The minimum wage in Arizona increased by $0.15 in January 2021, from $12.00 (2020) to $12.15 per hour in 2021. This is $4.95 higher than the federal minimum wage of $7.25 per hour.
Arizona is just one of 29 US states to have a higher minimum wage than the federal wage. The Arizona minimum wage 2021 is $12.15 and is calculated via many different measurements, mainly the consumer price index.
In November 2016, Arizona voters approved Proposition 206, referred to as the Fair Wages and Healthy Families Act. This meant that the new minimum wage of $10.00 per hour became effective January 1st, 2017. Since then, the minimum wage in Arizona has increased consistently per year in January.
If you would like to see the history of the Arizona minimum wage over the years, we have created a bar graph showing you the minimum wage each year and also a convenient PDF you can download. It is located at the bottom of this page.
Did the Arizona Minimum Wage Go Up?
The graphic below highlights the Arizona minimum wage over the past several years. The minimum wage did go up in 2021 from $12.00 per hour (in 2020) to $12.15 in 2021.
Arizona Minimum Wage 2021
Just because the Arizona minimum wage in 2021 is $12.15, does not mean that this applies to all industries and job roles within the state, there are a few exceptions that have been highlighted by the Industrial Commission of Arizona Minimum Wage Poster. Those under the exemptions do not have to be paid the minimum wage in Arizona, these include:
- Those employed by a parent or sibling.
- Anyone who is performing babysitting services in the employer’s home on a casual basis.
- Any person employed by the State of Arizona or the US Government.
- Anyone employed by a small business that grosses less than $500,000 in annual revenue, and is exempt from paying under section 206 (check the Industrial Commission of Arizona Government website if unsure whether your business qualifies).
- For any employee who receives regular tips or gratuities, an employer may pay tipped employees a maximum wage of $3.00 per hour less than the official Arizona minimum wage of $12.15, meaning tipped employees will receive a maximum of $9.15 per hour. However, this is only allowed if the employer can prove via records that each week when adding tips received to the wages paid, the employee will receive no less than the minimum wage for all hours worked.
Arizona has one of the highest minimum wages out of all 50 US states, matching states such as Colorado and Maine. If you are interested in seeing the top 10 highest state minimum wage rates by state, then head over to our page that is dedicated to this.
Are you interested in starting a company in Arizona?
If you would like to register a new business in Arizona, check out our ultimate guide on How to Register a Business in Arizona.
Over the past few years, Arizona has seen a considerable increase to its minimum wage, with the most significant increase happening between 2016 and 2017 when the minimum wage increased from $8.05 to $10.00, a healthy 24.2% increase.
The industrial commission of Arizona has a labor department that should be checked periodically for the most current updates on their minimum wage program.
There are many interesting facts about Arizona that you probably haven’t heard of. Feel free to check out a comprehensive list of them that also includes some very important economic facts if you are looking to start your own business or franchise or get a job in the state.
Arizona Minimum Wage History
The table below provides the history of Arizona’s minimum wage over the years since 2008. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents.
|State||Wage||Year||$ Wage Increase||% Increase|
|Arizona Minimum Wage 2021||$12.15||2021||$0.15||1.25%|
|Arizona Minimum Wage 2020||$12.00||2020||$1.00||9%|
|Arizona Minimum Wage 2019||$11.00||2019||$0.50||4.8%|
|Arizona Minimum Wage 2018||$10.50||2018||$0.50||5%|
|Arizona Minimum Wage 2017||$10.00||2017||$1.95||24.2%|
|Arizona Minimum Wage 2016||$8.05||2016||$0||0%|
|Arizona Minimum Wage 2015||$8.05||2015||$0.15||1.9%|
|Arizona Minimum Wage 2014||$7.90||2014||$0.10||1.3%|
|Arizona Minimum Wage 2013||$7.80||2013||$0.15||1.9%|
|Arizona Minimum Wage 2012||$7.65||2012||$0.30||4.1%|
|Arizona Minimum Wage 2011||$7.35||2011||$0.10||1.4%|
|Arizona Minimum Wage 2010||$7.25||2010||$0||0%|
|Arizona Minimum Wage 2009||$7.25||2009||$0.30||4.3%|
|Arizona Minimum Wage 2008||$6.90||2008||$0||0%|
Arizona minimum wage history for the past 10+ years – downloadable PDF below
Arizona Minimum Wage History – Downloadable PDF
EIN Number Arizona
As an Arizona business owner and employer, or someone that is looking to register an LLC or an incorporated company in Arizona with the goal of hiring employees, now, or in the future, you will need to have an Arizona EIN number.
An EIN is also known as an Employer Identification Number and is issued by the internal revenue service (IRS). We have created a guide on how to get your Arizona EIN with the IRS, and it includes links to the appropriate sources and forms and the differences between whether you are a U.S. citizen or foreign national applying for an Arizona EIN.