Arizona workers will see a higher paycheck in the new year as the state’s minimum wage increases from $14.70 to $15.15 per hour beginning January 1, 2026, according to state labor officials.
The 45‑cent increase is tied to inflation, as required under the Arizona Fair Wages and Healthy Families Act, which voters approved in 2016. The law mandates annual adjustments based on the Consumer Price Index published by the U.S. Bureau of Labor Statistics.

The Industrial Commission of Arizona announced the updated rate in its annual notice, noting that the increase reflects inflation measured between August 2024 and August 2025.

Who Is Covered

The state minimum wage applies to nearly all Arizona workers, with a few exceptions. Employees are exempt if they are:
•  Employed by a parent or sibling
•  Providing casual babysitting in a private home
•  Working for the federal or state government
•  Employed by a small business earning less than $500,000 annually and exempt under federal law
Tipped workers may be paid up to $3 less per hour than the state minimum wage, provided their tips bring them to at least $15.15 per hour.

Part of a National Trend

Arizona is one of 19 states raising minimum wages in 2026. Nationally, the Economic Policy Institute estimates that for the first time, more U.S. workers will live in states with minimum wages of $15 or higher than in states still using the federal minimum of $7.25.

Posting Requirements

Employers are required to display updated minimum‑wage posters in a location accessible to employees. The Industrial Commission has released updated English and Spanish versions on its website.