New minimum wage in Arizona in 2026: amount, when it goes into effect, and who will receive it

Arizona is set to implement a significant change in its labor market with a minimum wage increase that will take effect on January 1, 2026. Under the provisions of the Fair Wages and Healthy Families Act, the state minimum wage will rise from $14.70 to $15.15 per hour. This increase is driven by cost-of-living adjustments measured through the Consumer Price Index over the past year.

The adjustment is not arbitrary. State law requires the minimum wage to be updated every January 1 based on inflation recorded between August of one year and August of the next. In this case, the $0.45 increase reflects that inflation calculation, rounded to the nearest five-cent increment.

New Minimum Wage in Arizona in 2026

The new minimum wage of $15.15 per hour will apply to most wage earners across Arizona, both in urban and rural areas. This ensures a slightly higher base income for employees working full-time or part-time.

However, the law includes several important exemptions. Workers employed by parents or siblings in informal settings, occasional babysitters in private homes, government employees, and small businesses with annual revenues below a specified threshold may be excluded from the increase.

There are also specific rules for tipped employees such as servers or delivery workers. Employers may pay up to $3 less per hour as long as the employee’s combined wages and tips meet or exceed the established minimum wage.

Arizona’s minimum wage is higher than the federal minimum wage

With this adjustment, Arizona remains among the states with relatively high minimum wages nationwide, well above the federal minimum wage of $7.25 per hour, which has remained unchanged since 2009.

As 2026 begins, thousands of workers, from retail associates to service industry employees, will see the increase reflected in their paychecks. At the same time, employers will need to update their wage policies to comply with the new standard. The impact of this adjustment is expected to be a key topic in labor and economic discussions as the new year gets underway.

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