TUCSON, Ariz. (KGUN) — Arizona's minimum wage workers will see more money in their paychecks starting Jan. 1, 2026, with the statewide rate increasing 45 cents to $15.15 per hour.
Workers in Tucson will receive an even larger increase bringing their minimum wage from $15 to $15.45 per hour. The city's higher rate stems from Tucson Proposition 206, which voters passed in 2021. Minimum wage will now increase annually based on the Consumer Price Index, while also rising automatically to match any higher federal or state minimum wage.
Tucson’s Minimum Wage Act applies to all employees who work at least five hours per pay cycle within the City of Tucson’s boundaries.
Jobe Repola, owner of Two Hands Fresh Corn Dogs on Broadway and Craycroft, supports paying his employees more.
"Restaurants work on such a thin margin that if you have many employees, let's say you have 200 employees, that's a big deal to you, especially if your margins are pretty thin. We have only four employees here so it's not gonna affect us as much," Repola said. "But the way I always look at it is if you can't afford to pay your employees 45 cents more an hour than you probably better look at some of your other costs because if 45 cents an hour is going to make a difference in somebody's life, then pay those people," Repola said.
One Two Hands worker said the extra money helps with general expenses and allows him to put more toward building a camper van. For others, the increase means not living paycheck to paycheck.
David Bradford, a University of Arizona alumnus, welcomes the wage increase.
"I think that's a great thing. I think there's a lot of misconception about the cost of living here and I think that it has gotten a lot for people. So I'm fully supporting this," Bradford said.
Bradford has firsthand experience with how extra money can help workers.
"I was a student rep for pharmacology and I got us all 10% raises and it definitely helped the students a lot," Bradford said.
Despite the wage increase, Repola said he won't raise prices at his restaurant.
"My costs won't go up, period. No. My cost will never go up unless my food costs go up. My food costs go up then my costs have to go up," Repola said.
Restaurant servers face a slight difference in the wage structure. Employers may pay up to $3.00 per hour less than the standard minimum wage, as long as total earnings with tips meet or exceed the minimum wage for all hours worked. Instead of $15.45 per hour, tipped workers could make $12.45 per hour.
Employers must also ensure that the 2026 minimum wage poster is properly displayed, as required by state law.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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Vanessa Gongora is KGUN 9's Westside reporter.. Vanessa fell in love with storytelling by growing up in sports. She was fascinated by how sports reporters go beyond the x's & o's to tell players' stories, and how sports bring people together, inspiring Vanessa to provide the same impact as a journalist. Share your story ideas and important issues with Vanessa by emailing vanessa.gongora@kgun9.com or by connecting on Facebook, Instagram, and X.
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