Arizona · rules verified
Arizona Overtime Calculator
Arizona sets its own minimum wage — $15.15 in 2026 — but leaves overtime entirely to the FLSA. On taxes it went further than most: since tax year 2025 Arizona subtracts the same overtime amount you deduct on your federal return.
Arizona workweek
Bonus, shift pay & state options
$1,323.85
50 h worked · 10 h at 1.5×
| Straight-time pay (all hours + bonus) | $1,203.50 |
|---|---|
| Overtime premium at 1.5× | $120.35 |
| Double-time premium at 2× | $0.00 |
| Total for the week | $1,323.85 |
Your no-tax-on-overtime deduction
Arizona (2026): allows the same deduction — $6,258.20 off state taxable income.
How Arizona got to conformity
Governor Hobbs’ Executive Order 2025-15 put the tips and overtime subtractions on the 2025 Form 140 before any statute existed, and ADOR warned filers they might have to amend if the Legislature disagreed. After earlier 2026 budget and conformity bills were vetoed, HB 4168 became Laws 2026, chapter 140 on June 13, 2026.
The enacted text (A.R.S. § 43-1022, paragraph 32) subtracts “the amount of qualified overtime compensation … that is deducted under section 225” for tax years beginning after 2024, to the extent it was not already excluded. Because it borrows the federal amount, the $12,500/$25,000 caps and the income phase-out carry straight over.
Minimum wage and the Industrial Commission
Proposition 206 (2016) gave the Industrial Commission of Arizona the job of resetting the wage each January 1. The path ran from $10.00 in 2017 to $15.15 in 2026. The Commission published the 2027 rate in September 2026, but its notice refused our requests, so from January 1, 2027 the calculator asks you for the posted figure instead of guessing.
For unpaid wages the Commission uses an Unpaid Wage Claim Form that must name the employer’s legal name as it appears on a pay stub or tax form, be signed, and attach evidence of hours and pay. Minimum wage, earned paid sick time and retaliation complaints go through a different process.
No daily overtime here
Arizona has no daily trigger, so a 12-hour shift inside a 36-hour week earns nothing extra. Overtime starts only with the 41st hour.
Example week
At Arizona’s median wage of $24.07 an hour, five 10-hour days look like this.
| Day | Hours | Regular | 1.5× | 2× |
|---|---|---|---|---|
| Mon | 10 | 10 | 0 | 0 |
| Tue | 10 | 10 | 0 | 0 |
| Wed | 10 | 10 | 0 | 0 |
| Thu | 10 | 10 | 0 | 0 |
| Fri | 10 | 0 | 10 | 0 |
Minimum wage path
| 2016 | 2018 | 2020 | 2022 | 2024 | Now | 2027 |
|---|---|---|---|---|---|---|
| 8.05 | 10.50 | 12.00 | 12.80 | 14.35 | 15.15 | TBA |