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State and local minimum wage is set to increase in 2027

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AZPM
Various denominations of U.S. currency.

Arizona’s minimum wage is set to increase in 2027.

The increase comes following an August inflation report from the US Bureau of Labor Statistics showing a 3.4% national increase in consumer prices so far this year.

According to Arizona’s Fair Wages and Healthy Families Act, the state’s minimum wage increases every year in proportion to the August inflation report. Workers statewide can therefore expect a 50 cent bump to the minimum wage in 2027.

Tucson has its own minimum wage adjustment law and will see a 55 cent increase, bringing its minimum wage to 16 dollars per hour next year.

This year’s increase is larger than any since 2022, when high levels of inflation raised the Arizona minimum wage by more than a dollar. One factor in this year’s higher rate is the rise in fuel prices caused by the war in Iran.

Kieran Hadley is a journalist and producer covering politics and government in Tucson and across Southern Arizona.