The minimum wage in Texas is $7.25 per hour in 2026. Texas ties its minimum wage directly to the federal rate under Texas Labor Code Section 62.051, rather than setting an independent state amount. The federal minimum wage has not increased since July 24, 2009 — the longest wage freeze in U.S. history. As a result, the minimum wage in Texas has remained unchanged for over 16 years. Here is everything workers and employers need to know about Texas wage law in 2026.
Current Minimum Wage in Texas – 2026 Rates
| Worker Category | Rate (2026) |
|---|---|
| Standard minimum wage | $7.25 per hour |
| Tipped employee minimum cash wage | $2.13 per hour |
| Youth minimum (first 90 days, under age 20) | $4.25 per hour |
| Full-time annual earnings at minimum wage | $15,080 before taxes |
| Scheduled increase | None |
Why Texas Minimum Wage Matches the Federal Rate
Texas Labor Code Section 62.051 requires employers to pay employees “the federal minimum wage under Section 6, Fair Labor Standards Act of 1938.” Rather than setting a specific dollar amount, Texas law automatically mirrors whatever the federal rate is. Consequently, when the federal minimum wage rises, Texas’s minimum automatically increases without requiring separate state legislation. Since the federal rate has been frozen at $7.25 since 2009, Texas’s rate has remained the same throughout that period.
Texas is one of approximately 20 states that match the federal minimum wage floor. This contrasts significantly with states like California ($16/hour), New York ($16/hour), and Washington ($16.28/hour) that have set considerably higher minimums through their own legislation.
Texas Tipped Employee Minimum Wage Rules
Texas follows the federal tipped minimum wage rules under the Fair Labor Standards Act. Employers may pay tipped employees as little as $2.13 per hour in base wages — the federal tipped minimum cash wage — provided that tips bring the total hourly compensation to at least $7.25. Texas defines a tipped employee as any worker who regularly receives more than $20 per month in tips.
The employer’s obligation is clear: if an employee’s tips during a given workweek do not bring total compensation to at least $7.25 per hour, the employer must make up the shortfall. This rule is frequently violated in the restaurant and hospitality industries. Workers who believe their employer is failing to honor this obligation can file a wage claim with the Texas Workforce Commission or pursue civil action under the FLSA.
Can Texas Cities Set a Higher Minimum Wage?
No. Texas Local Government Code Section 109.001 expressly prohibits cities and counties from enacting minimum wage ordinances for private employers above the state or federal level. Houston, Dallas, Austin, and San Antonio have all attempted local wage floors in some form — but state law preempts these efforts consistently. As a result, every private-sector worker in Texas is subject to the same $7.25 floor regardless of city.
What $7.25 Per Hour Means in Practice
A full-time Texas worker at minimum wage working 40 hours per week for 52 weeks earns $15,080 gross annually before taxes. The 2026 federal poverty guideline for a single person is $15,650 — meaning a full-time minimum wage worker in Texas earns 96% of the poverty line. MIT’s Living Wage Calculator estimates a single adult in Texas needs approximately $21.77 per hour for basic necessities. Consequently, the minimum wage alone is insufficient for financial stability in most Texas markets without supplemental income or government assistance programs.
Where Texas Workers Earn Above Minimum Wage
Many Texas employers pay significantly above the minimum wage to compete in a tight labor market. Amazon warehouse associates in Texas start at $18–$20 per hour. Major healthcare systems including Baylor Scott and White, HCA, and Methodist typically start support staff at $17–$22 per hour. Texas state government and city governments have implemented internal wage floors above $20 per hour for many positions. Additionally, the energy industry in West Texas pays far above minimum wage for even entry-level field positions, driven by strong demand and remote location premiums.
For related Texas worker resources, see our guide to Texas unemployment benefits and our Texas paycheck calculator explainer.
Frequently Asked Questions About Minimum Wage in Texas
What is the minimum wage in Texas in 2026?
The minimum wage in Texas is $7.25 per hour in 2026. Texas ties its minimum wage directly to the federal rate under Section 62.051 of the Texas Labor Code and has not set a higher state minimum. The federal rate has been unchanged since July 24, 2009.
Will Texas minimum wage increase in 2026?
No. As of June 2026, no legislation has passed at the state or federal level to increase the Texas minimum wage above $7.25. No scheduled increase is in place at either level.
What is the tipped minimum wage in Texas?
Tipped employees in Texas can be paid a base cash wage of $2.13 per hour, provided their tips bring total compensation to at least $7.25 per hour. If tips fall short, the employer must make up the difference.
Can Texas cities set their own minimum wage?
No. Texas Local Government Code Section 109.001 prohibits cities and counties from setting minimum wage rates higher than the state or federal floor for private employers. No Texas city can legally mandate wages above $7.25 for private sector workers.
What is a living wage in Texas in 2026?
MIT’s Living Wage Calculator estimates a single adult in Texas needs approximately $21.77 per hour to cover basic necessities including food, housing, healthcare, and transportation. The $7.25 minimum wage represents about 33% of that living wage estimate.
