Texas minimum wage in 2026: the federal rate by law
Texas pays $7.25 an hour because its Minimum Wage Act points to federal law. Section 62.051 of the Labor Code says an employer "shall pay to each employee the federal minimum wage" under the Fair Labor Standards Act[tx1]. When the federal rate moves, the Texas rate moves with it, so the history of the minimum wage in Texas is the federal history.
| Effective date | Hourly minimum |
|---|---|
| Apr. 1, 1990 | $3.80 |
| Apr. 1, 1991 | $4.25 |
| Oct. 1, 1996 | $4.75 |
| Sept. 1, 1997 | $5.15 |
| July 24, 2007 | $5.85 |
| July 24, 2008 | $6.55 |
| July 24, 2009 | $7.25 |
The U.S. Department of Labor's state table, updated November 5, 2026, still places Texas at $7.25 and notes that the state law does not cover employment that the federal law already covers[dol1][dol2]. In practice most Texas employers are covered by the federal Act, and the two rates are the same.
Tipped workers, students and other exemptions in Texas
A tipped employee in Texas can be paid $2.13 an hour in cash if tips make up the remaining $5.12. Texas defines a tipped employee as someone who customarily and regularly receives more than $20 a month in tips, and it counts the employer's payment the same way the federal tip-credit rule does[tx1]. Federal rules add conditions: the employee keeps all tips, and cash wage plus tips must reach at least $7.25 for the week[dol3].
Other lower-pay rules come from two places:
- Federal youth wage. Employers covered by the federal Act may pay $4.25 an hour to workers under 20 during their first 90 consecutive calendar days on the job[dol3].
- Texas Act exemptions. The state Act excludes, among others: minors under 18 who have not graduated from high school or a vocational program; students under 20 enrolled in school; certain family members of the employer; certain amusement or recreational establishments; and dairy farming[tx1].
These state exemptions only matter for jobs the federal Act does not cover. A person covered by federal law is outside the Texas Act entirely and gets the federal protections instead[tx1].
Can Texas cities set a higher minimum wage?
Not for most private-sector jobs. Section 62.151 says the Texas Act and any municipal ordinance or charter provision governing wages in private employment do not apply to a person covered by the federal Fair Labor Standards Act. Wages under a public contract are the one carve-out[tx1]. So a Texas city cannot set a higher private-sector minimum for workers the federal Act covers.
Public contracts and government jobs follow their own rules: section 62.0515 covers how the minimum wage applies to certain government entities and agreements with them[tx1].
Overtime and unpaid wages at $7.25
Hours over 40 in a workweek are paid at one and a half times the regular rate for non-exempt employees, which is $10.875 an hour at $7.25[flsa].
If an employer pays less than the Texas Act requires, the employee can recover two things:
- the unpaid wages;
- an equal additional amount as liquidated damages.
The lawsuit must be filed within two years of the date the wages were due[tx1].
Texas minimum wage after taxes
A full-time job at $7.25 an hour is $15,080 a year before tax (2,080 hours). After federal income tax, Social Security, Medicare, a single worker keeps about $13,926, or $535.63 every two weeks. Change hours, overtime or W-4 details in the calculator below; for other pay levels use the Texas paycheck calculator.
| Hours a week | Weekly gross | Yearly gross | Yearly take-home | Take-home per hour |
|---|---|---|---|---|
| 20 | $145.00 | $7,540 | $6,963 | $6.70 |
| 30 | $217.50 | $11,310 | $10,445 | $6.70 |
| 40 | $290.00 | $15,080 | $13,926 | $6.70 |
Take-home at minimum wage
Texas minimum wage paycheck
Preset to $7.25 an hour, 40 hours a week, paid every two weeks.
Take-home pay$535.63every two weeks · $13,926 a year
| Item | Per paycheck | Per year |
|---|---|---|
| Earnings | ||
| Gross pay | $580.00 | $15,080.00 |
| Taxes | ||
| Federal income tax | $0.00 | $0.00 |
| Social Security (6.2%) | −$35.96 | −$934.96 |
| Medicare (1.45%) | −$8.41 | −$218.66 |
| Total taxes | −$44.37 | −$1,153.62 |
| Net pay | $535.63 | $13,926.38 |
Taxes take 7.7% of gross pay in Texas. Your top federal withholding bracket is 0%.
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Related pay tools
Overtime at the minimum wage is $10.88 an hour (time and a half): see the time and a half calculator. Add up shifts with the time card calculator, and compare states with the state tax calculator.
Frequently asked questions
What is the minimum wage in Texas in 2026?
$7.25 an hour, the same as the federal minimum wage. Texas law adopts the federal rate, which took effect July 24, 2009.
Is the Texas minimum wage going up in 2027?
No increase is scheduled. Because Texas ties its rate to federal law, it would only change if Congress raised the federal minimum wage.
What is the Texas minimum wage for tipped employees?
A cash wage of at least $2.13 an hour, with up to $5.12 an hour counted from tips. If tips fall short, the employer must make up the difference to $7.25.
How much is $7.25 an hour a year after taxes in Texas?
Full time (2,080 hours) is $15,080 a year before tax. A single filer with a standard 2026 W-4 keeps about $13,926, because only federal income tax, Social Security and Medicare are withheld.