Texas Minimum Wage 2026
⚠️Informational only — not legal or tax advice.
Last Updated: February 2, 2026
Last Reviewed: February 2, 2026
Applicable Period: 2026
Jurisdiction: State of Texas, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter
Table of Contents
- Introduction
- Texas Minimum Wage – 2026 Quick Reference
- Overview of Minimum Wage Law in Texas
- Current Minimum Wage Rates in Texas 2026
- Minimum Wage for Tipped Employees
- Local Minimum Wage Ordinances in Texas
- Who Is Covered and Who Is Exempt
- Employer Obligations and Enforcement
- Texas Minimum Wage vs Federal Law
- Minimum Wage Posting Requirements
- Frequently Asked Questions
- Information Verification Log
Introduction
The minimum wage in Texas establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Texas adopts the federal minimum wage of $7.25 per hour, which applies to most employers and employees across the state. Texas law permits employers to claim a tip credit for tipped employees earning more than $20 per month in tips.
Minimum wage regulations in Texas operate under Texas Labor Code Chapter 62 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When both state and federal minimum wage laws apply, employers must comply with the higher applicable rate. Texas allows tip credits under federal guidelines, and state law prohibits cities and counties from enacting higher minimum wage ordinances.
This page provides an authoritative overview of Texas minimum wage law for 2026, including current rates, tipped employee provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.
| Texas Minimum Wage – 2026 Quick Reference | |||
|---|---|---|---|
| Category | Rate | Effective Date | Official Source |
| State minimum wage | Federal rate applies | — | Texas Labor Code § 62.051 |
| Federal minimum wage | $7.25/hour | July 24, 2009 | FLSA § 6 |
| Tipped minimum wage | $2.13/hour | — | FLSA § 203(m) |
| Tip credit allowed | Yes (up to $5.12) | — | Federal law |
| Next scheduled increase | None | N/A | N/A |
| Rate adjustment mechanism | Federal adoption | — | Texas Labor Code § 62.051 |
| Local minimum wages | Prohibited | — | Texas Labor Code § 62.151 |
| Annual adjustment | No | — | — |
Last verified: February 2, 2026 via Texas Workforce Commission
Overview of Minimum Wage Law in Texas
Legal Authority
Texas minimum wage requirements are established under Texas Labor Code Chapter 62, also known as the Texas Minimum Wage Act. The Texas Workforce Commission administers and enforces minimum wage regulations in Texas. Under Section 62.051, Texas adopts the federal minimum wage rate by reference rather than establishing an independent state rate.
Relationship to Federal Law
Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Texas law adopts the federal minimum wage rate by reference, requiring employers covered by the FLSA to pay at least $7.25 per hour. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.
Because Texas adopts the federal minimum wage, most minimum wage requirements applicable to Texas employers are governed by the FLSA rather than independent state law. Texas law serves primarily to extend minimum wage protection to employers and employees who may fall outside federal coverage, though such circumstances are relatively limited.
Coverage Scope
Texas minimum wage law applies to employers not covered by the Fair Labor Standards Act. Under Section 62.151, the Texas Minimum Wage Act explicitly does not apply to any person covered by the FLSA. This means that for most employers and employees in Texas, minimum wage obligations are governed by federal law rather than Texas law.
Employers subject to federal minimum wage requirements include those engaged in interstate commerce or those with annual gross sales exceeding $500,000. Most businesses in Texas meet one of these criteria and are therefore covered by the FLSA.
Higher Rate Principle
The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Texas, because state law adopts the federal minimum wage and prohibits local minimum wage ordinances, the $7.25 federal minimum wage applies uniformly throughout the state for most covered employers and employees.
Current Minimum Wage Rates in Texas 2026
Standard Hourly Minimum Wage
As of 2026, the minimum wage in Texas is $7.25 per hour for covered employees. This rate matches the federal minimum wage, which has remained unchanged since July 24, 2009. Texas adopted the federal rate through Section 62.051 of the Texas Labor Code, which states that employers must pay “the federal minimum wage under Section 6, Fair Labor Standards Act of 1938.”
The $7.25 rate applies to all non-exempt employees covered by either federal or state minimum wage law. Most employees in Texas are covered by federal law, which means their minimum wage rights are primarily governed by the FLSA rather than Texas state law.
