Texas Minimum Wage 2026: $7.25 per Hour, Tied to the Federal Rate
Texas minimum wage is $7.25 per hour in 2026 because state law adopts the federal rate; the tipped cash wage is $2.13, no increase is scheduled, and cities cannot set their own rates.
The Texas minimum wage is $7.25 per hour in 2026. The Texas Minimum Wage Act adopts the federal minimum wage set by the Fair Labor Standards Act, so the state rate has been $7.25 since the last federal increase on July 24, 2009. There is no scheduled increase, no cost-of-living adjustment, and no city or county in Texas may set a higher rate for private employers. The tipped cash wage is the federal $2.13 with a tip credit of up to $5.12. Texas is one of 20 states still at the federal floor; see how it compares in our minimum wage by state guide.
Current Texas Minimum Wage
Chapter 62 of the Texas Labor Code, the Texas Minimum Wage Act, sets the state minimum wage equal to the federal rate under the FLSA. The Texas Workforce Commission confirms the rate is $7.25 per hour, effective July 24, 2009, and the US Department of Labor's state table lists Texas at $7.25 as of July 1, 2026. If Congress raises the federal minimum wage, the Texas rate rises automatically on the same date.
In practice, the market rate for entry-level work in most Texas metros is well above $7.25. Large employers, fast food chains and warehouses in Dallas, Houston, Austin and San Antonio routinely advertise starting pay of $12.00 to $18.00. But the legal floor for every non-exempt employee remains $7.25, and it is the figure that matters for tip credits, overtime calculations and wage claims.
Texas Minimum Wage vs Federal Minimum Wage
| Rate | Amount | Notes |
|---|---|---|
| Federal minimum wage | $7.25 | Since July 24, 2009 |
| Texas minimum wage | $7.25 | Adopts the federal rate by statute |
| Local rates | None | State law preempts local minimum wages for private employers |
| Neighboring states | Arkansas $11.00, New Mexico $12.00, Oklahoma $7.25, Louisiana $7.25 | For employers with staff across state lines |
The Texas rate is identical to the federal rate, so the only difference between the two is which agency handles a claim. Employees covered by the FLSA file with the federal Wage and Hour Division; the small number of workers covered only by the Texas act file with the Texas Workforce Commission.
Tipped Minimum Wage in Texas
Texas follows the federal tip credit. Employers may pay tipped employees a cash wage of $2.13 per hour and count up to $5.12 per hour in tips toward the $7.25 minimum. The Texas Workforce Commission notes that "with specified restrictions, employers may count tips and the value of meals and lodging toward minimum wage."
The restrictions matter. To take the credit an employer must:
- Tell the employee in advance that a tip credit will be taken and how much.
- Let the employee keep all tips, except for a valid tip pool among employees who customarily receive tips.
- Make up the difference in any workweek where cash wage plus tips falls below $7.25 for every hour worked.
- Pay the full $7.25 for time spent on non-tipped duties that exceed the federal limits.
A server working 30 hours in a slow week who earns $120 in tips has an effective rate of $6.13 ($2.13 plus $4.00 in tips per hour), so the employer owes an additional $1.12 per hour, or $33.60, to reach the minimum.
Texas Minimum Wage Increase Schedule
Texas has no schedule. The state rate has tracked the federal minimum wage since the Texas Minimum Wage Act was amended to adopt it, and the federal rate has been frozen since 2009. Bills to set a higher state minimum wage are filed in most legislative sessions but have not advanced.
| Effective date | Federal and Texas minimum wage |
|---|---|
| July 24, 2007 | $5.85 |
| July 24, 2008 | $6.55 |
| July 24, 2009 | $7.25 |
| 2010 to 2026 | $7.25, no change |
Adjusted for inflation, $7.25 in 2009 is worth roughly $10.80 in 2026 dollars, which is why so many Texas employers pay above the legal floor to fill positions.
Local Minimum Wages in Texas
There are no local minimum wages for private employers in Texas. Section 62.0515 of the Labor Code provides that the state minimum wage supersedes any local wage ordinance, so Austin, Dallas, Houston and San Antonio cannot set their own rates. Cities may set minimum pay for their own employees and for contractors doing city work; Austin and Houston, for example, pay municipal workers well above $15.00, and some city contracts carry a living wage clause. Those requirements apply only to the public sector and to companies bidding on that work.
Who Is Covered and Who Is Exempt
The Texas Minimum Wage Act applies to employees who are not covered by the FLSA, while the FLSA itself covers the large majority of workers. Groups excluded from the state act include:
- Employees covered by the federal FLSA (they are protected by the federal act instead, at the same rate).
- Employees of religious, educational, charitable and nonprofit organizations in certain roles.
