Texas minimum wage 2026: the rate, tips and pay rules

The Texas minimum wage is $7.25 an hour, the same as the federal minimum. Texas does not set its own dollar figure. The Texas Minimum Wage Act (Texas Labor Code Chapter 62) tells employers to pay the federal minimum wage under the Fair Labor Standards Act (FLSA), so the rate only changes when Congress changes it. That means the answer is the same in Houston, Austin, El Paso and a small town in the Panhandle, because state law blocks cities from setting their own rates. This guide covers the rate, the tipped wage, the youth and student exceptions, overtime, the Texas Payday Law and how to file a wage claim, with worked pay examples.

Texas minimum wage 2026: $7.25 an hour

Section 62.051 of the Texas Labor Code says an employer “shall pay to each employee the federal minimum wage under Section 6, Fair Labor Standards Act of 1938.” The federal rate has been $7.25 since July 24, 2009, and the U.S. Department of Labor’s state minimum wage table (updated July 1, 2026) lists Texas at $7.25 and notes that the state “adopts the federal rate by reference.”

One detail matters for how the two laws fit together. Section 62.151 says the Texas Minimum Wage Act does not apply to anyone covered by the FLSA. Most Texas employers are covered by the federal law, so in practice the FLSA rules apply to most workers, and the state act fills the gap for the smaller group the FLSA does not reach. Both set the same $7.25 floor.

Weekly and yearly pay at the minimum wage in Texas

These are gross pay figures before taxes for a non-exempt employee paid by the hour.

A full-time minimum wage job in Texas pays $15,080 a year, or about $1,256.67 a month on average. To turn any salary into an hourly figure, use our salary to hourly calculator.

Example with overtime. A warehouse worker earns $7.25 an hour and works 45 hours in one workweek. The 5 hours over 40 are paid at 1.5 times the regular rate, which is $10.875 an hour.

1. Regular pay: 40 hours × $7.25 = $290.00.
2. Overtime pay: 5 hours × $10.875 = $54.38 (rounded to the cent).
3. Total for the week: $290.00 + $54.38 = $344.38.

Most Texas employers pay more than $7.25 for hourly jobs, but the floor still matters: any week where tips, piece rates or deductions push effective pay below it is a violation. Check the math on your own hours with our overtime calculator.

Tipped minimum wage in Texas: $2.13 and the tip credit

Texas follows the federal tip credit. Section 62.052 says the wage of a tipped employee is the amount described in Section 3(m) of the FLSA. Under the Department of Labor’s rules, an employer may pay a tipped employee a cash wage of $2.13 an hour and count up to $5.12 an hour of tips toward the $7.25 minimum.

• Who counts as tipped. Under the FLSA, a tipped employee customarily and regularly receives more than $30 a month in tips. The Texas statute uses $20 a month for the smaller group of workers covered only by state law.
• Notice first. The Department of Labor says an employer must tell tipped employees about the tip credit before taking it, orally or in writing. Without that notice, the employer cannot take the credit.
• Make up any shortfall. If cash wages plus tips fall below $7.25 an hour for the workweek, the employer pays the difference.
• Tips belong to employees. Employers, managers and supervisors may not keep any part of employees’ tips, whether or not a tip credit is taken.

Example. A server works 30 hours and is paid $2.13 an hour, or $63.90 in cash wages. The minimum for those hours is 30 × $7.25 = $217.50, so tips must total at least $153.60. If the server reports only $120.00 in tips that week, cash wages plus tips are $183.90, and the employer owes another $33.60.

Tip pools. An employer that takes a tip credit can require a tip pool only among employees who customarily and regularly receive tips, such as servers, bussers and bartenders. If every worker gets at least the full $7.25 in cash, the pool can also include back-of-house staff like cooks and dishwashers. Managers and supervisors can never take from the pool. A mandatory service charge is not a tip; it belongs to the business and counts toward wages and the overtime regular rate.

Why there is no city minimum wage in Texas

Unlike California, where dozens of cities set their own rates (see our California minimum wage guide), Texas does not let local governments raise the floor for private employers. Section 62.0515 of the Labor Code says the state minimum wage “supersedes a wage established in an ordinance, order, or charter provision” governing wages in private employment.

There are two exceptions to know about:

• Government contracts and agreements. The preemption does not apply to a wage a city, county, special district or junior college district writes into its own contracts or agreements with private parties. A company that signs one of those contracts is bound by its wage terms, and the terms can reach its contractors and subcontractors on that work.
• The local government’s own staff. Cities and counties decide pay for their own employees, and some adopt a pay floor for their own workforce. That floor does not apply to private businesses in the city. Check the city’s human resources or purchasing office for current figures.

In 2023 the Legislature went further with House Bill 2127, often called the Texas Regulatory Consistency Act, which limits city and county rules in areas the state already regulates, including labor and employment. It took effect on September 1, 2023, after a court challenge that has not overturned it as of this update. For a private employer, the result is the same: one minimum wage applies statewide.

Minors and full-time students

Texas uses the federal minimum for minors in most jobs, but the FLSA allows two lower rates in limited cases.

• Youth opportunity wage. Employers may pay workers under 20 at least $4.25 an hour for their first 90 consecutive calendar days with that employer. The 90 days count from the first day of work, not from days worked. On the employee’s 20th birthday, or on day 91, pay must rise to at least $7.25. The Department of Labor prohibits displacing other workers, or cutting their hours, wages or benefits, to hire at the youth wage. For 20 hours a week, the youth wage pays $85.00 instead of $145.00.
• Full-time student program. Retail and service businesses, farms, and colleges hiring their own students can pay full-time students at least 85% of the minimum wage, which is just over $6.16 an hour, but only with a certificate from the Department of Labor. Students are limited to 8 hours a day and 20 hours a week while school is in session, and 40 hours a week when it is out.
• State law exemptions. For workers outside FLSA coverage, Section 62.155 of the Texas act exempts people under 18 who have not graduated from high school or a vocational program and students under 20 regularly enrolled in school, with exceptions for agricultural piece-rate workers.

