If you’re working in Arizona or planning to hire employees in 2025, knowing the minimum wage is essential. As of January 1, 2025, the statewide minimum wage is $14.70 per hour, while tipped employees must receive at least $11.70 per hour plus tips. Some cities go further — Flagstaff has set its wage at $17.85, and Tucson requires $15.00 for all workers. In this guide, we’ll break down the current rates, explain how Arizona’s system works, and compare it to other states and federal standards.
Quick Answer
As of January 1, 2025, the Arizona statewide minimum wage is $14.70 per hour.
For tipped employees, the base rate is $11.70 per hour, provided tips bring total pay to at least $14.70.
Some cities set higher local wages:
- Flagstaff: $17.85 per hour ($16.85 for tipped)
- Tucson: $15.00 per hour (flat for all workers)
Arizona Statewide Minimum Wage in 2025
Arizona voters approved Proposition 206 in 2016, which gradually raised wages and tied future increases to inflation. That’s why rates now adjust annually based on the Consumer Price Index (CPI).
- Standard minimum wage: $14.70/hr
- Tipped minimum wage: $11.70/hr, with employer tip credit of up to $3.00/hr
- Adjustment method: Indexed to CPI, ensuring wages keep pace with cost of living
For paycheck estimates, try the Arizona minimum wage calculator.
Cities With Higher Minimum Wages
Not every Arizona worker earns the same rate. Local ordinances have pushed wages higher in some cities.
- Flagstaff
- $17.85/hr for most employees
- $16.85/hr for tipped employees
- Adjusted annually under the Flagstaff Minimum Wage Act
- Tucson
- $15.00/hr for all employees, tipped or not
- Established under the Tucson Minimum Wage Act of 2021
Comparison Table
| Location | Regular Wage | Tipped Wage |
|---|---|---|
| Arizona | $14.70 | $11.70 |
| Flagstaff | $17.85 | $16.85 |
| Tucson | $15.00 | $15.00 |
How Arizona’s Minimum Wage Compares
- Federal minimum wage is still $7.25/hr (unchanged since 2009).
- Arizona’s rate is double the federal level, offering stronger pay protection.
- Compared to other western states, Arizona sits in the mid-to-high range, below California ($16+) but above Nevada ($12).
Why This Matters for Workers and Employers
- Workers: Higher wages mean stronger purchasing power, but cost of living in cities like Flagstaff offsets gains.
- Employers: Must comply with local rules. A restaurant in Tucson pays different wages than one in Mesa.
- Payroll planning: Compliance tools like a gross-to-net paycheck calculator help businesses stay accurate.
FAQs About Arizona Minimum Wage 2025
What is the Arizona minimum wage in 2025?
$14.70/hr statewide; $11.70/hr tipped.
Do Flagstaff and Tucson have higher minimum wages?
Yes. Flagstaff is $17.85/hr ($16.85 tipped). Tucson is $15.00/hr for all.
How often does Arizona adjust its minimum wage?
Every January, based on CPI.
Does the federal minimum wage apply in Arizona?
Only if higher than the state rate, which it isn’t.
Can cities set their own minimum wages?
Yes — Flagstaff and Tucson have already done so
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.