Youth and Training Wages
Federal law permits employers to pay workers under age 20 a youth training wage of $4.25 per hour during their first 90 consecutive calendar days of employment. After 90 days or when the employee reaches age 20, whichever comes first, employers must pay at least the full minimum wage of $7.25 per hour.
Texas law provides exemptions for certain student workers and young employees under Section 62.155, which exempts from state minimum wage requirements persons under 18 who are not high school graduates and students under 20 enrolled in educational programs. However, these workers may still be covered by federal minimum wage law.
Scheduled Increases
No minimum wage increases are currently scheduled in Texas. The minimum wage will remain at $7.25 per hour unless changed by future federal legislation. Texas does not have a mechanism for automatic annual minimum wage adjustments—changes depend entirely on amendments to the Fair Labor Standards Act or changes to Texas law.
While bills to raise Texas’s minimum wage have been introduced in recent legislative sessions, none have advanced to final passage. Any future increases to the Texas minimum wage would require new legislation by the Texas Legislature and approval by the Governor.
Minimum Wage for Tipped Employees
Tipped Employee Cash Wage
Texas permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. Under Section 62.052 of the Texas Labor Code, Texas adopts the federal tipped minimum wage provisions.
Cash wage requirement: $2.13 per hour
Maximum tip credit: $5.12 per hour
Total minimum compensation: $7.25 per hour (cash wage + tips)
Who Qualifies as a Tipped Employee
Under Texas law, a “tipped employee” is defined as an employee who customarily and regularly receives more than $20 per month in tips. This definition differs slightly from federal law, which uses a $30 per month threshold. Texas employers should apply the more protective standard appropriate to their situation.
Qualifying occupations typically include:
- Restaurant servers and bartenders
- Hotel service workers
- Parking attendants and valets
- Delivery drivers who receive tips
- Hair stylists and barbers in certain settings
- Other service occupations where tipping is customary
Employer Obligations for Tipped Workers
Employers who claim a tip credit must:
- Inform employees of tip credit provisions before implementation. Federal regulations require clear notification that the employer intends to claim a tip credit and how tips will be treated.
- Ensure total compensation (cash wage plus tips) equals or exceeds $7.25 per hour for all hours worked.
- Pay the difference if an employee’s tips fail to bring total compensation to the minimum wage. Employers must make up shortfalls in the same pay period.
- Maintain accurate records of employee tips and hours worked as required by federal recordkeeping regulations.
- Permit employees to retain all tips received, except for valid tip pooling arrangements.
Tip Pooling and Sharing
Federal law, which governs most tipped employment in Texas, permits mandatory tip pooling arrangements among employees who customarily and regularly receive tips. Managers and supervisors may not participate in tip pools or retain any portion of employee tips.
Valid tip pooling arrangements must:
- Include only employees who customarily and regularly receive tips
- Exclude managers, supervisors, and employers from the pool
- Distribute pooled tips in a fair and reasonable manner
- Not be used to avoid paying the full minimum wage when tips are insufficient
Local Minimum Wage Ordinances in Texas
Texas law prohibits cities and counties from enacting their own minimum wage rates that differ from the state minimum wage. Under Section 62.151 of the Texas Labor Code, municipal ordinances governing wages in private employment do not apply to persons covered by the Fair Labor Standards Act. Additionally, broader state preemption legislation prevents local jurisdictions from establishing employment regulations that conflict with state law.
Several Texas cities, including Austin, Dallas, and San Antonio, attempted to enact paid sick leave ordinances and other employment regulations in 2018 and 2019. Courts ruled these ordinances were preempted by the state’s minimum wage law, and subsequent legislation further restricted local employment regulations. As a result, the $7.25 minimum wage applies uniformly across all jurisdictions in Texas.
While some Texas municipalities, including Dallas and Fort Worth, voluntarily pay their own municipal employees wages above the federal minimum, they cannot mandate higher wages for private employers operating within their boundaries. All private employers in Texas must comply with the uniform federal and state rate of $7.25 per hour.
Who Is Covered and Who Is Exempt
Employees Covered by Texas Minimum Wage
Texas minimum wage law covers employees not subject to the Fair Labor Standards Act. However, since the FLSA covers most employers and employees, federal minimum wage requirements govern the vast majority of employment relationships in Texas.
