Arizona minimum wage 2027.

The Arizona minimum wage in 2027

Arizona's minimum wage is $15.65 an hour effective January 1, 2027, according to the Industrial Commission of Arizona's 2027 workplace poster. The 2026 poster shows $15.15, so the rate rises 50 cents.

What changed from 2026

The statewide rate rises from $15.15 to $15.65, an increase of 50 cents an hour. The tip credit stays at a maximum of $3.00, so the lowest direct cash wage for a tipped worker moves with the minimum, from $12.15 to $12.65.

Who is covered and the tip credit

The poster says the Act does not apply to a person employed by a parent or sibling, to casual babysitting in the employer's home, to employees of the State of Arizona or the United States government, or to someone in a small business that grosses less than $500,000 a year if that business is exempt from the federal minimum wage under section 206(a) of title 29 of the United States Code. For tipped workers an employer may pay up to $3.00 an hour less than the minimum wage if its records show that tips plus wages reach the full minimum for each week, and other conditions must also be met.

How the rate is set

The rate comes from Proposition 206, the Fair Wages and Healthy Families Act, which gives the Industrial Commission of Arizona the authority to enforce the minimum wage and earned paid sick time rules. The Commission posts the new rate each fall and employers must display the poster in a place employees can see it.

Worked example (2027)

A full-time worker at the Arizona 2027 minimum of $15.65 an hour, 40 hours a week, earns $626.00 a week, $1,252.00 every two weeks, $2,712.67 a month and $32,552.00 a year (2,080 hours) before tax. At the 2026 rate of $15.15 the same schedule paid $31,512.00 a year, so the 2027 rate adds $1,040.00. For a tipped worker the direct cash wage is $12.65. With 30 hours a week and tips averaging $2.00 an hour, pay is $14.65 an hour against a $15.65 minimum, so the employer owes a top-up of $1.00 an hour, $30.00 for the week. Part-time at 25 hours a week is $391.25 a week and $20,345.00 a year.

Method

The converter multiplies the hourly rate by your hours per week for weekly pay, doubles it for two weeks, multiplies by 52 weeks (2,080 hours at 40 a week) for annual pay and divides the annual figure by 12 for a month. It is gross pay before tax. The tipped-worker check adds the $12.65 cash wage and your average tips per hour and compares the total with the $15.65 minimum. If the total falls short, the shortfall times your hours is the top-up the employer owes for the week. Figures were read from the sources below on November 9, 2026.

What this does not cover

• Overtime, which is a separate rule, and unpaid time off.
• Local minimum wages that are higher than the state rate. Check the city or county where the work is done.
• Special rates for students, trainees, small employers or other exemptions not named on this page.
• Taxes and deductions: Arizona pay here is gross pay before tax.

Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.

Sources

• Industrial Commission of Arizona: 2027 Fair Wages and Healthy Families Act poster (PDF) (retrieved November 9, 2026)
• Industrial Commission of Arizona: 2026 Fair Wages and Healthy Families Act poster (PDF) (retrieved November 9, 2026)
• Industrial Commission of Arizona: Labor minimum wage main page (retrieved November 9, 2026)