Arizona’s minimum wage set to increase by 50 cents in January

With inflation for the year at 3.4%, Grand Canyon State workers will have to be paid at least $15.65 per hour at the beginning of 2027.

BY BRANDON BROWN/PHOENIX BUSINESS JOURNAL

Sep 12, 2026, 4:30 AM

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Arizona’s minimum wage will increase in 2027. (Yusnizam via Getty Images)

(Yusnizam via Getty Images)

Arizona’s minimum wage will increase in 2027, based off data released Friday morning from the U.S. Bureau of Labor Statistics.

The latest Consumer Price Index report showed inflation increasing 3.4% from August 2025 to August 2026, which means Arizona’s minimum wage will similarly adjust 3.4% to $15.65 per hour at the beginning of 2027.

The price of gas, which is increased dramatically because of the Iran War, was the main driver of the jump in the annual inflation rate.

In 2016, Arizona voters approved Proposition 206, which raised the minimum wage from $8.05 an hour to $10 and increased it in annual increments to $12 in 2020. Prop 206 then required the minimum wage to be adjusted annually for inflation based off August CPI numbers. The law requires the increased minimum wage be rounded to the nearest five cents.

The state’s minimum wage is now set at $15.15 per hour, meaning it will jump up 50 cents on Jan. 1, 2027.

This story is posted in partnership with Phoenix Business Journal. Click to read the full story.