Covered employees under federal law include:
- Private sector workers: Full-time and part-time employees of private businesses engaged in interstate commerce or with annual gross sales exceeding $500,000
- Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for white-collar overtime exemptions
- Hourly employees: Workers compensated on an hourly basis
- Temporary and seasonal workers: Generally covered if the employer meets FLSA coverage criteria
- Minor employees: Workers under age 18, subject to certain youth wage provisions
Exemptions from Minimum Wage Requirements
The following categories of employees may be exempt from Texas or federal minimum wage requirements:
Executive, Administrative, and Professional Employees
Under Section 62.153, employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests established by federal regulations. For 2026, the federal salary threshold for most white-collar exemptions is $844 per week ($43,888 annually).
Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location may be exempt from minimum wage requirements under both state and federal law.
Agricultural Workers
Section 62.160 provides exemptions for various agricultural occupations, including those engaged in dairying, livestock production, and certain farming operations. Federal law also provides limited exemptions for small farm operations and certain agricultural workers.
Domestic Employees
Under Section 62.154, Texas law exempts employees who perform domestic services in or about a private home, including babysitters and persons providing personal care to home residents.
Student Workers and Certain Youth
Section 62.155 exempts certain young workers and students from state minimum wage requirements, though federal law may still apply. Full-time students working part-time at qualifying institutions may be paid subminimum wages under federal student learner certificates.
Religious, Educational, Charitable, and Nonprofit Organizations
Section 62.152 exempts employment by religious, educational, charitable, or nonprofit organizations from state minimum wage requirements. Federal coverage may still apply to such organizations depending on their activities and revenue.
Workers with Disabilities
Under Section 62.057, Texas permits subminimum wages for patients or clients of the Texas Department of State Health Services and individuals whose earning capacity is impaired by age or disability. Federal law also permits subminimum wages for workers with disabilities under special certificates issued by the U.S. Department of Labor.
Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Texas and federal agencies apply strict tests to determine independent contractor status, and misclassification may result in penalties and back wages.
Additional Exemptions
Other exemptions under Texas law include:
- Prison inmates (Section 62.156)
- Certain family members of the employer (Section 62.157)
- Seasonal amusement and recreational establishments (Section 62.158)
- Certain employers not liable for unemployment contributions (Section 62.159)
Employer Obligations and Enforcement
Employer Compliance Requirements
Employers subject to Texas minimum wage law must:
- Pay the applicable minimum wage for all hours worked. Under Texas and federal law, this means at least $7.25 per hour for non-exempt employees.
- Maintain accurate payroll records documenting hours worked and wages paid. Under federal regulations, employers must retain payroll records for at least three years.
- Display required posters informing employees of minimum wage rates and their rights under applicable wage and hour laws.
- Issue compliant wage statements showing gross wages, deductions, and net pay. Section 62.003 requires employers to provide written earnings statements at the end of each pay period.
- Pay wages on time according to the payday schedules required by the Texas Payday Law.
Recordkeeping Requirements:
Employers must maintain payroll records for at least three years under federal law. Records must include:
- Employee names, addresses, and Social Security numbers
- Hours worked each workday and workweek
- Wage rates and total wages paid each pay period
- Deductions from wages and net pay
- Dates of payment and pay periods covered
Enforcement of Minimum Wage Law
The Texas Workforce Commission enforces state minimum wage requirements in Texas. The U.S. Department of Labor’s Wage and Hour Division enforces federal minimum wage law. The agencies:
- Investigate wage complaints filed by employees
- Conduct compliance investigations
- Issue citations and orders for wage violations
- Collect unpaid wages and penalties on behalf of employees
- Refer cases for criminal prosecution when appropriate
Filing a Wage Claim:
Employees who believe they have not been paid proper minimum wage may file a complaint:
With the Texas Workforce Commission:
- Online: File wage claim online
- Phone: 800-832-9243
- Mail: Texas Workforce Commission, Wage and Hour Department, 101 East 15th Street, Room 514, Austin, TX 78778-0001
Deadline: Wage claims with TWC must be filed within 180 days after wages were due.
