Arizona Minimum Wage Rises to $15.65 Jan. 1: What Phoenix Workers Need to Know

PHOENIX, AZ — Arizona's minimum wage goes up 50 cents to $15.65 an hour on Friday, January 1, 2027. The Industrial Commission of Arizona confirmed the new rate this fall, and it applies to every job in Phoenix, from a register in Maryvale to a warehouse floor off I-10. If you're job hunting this winter, that's the new floor under every offer you see.

The Phoenix minimum wage for 2027 is $15.65 an hour, $12.65 for tipped workers, and the rate follows the job address, not your home address.

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New minimum wage	$15.65 an hour
Current rate (2026)	$15.15 an hour
Takes effect	Friday, January 1, 2027
Tipped minimum	$12.65 cash wage, with tips required to bring you to at least $15.65
Set by	Industrial Commission of Arizona, adjusted each year for inflation
Full-time at the new minimum	About $626 a week, or $32,552 a year, before taxes

Why the Arizona Minimum Wage Goes Up Every January

Arizona voters tied the state minimum wage to inflation when they passed Proposition 206 in 2016. Each fall the Industrial Commission of Arizona applies the change in the Consumer Price Index from August to August and posts the new rate. The 12 months ending August 2026 brought 3.4% inflation, which is how $15.15 becomes $15.65.

For a full-time worker, 50 cents an hour comes to roughly $1,040 more a year before taxes. It isn't life-changing, but it does reset the bottom of the market across the Valley.

What It Means If You Work in Phoenix

Phoenix has no minimum wage ordinance of its own, so the state rate is the legal floor everywhere in the city: Ahwatukee, Laveen, North Phoenix, all of it. The same goes for most of the Valley. Flagstaff and Tucson are the Arizona cities that set their own local rates.

The rule to remember is simple: the address where you do the work decides your minimum. Where you live and where the company is headquartered don't matter.

Tipped workers in restaurants and bars can be paid a cash wage as low as $12.65, because Arizona allows employers a tip credit of up to $3 an hour. If your tips don't bring you to $15.65 for the hours you worked, your employer has to make up the difference. Check your pay stubs in January.

The rate covers most jobs, with a few narrow exceptions written into state law, such as people working for state or federal government, some very small businesses, and a parent or sibling working for a family business.

The Minimum Is the Floor, Not the Going Rate

Don't anchor your job search to $15.65. Plenty of Phoenix employers already start well above it, especially in warehousing, call centers and airport work. Earlier this fall, a customer service employer at a South Phoenix library job fair advertised pay up to $23.50 an hour. Treat the new minimum as the number no offer can go below, then look for the jobs that beat it.

One more benefit worth knowing: Arizona's earned paid sick time law, part of the same voter measure, gives you one hour of paid sick time for every 30 hours you work. Employers with 15 or more workers must let you use up to 40 hours a year. Smaller employers must allow up to 24 hours.

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Frequently Asked Questions

What is the minimum wage in Phoenix in 2027?

$15.65 an hour starting January 1, 2027. Phoenix follows the Arizona state rate.

What is the tipped minimum wage in Arizona for 2027?

$12.65 an hour in cash wages. Tips must bring your total to at least $15.65 an hour, or your employer pays the difference.

Do I need to ask for the raise?

No. If you're earning less than $15.65, your employer must raise your pay for hours worked on or after January 1, 2027.

Does it matter if I live in Phoenix but work in another city?

Yes. The minimum is set by where you do the work. Within the Phoenix area that's the state rate, but a job in Flagstaff or Tucson follows that city's own rate.

Who do I contact if I'm paid less than the minimum?

The Industrial Commission of Arizona's Labor Department handles minimum wage and paid sick time complaints. Keep your pay stubs and a record of your hours.

Find a Phoenix Job That Pays More Than the Minimum

Create a free profile at LocalJobPage so Phoenix employers can find you, and browse the Career Center for role-by-role pay and hiring guides.

Employers: Hiring ahead of January? Post your Phoenix jobs on LocalJobPage and reach local workers.