Texas Minimum Wage 2026: $7.25/hr — What Texas Workers Need to Know

Texas minimum wage is $7.25 per hour — the federal rate that has not changed since 2009. Texas is one of five states with no state minimum wage law at all, meaning the federal Fair Labor Standards Act is the only wage floor. Texas is also one of the states that preempts local governments from setting higher minimum wages, so cities like Houston, Dallas, Austin, and San Antonio cannot establish their own rates.

What Is the Texas Minimum Wage in 2026?

$7.25 per hour. Texas has not enacted a state minimum wage law, so the federal rate under the Fair Labor Standards Act applies by default. The Texas Workforce Commission enforces wage claims but does not set wage rates.

Texas is one of five states (along with Alabama, Louisiana, Mississippi, South Carolina, and Tennessee) with no state minimum wage statute. Workers in these states are protected only by the federal FLSA minimum wage of $7.25/hr. Texas also preempts local minimum wage laws under Texas Labor Code Chapter 212.

How Texas's Local Preemption Law Works

Texas law goes further than simply declining to set its own minimum wage — it actively bars cities and counties from setting one either. Under Texas Labor Code Chapter 212, local governments cannot pass an ordinance requiring private employers to pay more than the state/federal floor of $7.25/hr, no matter how high the local cost of living runs.

That preemption applies statewide, including in the four Texas metro areas most often cited as having a high cost of living: Dallas, Houston, Austin, and San Antonio. In many other states, a large city facing high rents and living costs can pass a local minimum wage ordinance that sits above the state rate — Seattle, Denver, and Chicago all do this. Texas cities have no such option. Whatever local officials might want to pay the lowest-wage workers in their jurisdiction, they are legally barred from mandating it through a citywide minimum-wage ordinance.

Texas is not alone in this approach. Most of the states with no state minimum wage law of their own also preempt local ordinances, including Oklahoma, Louisiana, and Mississippi. Practically, this means a Texas city's only leverage over wages is indirect — for example, through requirements attached to municipal contracts — rather than through a blanket minimum-wage law covering all employers within city limits.

What a Texas Paycheck Looks Like at $7.25/hr

Because $7.25/hr is a flat rate, the math is simple, but breaking it out by pay period shows how little room it leaves.

A worker earning the Texas minimum wage who works a standard 40-hour week earns $290.00 before any deductions. Over a two-week pay period — the most common pay schedule for hourly employees — that comes to $580.00. On a monthly basis (52 weeks spread across 12 months), gross pay works out to roughly $1,256.67. Annually, at 40 hours a week for 52 weeks, total gross earnings are $15,080 — the figure cited in the quick-answer box above.

One factor that partly offsets the low hourly rate: Texas has no state income tax. A minimum-wage worker's paycheck is reduced only by federal payroll taxes (Social Security and Medicare) and any federal income tax withholding, not by an additional state tax bite — unlike a minimum-wage worker in a state such as New York or Illinois.

Texas Minimum Wage vs. Other Large States

Source: US Department of Labor, as of January 2026.

The table highlights an unusual pattern. Among the five largest states, only two are stuck at the federal floor: Texas and Pennsylvania. But Texas, with roughly 31 million residents, is by far the larger of the two — more than double Pennsylvania's population of about 13 million. That gap is what makes Texas notable: it's the largest state in the country that has never raised its minimum wage above $7.25/hr.

What Do Texas Workers Actually Earn?

Despite the $7.25/hr legal minimum, market wages in Texas are significantly higher. According to Bureau of Labor Statistics data, the median hourly wage in Texas is above $19/hr, and entry-level positions in major metro areas typically start at $12-$16/hr. The tight labor market, particularly in Houston, Dallas-Fort Worth, Austin, and San Antonio, has pushed starting wages well above the legal minimum.

However, workers in rural areas and small towns — particularly in the service and agricultural sectors — are the most likely to be paid at or near $7.25/hr. The gap between the legal minimum and market wages is widest in the Rio Grande Valley and other economically disadvantaged regions.

