Texas minimum wage is $7.25 per hour in 2026. This has been the rate since July 24, 2009 — making it the longest wage freeze in American history. Texas follows the federal minimum wage under Texas Labor Code Section 62.051, without setting any higher state floor. Understanding Texas minimum wage law — its history, tipped employee rules, exemptions, and what workers actually earn in the market — matters for millions of Texas workers and employers.
Texas Minimum Wage 2026 – Current Rate
| Category | Rate (2026) | Notes |
|---|---|---|
| Standard minimum wage | $7.25/hour | Equal to federal minimum; unchanged since 2009 |
| Tipped employee base wage | $2.13/hour | Total must equal $7.25 with tips; employer makes up difference |
| Youth training wage (first 90 days) | $4.25/hour | Applies only to workers under age 20 |
| Annual income at minimum wage | $15,080 | Full-time 40 hrs/week before taxes |
| Federal poverty level (single adult) | $15,650 | Minimum wage earners at 96% of poverty line |
Texas Minimum Wage History
Texas has followed the federal minimum wage since the Texas Minimum Wage Act was enacted. Here is the history of the minimum wage rate in Texas, which mirrors the federal timeline:
| Effective Date | Minimum Wage |
|---|---|
| January 1, 1981 | $3.35/hour |
| April 1, 1990 | $3.80/hour |
| April 1, 1991 | $4.25/hour |
| October 1, 1996 | $4.75/hour |
| September 1, 1997 | $5.15/hour |
| July 24, 2007 | $5.85/hour |
| July 24, 2008 | $6.55/hour |
| July 24, 2009 | $7.25/hour |
| 2026 (current) | $7.25/hour |
The period from July 2009 to the present — over 16 years — represents the longest stretch without a federal minimum wage increase in American history. No increase has been enacted at the federal level despite multiple congressional proposals. Texas has not independently raised its minimum wage above the federal floor during this period.
Tipped Employees in Texas
Texas follows the federal tipped minimum wage rules under the Fair Labor Standards Act. Employers may pay tipped employees — workers who regularly receive more than $20 per month in tips — a base cash wage of $2.13 per hour. However, the employer must ensure that the employee’s total compensation (base wage plus tips) reaches at least $7.25 per hour for every hour worked. If tips are insufficient to bring the total to $7.25, the employer is legally required to make up the difference. This is called the tip credit. Employers who fail to ensure tipped employees reach the full minimum wage are in violation of the FLSA and can face back pay liability and penalties.
Texas Minimum Wage Exemptions
Not every worker in Texas is covered by minimum wage requirements. Key exemptions include:
- Exempt salaried employees — executive, administrative, and professional employees who meet salary ($684/week as of 2026) and duties tests under the FLSA
- Independent contractors — self-employed individuals who are not employees are not covered by minimum wage law
- Farm workers — certain agricultural employees on small farms are exempt from federal minimum wage
- Youth training wage — employees under 20 in their first 90 days of employment may be paid $4.25/hour
- Outside sales employees — salespeople who work primarily away from their employer’s place of business
Can Texas Cities Set Higher Minimum Wages?
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. Austin voters approved a paid sick leave ordinance in 2018, but the Texas Supreme Court struck it down in 2018, ruling that cities cannot regulate wages and benefits beyond state law. Houston, Dallas, San Antonio, and Austin have all faced similar legal barriers to local wage-setting for private employers. As a result, all private-sector Texas workers are subject to the same $7.25 floor regardless of which city they work in.
What Texas Workers Actually Earn in 2026
While $7.25 is the legal floor, market wages in Texas are substantially higher in most sectors due to labor competition. Large employers have set their own internal minimums well above the legal requirement — Amazon warehouse associates start at $18–$20 per hour, H-E-B starts warehouse and store associates at $15–$18 per hour, and Target pays $15 per hour minimum statewide. The tight labor markets in Midland and the Permian Basin push wages for even entry-level positions to $18–$25 per hour in the energy sector. Government employers in Texas have implemented internal floors typically between $18 and $22 per hour for front-line workers.
For related Texas worker resources, read our guides on how to calculate your Texas paycheck, Texas unemployment benefits, and our overview of My Texas Benefits programs. For official wage law information, visit the Texas Workforce Commission.
Frequently Asked Questions – Texas Minimum Wage
What is the minimum wage in Texas right now?
Texas minimum wage is $7.25 per hour as of 2026 — equal to the federal minimum wage. Texas does not have a state minimum wage higher than the federal floor. The rate has not changed since July 24, 2009, making it the longest freeze in U.S. history.
Does Texas have a higher minimum wage than the federal minimum?
No. Texas ties its minimum wage directly to the federal minimum wage under Texas Labor Code Section 62.051. The state does not set a separate, higher rate. Texas is one of approximately 20 states that match the federal minimum wage of $7.25.
What is the minimum wage history in Texas?
Texas adopted the federal minimum wage by reference when the Texas Minimum Wage Act was enacted. Texas was paying $3.35/hour in 1981, $4.25 in 1991, $5.15 in 1997, and $7.25 since July 2009 — each change matching the federal rate. Texas has never independently raised its minimum wage above the federal level.
Can Texas raise its minimum wage above $7.25?
Yes, the Texas Legislature can pass a law setting a state minimum wage higher than the federal rate. However, as of June 2026, no such legislation has passed. Texas also prohibits cities and counties from setting local minimum wages for private employers above the state or federal level.
What would a $15 minimum wage mean for Texas workers?
MIT’s Living Wage Calculator estimates a single adult in most Texas counties needs approximately $18 to $35 per hour to cover basic necessities depending on location and family size. A $15 minimum wage would significantly close the gap between the current $7.25 rate and actual cost of living — but no $15 federal minimum wage has been enacted as of 2026.