With the U.S. Department of Labor:
- Online: File complaint at dol.gov
- Phone: 866-487-9243
TWC investigations are limited to the individual claimant’s wages. The U.S. Department of Labor may investigate employer-wide payroll practices and can pursue claims going back up to two years (or three years for willful violations). All complaints filed with the U.S. Department of Labor are kept confidential.
Texas law prohibits retaliation against employees who file wage complaints or cooperate with investigations.
Penalties for Minimum Wage Violations
Employers who violate Texas or federal minimum wage law may be subject to:
Back Wages:
Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. Federal claims may go back two years, or three years for willful violations. Texas Payday Law claims are generally limited to 180 days.
Liquidated Damages:
Under both state and federal law, employers may be liable for liquidated damages equal to the amount of unpaid wages. This effectively doubles the employer’s liability for wage violations.
Civil Penalties:
Federal law authorizes civil penalties of up to $2,374 per violation for minimum wage violations. The Texas Workforce Commission may assess administrative penalties up to $1,000 per violation under the Texas Payday Law.
Criminal Penalties:
Under Section 61.051 of the Texas Labor Code, an employer commits a third-degree felony if the employer intends to avoid payment of wages at the time of hiring and subsequently fails to pay those wages.
Attorney Fees:
Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under both state and federal law.
Texas Minimum Wage vs Federal Law
The Federal Minimum Wage Floor
The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000. Most businesses meet one of these criteria and are covered by the FLSA.
When State Law Applies
Texas adopts the federal minimum wage rate of $7.25 per hour through Section 62.051 of the Texas Labor Code. For employers covered by both state and federal law, the requirements are identical.
Texas law serves primarily to extend minimum wage coverage to employers and employees who may fall outside federal coverage. However, Section 62.151 explicitly provides that Texas minimum wage law does not apply to persons covered by the FLSA. This means most minimum wage obligations in Texas are governed by federal rather than state law.
Higher Applicable Rate Rule
The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal, state, or local—provides employees the highest hourly wage. In Texas, because state law adopts the federal rate and local minimum wages are prohibited, this principle results in a uniform $7.25 minimum wage across all jurisdictions.
Practical Application:
- Identify whether the employer is covered by the Fair Labor Standards Act (most are)
- Determine whether employees are exempt or non-exempt under federal regulations
- Pay at least $7.25 per hour to all non-exempt employees
- Comply with federal tipped wage provisions if employing tipped workers
| Regional Minimum Wage Context | |
|---|---|
| State | 2026 Rate |
| Texas | $7.25 |
| Oklahoma | $7.25 |
| Louisiana | $7.25 |
| Arkansas | $11.00 |
| New Mexico | $12.00 |
Texas’s rate equals the federal minimum and matches Louisiana and Oklahoma. New Mexico ($12.00) and Arkansas ($11.00) have established rates above the federal floor. For detailed state-by-state minimum wage comparisons, employers operating across multiple states should consult current rate information from the U.S. Department of Labor.
Note: Rates shown are standard minimum wages and do not reflect any local or industry-specific variations in other states.
Minimum Wage Posting Requirements
Texas and federal law require employers to display official minimum wage notices in conspicuous locations accessible to all employees. The poster must include current wage rates, employee rights, and contact information for enforcement agencies.
Where to obtain posters:
- Download federal poster from U.S. Department of Labor
- Download Texas posters from Texas Workforce Commission
- Available languages: English and Spanish (Spanish posters are required where a significant number of employees speak Spanish as their primary language)
Required posters include:
- Fair Labor Standards Act (FLSA) minimum wage poster (federal)
- Texas Payday Law poster
- Equal Employment Opportunity poster
- Unemployment Insurance poster
- Additional posters depending on employer size and industry
Posting locations:
Notices must be posted in each workplace location where employees can readily see them. Common posting locations include break rooms, near time clocks, or other prominent areas. For employees who telework, employers should provide electronic access to required posters.
Compliance:
Failure to display required posters may result in citations and penalties from enforcement agencies. Employers must update posters when minimum wage rates change.
Frequently Asked Questions: Minimum Wage in Texas 2026
What is the minimum wage in Texas in 2026?
The minimum wage in Texas is $7.25 per hour as of 2026. Texas adopts the federal minimum wage established by the Fair Labor Standards Act. This rate has remained unchanged since July 24, 2009.
