Texas Minimum Wage 2026
Texas' minimum wage of $7.25 in 2026 is below average in the United States, and it is the same as than the base federal minimum wage of $7.25 still used in 20 states.
Federal 
Texas Assuming a standard 40-hour work week, the weekly minimum wage in Texas is $290. For full-time employees working 52 weeks per year, the annual minimum wage in Texas is $15.1K.
Based on $7.25/hr minimum
Based on $7.25/hr minimum
The minimum wage rate of Texas and its neighboring states ranges from $7.25 to $15.15, with an average of $9.98. Texas, at $7.25, has the lowest hourly minimum wage within this group of states. Arizona ($15.15), New Mexico ($12), and Arkansas ($11) all have higher hourly rates than Texas. Louisiana and Oklahoma share the same $7.25 hourly rate as Texas.
Texas While the general minimum wage is $7.25 per hour in Texas, there are exceptions where workers may legally receive less than this amount:
Employees who receive tips can be paid a lower cash wage ($2.13/hr under federal law), as long as tips bring total earnings up to at least the federal minimum wage ($7.25/hr).
Workers under 20 years old may be paid a lower “training wage” ($4.25/hr) for the first 90 consecutive days of employment.
Employees in bona fide executive, administrative, or professional roles are exempt from minimum wage requirements.
Employees whose primary duties are sales away from the employer’s location are exempt from minimum wage requirements.
Texas' cost of living index for 2025 is 92.1, which places it as the 39th most expensive state to live in the United States.
National 100
Texas 92.1
Assuming a standard 40-hour work week, the real wage in Texas, adjusted for the state’s cost of living index of 92.1, is approximately $7.87 per hour. This means that while the nominal minimum wage is $7.25 per hour, the purchasing power of those earnings is higher due to Texas' lower cost of living expenses. For full-time employees, the real weekly earnings amount to roughly $314.88, translating to an annual purchasing power of $16,373.51 when working 52 weeks per year.
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According to the most recent data, the median household income in the United States has seen a significant increase in 2023.
As of April 2026, the Texas minimum wage remains $7.25 per hour, matching the federal Fair Labor Standards Act (FLSA) rate, with no state-level changes passed. Texas law prohibits cities from setting higher local minimum wages.
