by Phoenix, AZ – Arizona entered 2026 with a slate of new laws already in effect, impacting workers’ paychecks, tax policy, veterans’ benefits, and major business and sports developments. From higher minimum wages to expanded tax exemptions and late-2025 legislation tied to economic development, the changes reflect a year of significant policy shifts across the state.
What Changed on January 1, 2026
Several new laws officially took effect Jan. 1, 2026, marking immediate changes for workers, property owners, and families across Arizona. The most widely felt change is a statewide minimum wage increase, alongside expanded tax relief measures for veterans, small businesses, and adoptive families.
These updates build on legislation approved by voters and lawmakers in recent years, with some additional measures taking effect in the final months of 2025.
Minimum Wage Increase Across Arizona
Arizona’s minimum wage rose statewide at the start of the new year.
- Statewide minimum wage: $15.15 per hour
- Tucson minimum wage: $15.45 per hour
The higher Tucson rate stems from Proposition 206, a voter-approved initiative passed in 2021, which mandates annual local wage adjustments tied to inflation.
For hourly workers, the increase represents a modest but meaningful boost as the cost of living continues to rise across the state.
Expanded Tax Exemptions and Financial Relief
Several tax-related changes also took effect on Jan. 1, delivering relief to specific groups.
Key Tax Changes Now in Effect
- Business property tax exemption increased to $500,000
- Property tax exemption expanded to 100% for disabled veterans and their spouses
- Adoption expense tax subtraction increased
- $5,000 for a single filer or head of household
- $10,000 for a married couple filing jointly
These changes aim to reduce financial strain on small businesses, support military families, and help offset the high costs associated with adoption.
Timeline of Laws Passed in 2025
Not all current laws began on January 1. Several measures approved during the 2025 legislative session took effect earlier, following Arizona’s standard timeline.
“Without lines built into the law specifically, it’s always 90 days after the end of the session,” said Danny Seiden, CEO of the Arizona Chamber of Commerce and Industry.
“For the most part, the end of September is when our laws were in effect.”
Axon Bill Clears Way for Scottsdale Expansion
One of the most notable 2025 laws was Senate Bill 1543, commonly referred to as the Axon Bill.
The legislation allowed Axon, a Scottsdale-based public safety technology company, to move forward with a major expansion of its headquarters. The bill also prevented a voter referendum effort that sought to block the project.
Axon manufactures tasers, body cameras, and digital evidence management systems used by law enforcement agencies worldwide.
“They are a public safety company, homebred here in Arizona, and we don’t have a lot of those,” Seiden said.
Gov. Katie Hobbs, a Democrat, signed the bill in April 2025.
Public Funding Approved for Chase Field Renovations
Another major piece of legislation supported by the Arizona Chamber was House Bill 2704, which approved public funding mechanisms for renovations at Chase Field in Phoenix.
- Chase Field is publicly owned by Maricopa County
- Home to MLB’s Arizona Diamondbacks
The bill allows the team to reinvest certain sales tax and stadium-generated revenues back into facility improvements.
“After what happened with the Coyotes and Utah, we got to work and passed a law that allows for them to recapture some of the sales tax and other revenue generated from within the stadium district,” Seiden said.
“That’s continuing the public-private partnership, and it was a win-win for everyone.”
The Arizona Coyotes, the state’s former NHL franchise, relocated to Utah and rebranded, heightening concerns about losing additional professional sports teams.
Why These Laws Matter
Together, the 2026 changes signal Arizona’s focus on:
- Worker wages and inflation adjustment
- Economic competitiveness for businesses
- Support for veterans and families
- Retaining major employers and sports franchises
Business groups argue the measures help stabilize Arizona’s economy, while critics continue to debate the long-term impacts of public funding and wage mandates.
More details on legislative priorities can be found through the Arizona Chamber of Commerce and Industry, which tracks policy changes affecting the state’s economy
Conclusion
As 2026 begins, Arizona residents are already seeing the effects of new laws shaping wages, taxes, and development statewide. With more legislative debates ahead this year, these early changes set the tone for how the state balances economic growth, affordability, and public investment.
How do these new Arizona laws affect you or your business? Share your experiences in the comments below.
