New laws take effect in 2026 in Arizona

Audio By Carbonatix

(The Center Square) – A new year means new laws, and that is certainly the case for Arizona in 2026.

On Jan. 1, the state’s minimum wage rose to $15.15 an hour. In Tucson, it is now $15.45 an hour. This is due to Tucson Proposition 206, an initiative that voters approved in 2021.

Also happening as of Jan. 1, the business property tax exemption was increased to $500,000, while property tax exemptions expanded to 100% for disabled veterans and their spouses. The individual income tax subtraction for unreimbursed adoption expenses also increased from $3,000 to $5,000 for a single individual or head of household. For a married couple filing a joint return, it is $10,000.

Meanwhile, some laws took effect in the final months of 2025.

“Without lines built into the law specifically, it’s always 90 days after the end of the session,” said Arizona Chamber of Commerce and Industry CEO Danny Seiden. “For the most part, the end of September is when our laws were in effect.”

One bill the Chamber supported was Senate Bill 1543. Also known as the Axon Bill, the measure allowed a proposed expansion of Axon’s Scottsdale headquarters to continue and prevented a voter referendum from local activists to block the project.

Axon manufactures various products, including tasers, body cameras and digital evidence management.

“They are a public safety company, homebred here in Arizona, and we don’t have a lot of those,” said Seiden.

Gov. Katie Hobbs, a Democrat, signed the bill in April 2025.

The Arizona Chamber of Commerce and Industry also supported legislation (House Bill 2704) that approved public funding for renovations at Chase Field.

The stadium, which is home to Major League Baseball's Arizona Diamondbacks, is public property in Maricopa County.

“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 to fund the stadium improvements,” said Seiden. “That’s continuing the public-private partnership going forward, and it was a win-win for everyone.”

The Coyotes were the National Hockey League franchise in Arizona before moving to Utah and changing its name.