Arizona's minimum wage of $15.15 in 2026 is among the highest in the United States, and it is significantly higher than than the base federal minimum wage of $7.25 still used in 20 states.
Assuming a standard 40-hour work week, the weekly minimum wage in Arizona is $606. For full-time employees working 52 weeks per year, the annual minimum wage in Arizona is $31.5K.
Based on $15.15/hr minimum
Based on $15.15/hr minimum
The minimum wage rate of Arizona and its neighboring states ranges from $7.25 to $16.90, with an average of $13.08. Arizona, at $15.15, has an above average hourly minimum wage within this group of states. California ($16.90) and Colorado ($15.16) both have higher hourly rates than Arizona. Nevada ($12), New Mexico ($12), and Utah ($7.25) have lower hourly rates than Arizona.
While the general minimum wage is $15.15 per hour in Arizona, there are several exceptions where workers may legally receive less than this amount:
People employed by their parents or siblings are exempt from state minimum wage legislation.
Babysitters employed on a casual basis in their employers home are exempt from state minimum wage legislation.
These employees are exempt from state minimum wage legislation.
Employees of a business that grosses less than $500,000 per year and is exempt from minimum wage under the Federal Fair Labor Standards Act (FLSA) is exempt from state minimum wage legislation.
While not exempt, these workers are not covered by state minimum wage legislation unless they are economically dependent on the business they are independent contracted for.
A few cities in Arizona have specific minimum wage exceptions as well:
Arizona's cost of living index for 2025 is 110.7, which places it as the 15th most expensive state to live in the United States.
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Assuming a standard 40-hour work week, the real wage in Arizona, adjusted for the state’s cost of living index of 110.7, is approximately $13.69 per hour. This means that while the nominal minimum wage is $15.15 per hour, the purchasing power of those earnings is lower due to Arizona's higher cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $547.43, translating to an annual purchasing power of $28,466.12 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
Arizona’s minimum wage is adjusted annually for inflation under Proposition 206, a 2016 voter-approved law that raised the wage and tied future increases to the Consumer Price Index.