%. The tax applies to the first $7,000 you paid to each employee as wages during the year.”
- U.S. Department of Labor, Employment and Training Administration oui.doleta.gov/unemploy/content/sigpros/2020-2029/January2026.pdf“New employer rate shown is the base rate. … AZ … 2.00%” “AZ … $8,000”
- Oregon Department of Consumer and Business Services oregon.gov/dcbs/reports/cost/Pages/premium-index-rates.aspx“Premium index rate: Less than $0.75 … State Index rate Percent of study median … 46 44 Arizona 0.70 64%”
- Agency for Healthcare Research and Quality (MEPS-IC) meps.ahrq.gov/mepsweb/data_stats/summ_tables/insr/state/series_2/2025/ic25_iia_f.pdf“Table II.C.1 Average total single premium (in dollars) per enrolled employee … Division and State Total … Arizona 7,734 -- -- 7,036 7,571 7,750 8,640 7,578” “Table II.C.2 Average total employee contribution (in dollars) per enrolled employee for single coverage … Division and State Total … Arizona 1,837 -- -- 1,009 1,744 1,771 2,503 * 1,722”