Arizona’s minimum wage will increase from $15.15 to $15.65 per hour effective January 1, 2027. 

Arizona law requires the minimum wage to be adjusted annually based on the increase in the Consumer Price Index for All Urban Consumers. The latest federal data show that consumer prices increased 3.4% from August 2025 to August 2026. Applying that increase and rounding to the nearest five cents produces a 50-cent increase for 2027.  

Employers should update their payroll systems and required workplace postings before the new rate takes effect. Tucson’s minimum wage will increase to $16.00 per hour, while Flagstaff’s rate will rise to $19.00. Employers must comply with the highest applicable state or local rate. 

For H-2A employers, the Arizona minimum wage is one of several potentially applicable wage floors. Employers must pay the highest required rate in effect, including any applicable adverse effect wage rate, prevailing wage, collective bargaining rate, federal or state minimum wage, or promised job-order rate. It remains uncertain what the 2027 adverse effect wage rate will be because of the trial court’s interim ruling in the UFW’s challenge to the Department of Labor’s Interim Final Rule.