The minimum wage in Texas is $7.25 an hour as of October 2026, the same as the federal rate. Texas law doesn't set its own dollar figure: it adopts the federal minimum wage by reference, so the number only moves if Congress changes the federal rate.
Everything on this page comes from the U.S. Department of Labor's state minimum wage tables, checked in October 2026. Texas is one of the simplest states to explain and one of the easiest to get wrong, because most people assume a state this size must have a rate of its own. It doesn't.
The Texas rates at a glance
| What | Rate in Texas (as of October 2026) | Federal rule |
|---|---|---|
| Standard minimum wage | $7.25 an hour | $7.25 an hour |
| Minimum cash wage for tipped staff | $2.13 an hour | $2.13 an hour |
| Maximum tip credit | $5.12 an hour | $5.12 an hour |
| Who counts as tipped | More than $20 a month in tips | More than $30 a month in tips |
That last row is the one people miss. Under Texas law, someone counts as a tipped employee once they get more than $20 a month in tips. The federal line is more than $30. So the Texas definition kicks in earlier.
Why Texas law covers so few jobs
The Department of Labor notes that the Texas minimum wage law excludes from coverage any employment that's subject to the federal Fair Labor Standards Act. In plain English, if your business is covered by the federal law, it's the federal law that sets your floor, not the Texas one. Texas sits in the same group as Kansas, Oklahoma and Utah on that point.
For most employers that makes no difference to the number, because both laws land on $7.25. Where it matters is enforcement and paperwork: the rules you follow on records, tips and overtime are the federal ones. If you want the background on the federal law itself, my guide to the federal minimum wage covers it.
How tipped pay works in Texas
An employer can pay a tipped employee a cash wage of $2.13 an hour and count up to $5.12 an hour of tips towards the minimum. The combined cash wage and tips still has to reach $7.25 for every hour worked. If a slow shift leaves someone short, the employer makes up the difference.
- Check the employee gets more than $20 a month in tips. If they don't, they're not a tipped employee and the full $7.25 applies.
- Pay at least $2.13 an hour in cash wages.
- Add up the tips for the pay period and divide by the hours worked.
- If cash wage plus tips per hour comes to less than $7.25, top it up in that pay period.
- Keep the tip records. They're what proves you met the minimum if anyone asks.
How the Texas rate has changed
The Department of Labor's history table shows how little Texas has moved, because it simply follows the federal rate.
| Year | Texas minimum wage |
|---|---|
| 2000 and 2001 | $3.35 |
| 2002 to 2006 | $5.15 |
| 2014 to 2024 | $7.25 every year |
| As of October 2026 | $7.25 |
Texas employees haven't had a state-driven raise in that whole period. Any rise has come from the federal rate, and the federal rate has sat at $7.25 for every year shown from 2014 to 2024.
How Texas compares with its neighbours
| State | Basic minimum wage (as of October 2026) |
|---|---|
| Texas | $7.25 |
| New Mexico | $12.00 |
| Arkansas | $11.00 (employers with 4 or more employees) |
| Oklahoma | $7.25 |
| Louisiana | No state minimum wage law, so the federal $7.25 applies |
That gap with New Mexico is worth knowing if you hire remote staff across the border. The rate that applies is where the employee works, not where your business is registered.
Overtime in Texas
Texas doesn't have a separate state overtime rule in the Department of Labor's tables, so overtime for covered employers comes from the federal Fair Labor Standards Act. My overtime laws guide explains who qualifies and how it's worked out.
What employers in Texas should do
- Pay at least $7.25 an hour to every non-exempt employee.
- Use the $20-a-month test, not the federal $30 one, when you decide who's tipped under Texas law.
- Keep hours and tip records for every pay period.
- Watch the federal rate rather than the Texas statute. That's the number that moves Texas pay.
- If you employ people in another state, check that state's rate separately. Many are far higher.
What the state tables don't show
The Department of Labor is upfront about the limits of its tables. Some states set lower rates for minors or students, or a training wage for new hires, and some local governments set rates higher than their state's. Those differences aren't displayed in the state tables. So if you're hiring young workers or trainees, or you operate somewhere with its own local rules, check the specific rule for that group before you rely on the headline $7.25.
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The same goes for exempt staff. Salaried managers and professionals can fall outside minimum wage and overtime rules under the federal law, but only if they meet the tests. My exempt vs non-exempt guide explains how that works.
My verdict
Texas is the easy one: $7.25 an hour, $2.13 cash for tipped staff, and federal rules doing almost all the work. The only trap is the tipped definition, which starts at more than $20 a month in Texas. Get that right, keep clean tip records, and you're covered. If you're paying the bare minimum and struggling to hire, though, that's not a legal problem, it's a market one, and plenty of Texas employers pay well above it to compete.
Frequently asked questions
What is the minimum wage in Texas right now?
It's $7.25 an hour as of October 2026, the same as the federal minimum wage.
Does Texas have its own minimum wage?
Texas has a minimum wage law, but it doesn't set its own dollar figure. It adopts the federal rate by reference.
What's the tipped minimum wage in Texas?
Employers can pay a cash wage of $2.13 an hour and claim up to $5.12 in tips, as long as cash plus tips reaches $7.25 an hour.
Who counts as a tipped employee in Texas?
Under Texas law it's someone who gets more than $20 a month in tips. The federal definition is more than $30.
Will the Texas minimum wage go up?
Only if the federal minimum wage goes up, because Texas follows the federal rate.
Does Texas law cover every employer?
No. The Texas minimum wage law excludes employment that's subject to the federal Fair Labor Standards Act, so most employers follow the federal law.


