The minimum wage in Arizona is $15.15 an hour as of October 2026, more than double the federal $7.25. Tipped workers in Arizona must get at least $12.15 an hour in cash from their employer, because the state only lets employers count $3.00 of tips toward the minimum.
Arizona's rate comes from the Fair Wages and Healthy Families Act, the voter-approved Proposition 206, and the Industrial Commission of Arizona enforces it. The same law also carries the state's earned paid sick time rules, so a business that gets the wage right but ignores sick time is still out of step. The figures on this page come from the U.S. Department of Labor's state, tipped and history tables and the Industrial Commission's own minimum wage page, read in October 2026.
Arizona pay floors in one table
| Pay item | Amount (as of October 2026) |
|---|---|
| Standard minimum wage | $15.15 an hour |
| Maximum tip credit | $3.00 an hour |
| Minimum cash wage for tipped staff | $12.15 an hour |
| Federal minimum, for comparison | $7.25 an hour |
That $3.00 cap is the detail people outside the state miss. Under the federal rule an employer can count up to $5.12 of tips per hour, leaving a cash wage of just $2.13. In Arizona the employer has to pay a server more than five times that in cash before a single tip is counted.
How Arizona treats tipped work
Tips still count, but only up to the $3.00 limit. If a server's cash wage plus tips doesn't reach $15.15 for the hours worked, the employer must make up the gap. If you run a shared tip pot, my guide to tip pooling covers who can be included.
- Pay every tipped employee at least $12.15 an hour in cash.
- Track tips each pay period so you can show the total reached $15.15 an hour.
- Top up any period where cash wage plus tips falls short.
- Keep the tip credit at $3.00 or less, even for staff who earn large tips.
Arizona's payday rule
Here's a rule that trips up owners who move in from other states. The U.S. Department of Labor's payday table notes that Arizona requires two or more paydays in a month, not more than 16 days apart. A monthly payroll, which some states allow for salaried staff, doesn't meet that test in Arizona.
So if you're setting up payroll for a new Arizona hire, a twice-monthly or every-other-week schedule keeps you inside the rule. When someone leaves, my final paycheck guide explains how timing rules differ from state to state.
Arizona's rate over recent years
| Year (1 January) | Arizona rate |
|---|---|
| 2020 | $12.00 |
| 2021 | $12.15 |
| 2022 | $12.80 |
| 2023 | $13.85 |
| 2024 | $14.35 |
| As of October 2026 | $15.15 |
The Department of Labor's history table shows a rise every January across those years. If you set wages in a multi-year budget, plan for the rate to keep moving rather than treating $15.15 as fixed.
Arizona against its neighbours
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Arizona | $15.15 |
| California | $16.90 |
| Colorado | $15.16 |
| Nevada | $12.00 |
| New Mexico | $12.00 |
| Utah | $7.25 |
Arizona sits close to Colorado and below California. Utah, to the north, still pays the federal $7.25, so a business with staff in both states runs two very different pay floors. My Colorado minimum wage guide covers the state with the nearest rate.
Overtime in Arizona
Arizona doesn't list its own overtime premium in the federal state table, so overtime follows the federal Fair Labor Standards Act: time and a half for hours over 40 in a workweek for non-exempt staff. There's no daily overtime trigger, so a long shift alone doesn't earn a premium if the week stays at 40 hours or under.
Before you run Arizona payroll
- Set every hourly rate at $15.15 or more.
- Pay tipped staff at least $12.15 in cash and top up any short period.
- Run payroll at least twice a month with no more than 16 days between paydays.
- Pay time and a half after 40 hours a week for non-exempt staff.
- Read the earned paid sick time rules on the Industrial Commission's site, because they sit in the same Act.
- Check whether your city sets a higher local rate, since local governments can go above the state figure.
Mistakes Arizona employers make
- Paying tipped staff the federal $2.13 because a national payroll template defaults to it. In Arizona the cash floor is $12.15.
- Counting more than $3.00 an hour of tips toward the minimum, even for a bartender on big tips.
- Running a monthly payroll for hourly staff, which breaks the 16-day payday rule.
- Setting a starting rate once and never revisiting it, when the history table shows the rate moving every January.
- Treating earned paid sick time as optional, when it sits in the same Act as the wage rules.
The Industrial Commission's own page points employers to the Act's text and to the rules in Title 20, Chapter 5, Article 12 of the Arizona Administrative Code. It also lists the posters employers must display, including the 2026 state minimum wage poster in English and Spanish.
My verdict
Arizona is a high-wage state that people still think of as low-wage. The figure to plan around is $15.15 an hour, the tipped cash floor is $12.15, and payroll has to run at least twice a month. If you're used to the federal $2.13 tipped rule, that's the change that'll hit your costs hardest.
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Frequently asked questions
What is the minimum wage in Arizona?
It's $15.15 an hour as of October 2026, set under the state's Fair Wages and Healthy Families Act.
What is the tipped minimum wage in Arizona?
Tipped staff must be paid at least $12.15 an hour in cash, because the maximum tip credit is $3.00 an hour.
Who enforces Arizona's minimum wage?
The Industrial Commission of Arizona enforces the minimum wage and the earned paid sick time rules in the same Act.
How often must Arizona employers pay staff?
The U.S. Department of Labor's payday table says two or more paydays a month, not more than 16 days apart.
Does Arizona have daily overtime?
No. Overtime follows the federal rule of time and a half after 40 hours in a workweek.
Is Arizona's minimum wage higher than the federal rate?
Yes. At $15.15 an hour it's more than double the federal $7.25.
Can an Arizona city set a higher minimum wage?
Some local governments set rates above their state minimum, according to the U.S. Department of Labor's state table, so check your city before you set pay.
Do Arizona employers have to give paid sick time?
Yes. The Fair Wages and Healthy Families Act that sets the minimum wage also sets earned paid sick time rules, enforced by the Industrial Commission of Arizona.
