Arizona's minimum wage in 2025 is $14.70 per hour for most areas outside of Flagstaff and Tucson. For tipped employees in these areas, the minimum wage is $11.70 per hour, with a tip credit allowance of up to $3.00 per hour if the employee's combined tips and wages meet or exceed $14.70 per hour. Local variations apply:
- In Flagstaff, the minimum wage is higher at $17.85 per hour, with tipped employees earning $16.85 per hour and a tip credit of $1.00.
- In Tucson, the minimum wage is $15.00 per hour, including tipped employees, with a tip credit of $3.00.
These rates took effect on January 1, 2025, and are part of Arizona's ongoing minimum wage increases linked to the cost of living.