When is the next minimum wage increase in Texas?
No minimum wage increases are currently scheduled in Texas. The rate will remain $7.25 per hour unless changed by future federal legislation or new Texas law. Texas does not have automatic annual adjustments—changes require legislative action.
Does Texas allow tip credit?
Yes, Texas permits employers to pay tipped employees a cash wage of $2.13 per hour, with up to $5.12 in tip credit, provided total compensation reaches $7.25 per hour. Tipped employees are those who regularly receive more than $20 per month in tips under Texas law.
Are there different minimum wages in different cities in Texas?
No, Texas maintains a uniform statewide minimum wage of $7.25. Texas law prohibits cities and counties from enacting minimum wage rates different from the state rate. The same $7.25 applies throughout all Texas jurisdictions.
Who is exempt from minimum wage in Texas?
Common exemptions from Texas minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, certain agricultural workers, domestic employees in private homes, some student workers, and properly classified independent contractors. Most exemptions apply under federal law, which governs most employment in Texas.
What happens if an employer pays below minimum wage in Texas?
Employers who pay below minimum wage face back wage liability, liquidated damages equal to unpaid wages, civil penalties up to $1,000 under state law and $2,374 under federal law per violation, and potential criminal prosecution. Employees can file complaints with the Texas Workforce Commission or U.S. Department of Labor to recover unpaid wages.
Do small businesses have to pay minimum wage in Texas?
Yes, all employers in Texas must pay minimum wage regardless of business size. Even single-employee businesses must comply with the $7.25 hourly rate under either state or federal law. Very small farms and certain family businesses may qualify for narrow exemptions under federal law.
Is Texas’s minimum wage higher than the federal minimum?
No, Texas’s minimum wage of $7.25 equals the federal minimum wage. Texas law adopts the federal rate by reference rather than establishing a higher independent state rate.
How often does Texas increase its minimum wage?
Texas’s minimum wage does not automatically adjust. Changes occur only through new legislation enacted by the Texas Legislature or changes to federal law. The rate has remained $7.25 since the federal minimum wage was last increased in 2009.
Can employers pay less than minimum wage during training?
Federal law permits employers to pay workers under age 20 a training wage of $4.25 per hour during their first 90 days of employment. Texas law provides exemptions for certain student workers and young employees, but these workers may still be covered by federal minimum wage requirements.
How to file a minimum wage complaint in Texas
Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Texas Workforce Commission. Filing methods include:
- Online portal: File online at TWC
- Phone: 800-832-9243
- Mail: Texas Workforce Commission, Wage and Hour Department, 101 East 15th Street, Room 514, Austin, TX 78778-0001
Employees may also file complaints with the U.S. Department of Labor at 866-487-9243 or through the DOL complaint portal. TWC claims must be filed within 180 days of when wages were due. Federal claims may go back two to three years. Texas law prohibits employer retaliation against workers who file wage complaints.
Do remote workers in Texas get the Texas minimum wage?
Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Texas are entitled to at least $7.25 per hour under Texas or federal law, even if their employer is based in another state. Employers with remote workers should verify which state’s minimum wage applies based on work location.
Information Verification Log
All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.
| Primary Legal and Government Sources — Texas (Verified) | ||
|---|---|---|
| Source | Last Verified | Full URL |
| Texas Labor Code Chapter 62 | February 2, 2026 | https://statutes.capitol.texas.gov/Docs/LA/htm/LA.62.htm |
| Texas Workforce Commission — Minimum Wage | February 2, 2026 | https://www.twc.texas.gov/programs/wage-and-hour/texas-minimum-wage-law |
| TWC Wage Claim Filing | February 2, 2026 | https://www.twc.texas.gov/programs/wage-and-hour/texas-payday-law |
| Fair Labor Standards Act (FLSA) | February 2, 2026 | https://www.dol.gov/agencies/whd/flsa |
| U.S. DOL — State Minimum Wages | February 2, 2026 | https://www.dol.gov/agencies/whd/minimum-wage/state |
| Federal Labor Law Posters | February 2, 2026 | https://www.dol.gov/agencies/whd/posters/flsa |
| TWC Required Workplace Posters | February 2, 2026 | https://www.twc.texas.gov/programs/unemployment-tax/posters-workplace |