Last Updated: October 29, 2027
Since the introduction of Proposition 206 on April 1, 2022, the City of Tucson has adopted its own minimum wage ordinance separate from the Arizona state minimum wage law.
In Accordance with “Tucson’s Minimum Wage Law”, the minimum wage in Tucson, Arizona, increased to $15.45 per hour in 2026. This rate took effect on January 1, 2026, and will remain in place through the remainder of the year.
Starting January 1, 2026, and thereafter, the minimum wage rates are to be adjusted annually on January 1 each year to reflect changes in inflation. At this time, there are no official updates announced for the minimum wage rate in 2027 by the City of Tucson. However, it is estimated to be $16.00 per hour starting January 1, 2027, according to calculations from the Western Growers Association.
Minimum Wage in Tucson, Arizona
As of January 1, 2026, the current minimum wage rate in Tucson is $15.45 per hour.
As per the Tucson Minimum Wage Law, tipped employees in Tucson, Arizona, are also entitled to receive $12.45 per hour. Employers can take a maximum tip credit of $3.00 per hour worked, provided employees’ total earnings meet the city's minimum wage requirement.
Below is a historical chart showing changes to Tucson’s minimum wage throughout recent years:
Tucson Minimum Wage - Historical Rates Table
Year |
Tucson Minimum Wage |
Tucson Tipped Minimum Wage |
Tucson Tip Credit |
| 2027 | $16.00* | $13.00* | $2.00 |
| 2026 | $15.45 | $12.45 | $2.00 |
| 2025 | $15.00 | $12.00 | $2.00 |
| 2024 | $14.35 | $11.35 | $2.00 |
| 2023 | $13.85 | $10.85 | $2.00 |
| 2022 | $13.00 | $10.00 | $2.00 |
* Estimated increase based on calculations from Western Growers Association
Who Is Covered Under the Tucson Minimum Wage Law?
Employees entitled to the Tucson minimum wage include those who:
- Perform at least 5 hours of work within a work week in any given calendar year; and
- Perform work within the Tucson city limits
- Are currently or have been employed by an employer regardless of:
- The employer’s location
- An employee’s immigration status
Additionally, hours worked are defined as any time spent:
- Undergoing a security screening immediately before or following a working shift
- Performing work on employer premises
- Performing work on a designated worksite
- Logged in to an employer-provided computer program, phone application, or similar device to perform work
All employers, regardless of size, must pay their employees at least the current Tucson minimum wage for all hours worked, regardless of the employee’s compensation method (hourly, salary, piece rate, etc.). Note that full-time, part-time, and temporary employees are covered equally.
Tucson Minimum Wage Exceptions
While most employers operating within Tucson must follow the local minimum wage ordinance, certain exceptions apply.
The following employees working within the Tucson city limits do not qualify for the local minimum wage rate:
- Federal government employees (governed by the federal minimum wage instead)
- Arizona state government employees (governed by the Arizona statewide minimum wage instead)
- Tribal entities
Additionally, employees performing babysitting services at their employer’s home on a casual basis are NOT considered employees under Proposition 206.
How the Tucson Minimum Wage is Determined
As with many jurisdictions for state and local minimum wage laws, Tucson adjusts its minimum wage annually based on the Consumer Price Index (CPI). The CPI measures the average change over time in prices paid by urban consumers for a market basket of consumer goods and services (food, fuel, housing, clothing, etc.).
Previously, Tucson’s minimum wage was calculated based on an annual schedule that increased the rate, starting from $13.00 in 2022 when the minimum wage law was first enacted, to $15.00 in 2025.
Since January 1, 2026, the minimum wage has been adjusted based only on CPI increases.
Compliance Requirements for Tucson Employers
Tucson employers must stay up-to-date with the latest requirements, especially when annual adjustments take effect. It's also wise for Tucson employers to understand all the unique Tucson payroll laws that can affect the strategy, process, or payment policies of the business.
Here’s a quick checklist employers can use to meet the specific local wage requirements:
Track Where Work is Performed
Employers should monitor where employees are physically working to determine whether Tucson’s local minimum wage applies. Because coverage is based on work performed within the city limits, not just business location, accurate tracking helps ensure employees are paid in accordance with Tucson’s wage requirements.
Post the Required Tucson Labor Notices
Tucson employers must display the official city minimum wage notice in a visible, accessible area for the employees. Keeping posters current is essential, as outdated notices may lead to compliance issues. Many employers turn to Labor law poster services to stay aligned with the annual updates.
Keep Detailed Payroll Records
Maintaining and managing employee records effectively, specifically payroll records, is essential for compliance and audit readiness. Under Tucson regulations, employers are required to retain payroll records for each employee for a minimum of 4 years, including hours worked and wages paid.
Know the Tucson-Specific Compliance Requirements
When processing payroll in Tucson, employers should note that there are requirements that go beyond Federal and state laws.
For easy compliance and management, employers should consider a modern, cloud-based payroll solution that can handle processing for multiple tax jurisdictions and local payroll requirements.
Frequently Asked Questions
Managing Local Arizona Wage Laws
Knowing the local labor laws is essential for all employers, as specific ordinances will override state laws, with minimum wage being no exception. For example, accidentally compensating an employee the Arizona state minimum wage instead of the Tucson rate may seem like an honest mistake, but violations can result in your business paying out up to $100 per affected employee.
Employers should also note that there is another specific law for the Flagstaff Minimum Wage.
Protecting your organization against compliance violation risks should be a top priority. Schedule a compliance check-up if your business needs help staying compliant with Tucson, Arizona, or other labor laws.