Child labor rules, including hour limits and banned jobs for workers under 16 and 18, apply on top of these wage rules. Check the Department of Labor’s YouthRules guidance and the Texas Workforce Commission before scheduling minors.

Who is exempt from the minimum wage in Texas

Federal exemptions apply to FLSA-covered employers. The most common is the white-collar exemption for executive, administrative and professional employees, which requires a salary of at least $684 a week ($35,568 a year) plus a duties test. The Department of Labor enforces the $684 level after a federal court in Texas vacated the 2024 increase, and it republished the 2019 rule text in May 2026. Our exempt vs non-exempt guide explains the duties test.

For workers covered only by state law, Subchapter D of the Texas Minimum Wage Act lists these exemptions:

• Certain workers at religious, educational, charitable and nonprofit organizations, including ministers, some scout and camp staff, and volunteers.
• Bona fide executive, administrative and professional employees, outside salespeople and collectors paid by commission, and elected officials.
• Domestic workers in a private home, including babysitters and live-in personal care providers.
• Certain youths and students (described above), and inmates.
• The employer’s close family members.
• Seasonal amusement or recreational businesses that meet the statute’s seasonal tests.
• Employers not liable for state unemployment contributions, except for agricultural workers.
• Dairy farming and livestock production employees, plus sheltered workshops that follow federal rules.

Exemptions are narrow. If you are not sure a role qualifies, pay at least $7.25 and track hours.

Overtime rules in Texas

Texas has no state overtime law and no daily overtime. The FLSA applies: non-exempt employees earn 1.5 times their regular rate for every hour over 40 in a workweek. Hours over 8 in a day are not overtime unless the week goes past 40. The regular rate includes non-discretionary bonuses, shift premiums and service charges, so overtime is often higher than 1.5 × the base wage. Our guide to how to calculate overtime walks through bonuses and two-rate weeks.

Accurate hours are the foundation. A time clock app with GPS and geofencing records when shifts start and end, and a shift scheduling tool shows who is close to 40 hours before you approve another shift.

Texas Payday Law basics

The Texas Payday Law (Labor Code Chapter 61) covers when wages are paid, and it applies to most private employers in the state.

• How often. Employees exempt from FLSA overtime must be paid at least once a month. Everyone else must be paid at least twice a month, with pay periods as close to equal length as possible. Weekly and biweekly schedules both meet this.
• Posted paydays. Employers designate paydays and post them in conspicuous places at work. If an employer does not designate paydays, they default to the 1st and 15th of each month.
• Final pay. An employee who is fired or laid off must be paid in full within six calendar days. An employee who quits must be paid in full by the next regularly scheduled payday.
• Deductions. An employer may only withhold wages when a court orders it, a state or federal law allows it, or the employee authorizes it in writing for a lawful purpose.

Each pay stub should make all of this easy to check. Our guide on how to read a pay stub explains each line.

How to file a wage claim in Texas

If you were not paid what you are owed, including minimum wage hours or final pay, you can file a wage claim with the Texas Workforce Commission (TWC) under the Payday Law.

1. Gather records. Pay stubs, schedules, time records, texts about pay, and your employer’s legal name and address.
2. File within 180 days. Section 61.051 says the claim must be filed no later than the 180th day after the wages were due. TWC says it uses the date it receives the claim, and the deadline is jurisdictional, so late claims are not accepted. If some wages are older than 180 days, claim only the part inside the window.
3. Submit it. TWC accepts wage claims online and on its paper wage claim form. Check twc.texas.gov for the current filing options.
4. Watch for the decision. TWC investigates and issues a determination. Either side can appeal, and a party who has used up the agency appeals can sue within 30 days after the final order is mailed.

If TWC finds an employer acted in bad faith, it may add a penalty of up to the lesser of the wages owed or $1,000. Workers covered by the FLSA can also go to the U.S. Department of Labor’s Wage and Hour Division about minimum wage or overtime. Workers covered only by the state act can sue within two years under Section 62.202 for unpaid wages plus an equal amount in liquidated damages and attorney’s fees.

Texas compared with neighboring states

These rates come from the U.S. Department of Labor’s state minimum wage tables, updated July 1, 2026. For every state, see our minimum wage by state guide.

• Oklahoma also adopts the federal rate. Small employers (fewer than 10 full-time employees at one location and $100,000 or less in annual gross sales) have a state rate of $2.00, but any business covered by the FLSA must pay $7.25. A ballot measure to raise the state rate, State Question 832, was rejected by voters on June 16, 2026, according to news reports.
• Louisiana has no state minimum wage law, so covered employers pay the federal $7.25.
• Arkansas applies its $11.00 rate to employers with 4 or more employees.
• New Mexico sets $12.00 statewide, and some cities and counties, such as Santa Fe, set higher local rates.

Rates can change after an election or a new law, so check each state labor department before you hire across the border.

Texas minimum wage history and what’s next

Because Texas adopts the federal rate, the minimum wage in Texas has moved with federal increases. The Department of Labor lists these recent federal steps:

Is an increase coming? Not under current law. Bills to raise the federal minimum wage were introduced in the 119th Congress, including the Raise the Wage Act and a bipartisan Senate proposal for $15 an hour, but none has passed both chambers as of this update. Bills to allow local minimum wages in Texas have also been filed in past legislative sessions without becoming law. If Congress passes an increase, the Texas rate rises with it on the federal effective date. You can follow bill status on Congress.gov.

Frequently asked questions