Arizona Minimum Wage 2027: $15.65 an Hour
Short answer: Arizona's minimum wage rises from $15.15 to $15.65 an hour in 2027 (effective January 1, 2027). A full-time worker earns about $32,552 a year before taxes.
Not fully verified: the ICA page we could open confirms that a 2027 poster exists but the dollar figure comes from a law-firm bulletin and a Bloomberg Tax summary. Confirm $15.65 on the ICA poster before relying on it for payroll.
What changes on January 1, 2027
Arizona adjusts its minimum wage each year for inflation. The Industrial Commission of Arizona (ICA) has posted a 2027 minimum-wage poster for employers.
What to know in Arizona
- Tip credit: up to $3.00 per hour below the state minimum for qualifying tipped employees (a $12.65 cash wage), but only if wages plus tips reach the full minimum every workweek.
- Local rules: Tucson has its own minimum-wage ordinance that automatically rises to match a higher state or federal rate, so Tucson workers should check the city's own 2027 announcement.
What $15.65 an hour pays
| Schedule | At $15.15 (2026) | At $15.65 (2027) | Difference |
|---|---|---|---|
| Per hour | $15.15 | $15.65 | +$0.50 |
| Per 40-hour week | $606.00 | $626.00 | +$20.00 |
| Per two-week paycheck (80 hours) | $1,212.00 | $1,252.00 | +$40.00 |
| Per month (full-time ÷ 12) | $2,626.00 | $2,712.67 | +$86.67 |
| Per year, full-time | $31,512 | $32,552 | +$1,040 |
| Per year, part-time (20 h/week) | $15,756 | $16,276 | +$520 |
Use the minimum wage pay calculator to change the hours or weeks.
Overtime at the Arizona minimum wage and the federal tax deduction
Suppose a nonexempt worker earning $15.65 an hour works 6 hours of overtime a week for 45 weeks, paid at time-and-a-half. That overtime pay is $15.65 × 1.5 × 6 × 45 = $6,338. Only the premium over the regular rate, $15.65 × 0.5 × 6 × 45 = $2,113, can be deducted under the federal no-tax-on-overtime rules (up to $12,500, or $25,000 on a joint return). Try your own numbers in the overtime calculator.
Remember that some states add their own overtime rules beyond the federal 40-hour week, but only overtime required by the federal Fair Labor Standards Act counts toward the federal deduction. Read the details in Qualified Overtime and the FLSA.
How Arizona compares
Closest 2027 rates on this site:
See every state in 2027 minimum wage by state or the ranking of states raising wages on January 1.
Frequently asked questions
What is the minimum wage in Arizona in 2027?
Arizona's minimum wage for most adult workers is $15.65 per hour in 2027, up from $15.15 in 2026. Please note: Not fully verified: the ICA page we could open confirms that a 2027 poster exists but the dollar figure comes from a law-firm bulletin and a Bloomberg Tax summary. Confirm $15.65 on the ICA poster before relying on it for payroll.
How much more will a full-time Arizona worker earn at $15.65?
The raise is $0.50 an hour (3.3%). For a full-time worker at 2,080 hours a year, that is $1,040 more per year before taxes, from $31,512 to $32,552.
How does Arizona rank among 2027 minimum wages?
Among the 15 state rates with a 2027 rate on this site, Arizona ranks number 8 (1 is highest). The highest is Washington at $17.73.
Where can I confirm Arizona's rate?
Use the official source: Industrial Commission of Arizona: Labor Department (2027 poster) (https://www.azica.gov/labor-department). For payroll or a wage dispute, contact the state labor department directly.
Does the federal minimum wage still apply in Arizona?
Yes. The federal minimum is $7.25 an hour under the Fair Labor Standards Act, but where state law is higher, workers covered by both get the higher state rate.
Sources and citations
Every dollar figure on this page was checked against the official pages below on November 14, 2026. If an agency updates its guidance, the agency page controls.
- Industrial Commission of Arizona: Labor Department (2027 poster) — page confirms a 2027 poster; the dollar figure is from secondary sources
- U.S. Department of Labor: State Minimum Wage Laws (updated Nov. 5, 2026)