- Professionals, salespersons and public officials.
- Domestic workers in private homes.
- Certain young workers and students under specific programs.
- Family members employed by the business.
- Employees of amusement and recreational establishments that operate seasonally.
- Workers in dairying and livestock production.
- Employees of sheltered workshops.
- Non-agricultural employers not liable for state unemployment contributions.
Exempt executive, administrative and professional employees must meet the federal duties tests and the $684 weekly salary threshold; Texas has no higher state threshold. See exempt vs non-exempt employees. Texas also allows the federal youth minimum wage of $4.25 per hour for the first 90 consecutive calendar days of employment for workers under 20.
Overtime and the Minimum Wage
Texas has no state overtime law, so the federal rule applies: 1.5 times the regular rate for hours over 40 in a workweek, with no daily overtime. Read the state-by-state details in overtime pay laws in the US.
A minimum wage employee working 45 hours in a week earns:
| Hours | Rate | Pay |
|---|---|---|
| 40 regular hours | $7.25 | $290.00 |
| 5 overtime hours | $10.875 | $54.38 |
| Weekly gross pay | $344.38 |
For a tipped employee the overtime rate is calculated on the full $7.25 minimum wage, not on the $2.13 cash wage, so the employer's cash obligation for an overtime hour is $10.875 minus the $5.12 tip credit, or $5.755. The overtime calculator does the arithmetic for any rate.
What a Minimum Wage Worker Earns in Texas
| Period | Hours | Gross pay at $7.25 |
|---|---|---|
| Week | 40 | $290.00 |
| Month (average) | 173.33 | $1,256.64 |
| Year | 2,080 | $15,080.00 |
A full-time minimum wage worker in Texas earns $15,080 a year before taxes, which is below the federal poverty guideline for a household of two. Texas has no state income tax, so deductions are federal income tax and FICA; see gross pay vs net pay. The salary to hourly calculator converts any annual salary to an hourly equivalent for comparison.
Employer Compliance Checklist
- Post the federal minimum wage poster and the Texas Payday Law poster from the Texas Workforce Commission.
- Pay at least $7.25 for every hour worked, including waiting time, training and short breaks under 20 minutes.
- If you take a tip credit, give written or oral notice first and reconcile tips against the minimum wage every workweek.
- Pay overtime on the full minimum wage, not the cash wage, for tipped staff.
- Keep time records for at least two years and payroll records for three; use a time card calculator to check weekly totals before payroll.
- Confirm exempt employees meet the federal duties tests and the $684 weekly salary floor.
- Review the Texas labor law guide for the Texas Payday Law, which governs pay frequency and final paychecks.
Frequently Asked Questions
What is the minimum wage in Texas in 2026?
$7.25 per hour, the same as the federal minimum wage. Texas law adopts the federal rate automatically.
Is Texas minimum wage going up in 2027?
No increase is scheduled. The Texas rate only changes if Congress raises the federal minimum wage or the Texas Legislature amends the Texas Minimum Wage Act.
What is the tipped minimum wage in Texas?
$2.13 per hour in cash, with a tip credit of up to $5.12. Tips must bring the employee to at least $7.25 for every hour worked in the workweek.
Does Austin, Dallas or Houston have a higher minimum wage?
No. Texas law preempts local minimum wages for private employers. Cities can only set pay for their own employees and contractors.
Is the Texas minimum wage $15?
No. The legal minimum is $7.25. Many employers pay $12.00 to $18.00 to compete for staff, but that is a market rate, not a legal requirement.
Can a Texas employer pay less than $7.25?
Only in narrow cases: the federal youth wage of $4.25 for the first 90 days for workers under 20, and certain workers excluded from both the FLSA and the Texas act. For everyone else, $7.25 is the floor.
How do I file a wage claim in Texas?
Employees covered by the FLSA file with the US Department of Labor's Wage and Hour Division. Employees covered only by the Texas Minimum Wage Act can file a wage claim with the Texas Workforce Commission under the Texas Payday Law within 180 days of the wages becoming due.
Do Texas minimum wage rules apply to remote employees working from Texas?
Yes. The minimum wage that applies is the one in the state where the employee physically works. A remote worker in Texas is owed at least $7.25, while the same company's remote worker in Arkansas is owed $11.00.
Sources
- Texas Workforce Commission: Texas Minimum Wage Law
- Texas Labor Code, Chapter 62 (Minimum Wage)
- US Department of Labor: State Minimum Wage Laws
- US Department of Labor: Minimum Wages for Tipped Employees
Reviewed September 2026
Texas tracks the federal minimum wage, which has not changed since 2009. Confirm the current figure with the Texas Workforce Commission or the US Department of Labor before setting pay rates.
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