Arizona workers often hear two terms—minimum wage and living wage—but they aren’t the same. The minimum wage is the legally required hourly pay floor, set at $14.70 statewide in 2025. The living wage, on the other hand, is an estimate of what it actually takes to cover essentials like housing, groceries, healthcare, and childcare.
In reality, the living wage for a single adult in Phoenix is about $25.73/hour, nearly double the legal minimum. Families with children may need $30–$35/hour per adult to stay afloat. This gap shows why many Arizonans struggle to make ends meet despite steady jobs, and why understanding both figures is critical for workers, employers, and policymakers.
Quick Insight
Arizona’s minimum wage is the legal hourly rate employers must pay, currently $14.70/hour statewide in 2025. The living wage is an estimate of what workers need to cover basic expenses like housing, food, and healthcare. In Phoenix, for example, a living wage for a single adult is about $25.73/hour, far higher than the legal minimum.
What Is the Minimum Wage in Arizona?
- As of January 1, 2025, Arizona’s statewide minimum wage is $14.70/hour.
- Tipped employees earn $11.70/hour in base pay, with tips expected to make up the difference.
- Some cities have higher rates:
- Flagstaff: $17.85/hour
- Tucson: $15.00/hour
Arizona adjusts its minimum wage each year based on inflation, keeping it above the federal rate of $7.25/hour.
What Is the Living Wage in Arizona?
A living wage reflects the real cost of living, not just a legal pay floor. It is calculated using expenses like housing, groceries, transportation, childcare, and healthcare.
According to the MIT Living Wage Calculator (2025 estimates):
- Single adult in Arizona: ~$24.42/hour
- Single adult in Phoenix: ~$25.73/hour
- Family of four (two working adults, two children): ~$30–$35/hour per adult
A study cited by AZCentral found that a comfortable living wage in Arizona can be as high as $40/hour ($83,699/year) depending on lifestyle and location.
Side-by-Side Comparison
| Category | Hourly Rate (2025) | Notes |
|---|---|---|
| State Minimum Wage | $14.70 | Legal floor for most Arizona workers |
| Tipped Minimum Wage | $11.70 + tips | Employers may apply up to $3 tip credit |
| Flagstaff Minimum Wage | $17.85 | Higher due to local ordinance |
| Tucson Minimum Wage | $15.00 | Higher local standard |
| Phoenix Living Wage (MIT) | $25.73 | Needed for single adult basic expenses |
| Family of Four (AZ avg.) | $30–$35 per adult | To cover childcare, housing, healthcare |
Why the Difference Matters
- Minimum wage = legal standard → ensures employers pay a baseline.
- Living wage = economic reality → shows what’s needed for financial stability.
- Many Arizona workers earning minimum wage—especially in service or tipped jobs—struggle to meet housing and childcare costs.
For example, a server in Phoenix earning $11.70 + tips may technically meet the minimum wage, but is still far below the living wage required to cover rent and groceries in the metro area.
👉 To understand how your earnings stack up against real expenses, use the Arizona Living Wage Calculator or the Arizona Cost of Living Calculator.
How Arizona Compares Nationally
- Arizona’s minimum wage is among the highest in the U.S. due to its inflation adjustments.
- However, the gap between minimum and living wage in Arizona is larger than in some states, because of rising housing, childcare, and healthcare costs.
- Cities like Flagstaff lead with stronger wage ordinances, narrowing the gap slightly.
FAQs on Arizona Living Wage vs Minimum Wage
What is the minimum wage in Arizona in 2025?
$14.70/hour statewide, higher in Flagstaff ($17.85) and Tucson ($15.00).
What is the living wage for a single adult in Phoenix?
About $25.73/hour according to MIT’s Living Wage Calculator.
Can someone live on minimum wage in Arizona?
Not comfortably—minimum wage covers basic income but falls short of actual living costs.
Why is the living wage so much higher?
It includes rent, food, transportation, healthcare, and childcare—expenses that rise faster than minimum wage.
Do Arizona cities set their own minimum wages?
Yes. Flagstaff and Tucson have ordinances above the state level.
Harry is the creator of ArizonaPaycheckCalculator.com, a trusted resource for accurate and easy-to-use payroll and tax calculators. With a focus on clarity and precision, Harry helps Arizona residents understand their take-home pay, deductions, and withholdings. Dedicated to making complex calculations simple, he combines financial knowledge with user-friendly tools to save users time and confusion.