Arizona tipped minimum wage 2026
The Arizona tipped cash wage is $11.70 per hour. Employers may take a tip credit of up to $3.00 per hour, provided the worker's cash wage plus tips reaches the state minimum of $14.70 per hour for every workweek. [DOL Tipped][AZ labor dept.]
Cash wage and tip credit
When tips fall short
If a worker's cash wage plus reported tips do not average to the Arizona minimum of $14.70 per hour over a workweek, the employer must pay the shortfall. The Tip Credit Checker tool runs the math at /tools/tip-credit. Under the 2021 DOL final rule, time spent on non-tip-producing work above 20 percent of the shift (or 30 continuous minutes) must be paid at the full minimum, not the tip-credited rate. [DOL FS-15]
Background
Indexed annually to the cost of living per Proposition 206 (2016). Tip credit capped at $3.00 per hour under A.R.S. section 23-363. Flagstaff and Tucson set higher local rates.