Texas Tipped Minimum Wage

Texas follows the federal tip credit rules. The tipped cash wage is $2.13 per hour, with employers allowed to claim a tip credit of up to $5.12/hr toward the $7.25 full minimum wage. If tips do not bring the employee to $7.25/hr in any workweek, the employer must pay the difference.

Here's how that works in practice. A tipped worker in Dallas who works 30 hours in a week is paid a direct cash wage of $2.13/hr from their employer — $63.90 for the week. If that worker also collects $250 in tips, total earnings for the week come to $313.90, well above the $217.50 needed to clear the $7.25/hr floor (30 hrs × $7.25), so no additional employer payment is required.

But tips vary. If that same worker has a slow week and collects only $100 in tips, total pay comes to $163.90 ($63.90 cash wage + $100 tips) — short of the $217.50 minimum by $53.60. Texas employers are legally required to make up that shortfall, bringing the worker's pay up to the full $7.25/hr minimum for every hour worked, regardless of how slow tips were that week.

How Texas Compares to Its Neighboring States

Texas borders four states, and none pays workers less than Texas does — but only two of them pay more than the federal floor.

• New Mexico: $12.00/hr — well above the Texas rate, and the largest gap among Texas's neighbors.
• Oklahoma: $7.25/hr — the same as Texas; Oklahoma also preempts its cities from setting their own minimum wage.
• Arkansas: $11.00/hr — Arkansas has raised its state minimum wage well above the federal floor, though it too blocks cities and counties from enacting a different local rate.
• Louisiana: $7.25/hr — the same as Texas, and like Texas, Louisiana has no state minimum wage law of its own.

Of Texas's four neighbors, only New Mexico and Arkansas require employers to pay more than the federal minimum. Oklahoma and Louisiana sit in the same position as Texas: no state-level increase above $7.25/hr, and both preempt their own cities from setting higher local rates.

Will Texas Raise Its Minimum Wage?

There is no active legislation to raise the Texas minimum wage, and the state's political dynamics have not favored minimum wage increases. Texas does not have a citizen-led ballot initiative process for statutes, so voters cannot directly raise the minimum wage through a ballot measure (as they did in Florida, Missouri, and Nebraska). Any increase would require action by the Texas Legislature and the Governor.

Frequently Asked Questions

Does Texas have its own minimum wage law?

No. Texas has never enacted a state minimum wage statute, so the federal Fair Labor Standards Act rate of $7.25/hr applies by default. The Texas Workforce Commission handles wage-claim enforcement but does not set the minimum wage rate.

Can cities in Texas set their own, higher minimum wage?

No. Texas Labor Code Chapter 212 preempts local governments from setting a minimum wage above the state/federal rate. Dallas, Houston, Austin, and San Antonio cannot legally require employers to pay more than $7.25/hr through a local ordinance.

What is the minimum wage for tipped workers in Texas?

Tipped employees in Texas can be paid a direct cash wage of $2.13/hr, with employers claiming a tip credit of up to $5.12/hr. If an employee's tips plus the $2.13/hr cash wage don't add up to $7.25/hr in a given workweek, the employer must pay the difference.

How does the Texas minimum wage compare to neighboring states?

Two of Texas's four neighboring states pay more: New Mexico ($12.00/hr) and Arkansas ($11.00/hr). Oklahoma and Louisiana match Texas at $7.25/hr, and like Texas, both also preempt their cities from setting a higher local minimum wage.

Is Texas likely to raise its minimum wage in 2026?

There is no pending legislation to raise the Texas minimum wage. Because Texas does not have a citizen-led ballot initiative process for statutes, voters cannot put a minimum-wage increase directly on the ballot the way voters did in Florida, Missouri, and Nebraska. Any increase would have to come from the Texas Legislature and the governor.

What is the annual salary for a full-time minimum-wage worker in Texas?

At $7.25/hr and a standard 40-hour week, a full-time Texas minimum-wage worker earns $15,080 a year before taxes — the same figure produced anywhere else the $7.25/hr federal floor applies, since the Texas rate simply tracks the federal minimum.

Related: States with the Lowest Minimum Wage · Why the Federal Minimum Wage Hasn't Increased Since 2009 · Texas Minimum Wage Data Page