Short answer
The Texas minimum wage is $7.25 an hour, the same as the federal minimum, because Texas law adopts the federal rate by reference rather than setting its own [1][2]. Employers may pay tipped workers a cash wage of $2.13 an hour if tips make up the difference [3]. Texas cities cannot set a higher minimum for private employers [4].
The current rate
As of the U.S. Department of Labor's July 1, 2026, update, the basic minimum wage in Texas is $7.25 per hour [1]. The Department of Labor notes that Texas adopts the federal minimum wage rate by reference and that its law does not contain current dollar minimums [1]. The Texas Workforce Commission (TWC) lists the federal rate of $7.25 per hour as effective July 24, 2009 [2].
Because the Texas rate is tied to the federal one, it would change only if the federal minimum wage changed [1][2]. The Department of Labor's state table shows a majority of states with basic minimum wages above $7.25 [1].
Tipped workers
Under both Texas and federal rules, an employer may pay a tipped employee a cash wage of $2.13 per hour and claim a tip credit of up to $5.12 per hour, as long as the worker's combined cash wage and tips reach $7.25 [3]. Texas defines a tipped employee as one who regularly receives more than $20 a month in tips; the federal threshold is more than $30 a month [3].
TWC notes that, with specified restrictions, employers may also count the value of meals and lodging toward the minimum wage [2].
Who is covered
The primary exemption from the Texas Minimum Wage Act covers anyone already covered by the federal Fair Labor Standards Act, so workers covered by the federal law are protected by it directly rather than by the state act [1][2]. TWC lists other exemptions from the state act, including certain religious, educational, charitable and nonprofit organizations; professionals and salespersons; domestic workers; certain youths and students; inmates; family members; amusement and recreational establishments; and dairy and livestock production [2].
The state act does not prohibit collective bargaining for a higher wage [2].
Why cities cannot set a higher minimum
A 2003 state law, House Bill 804, added Section 62.0515 to the Texas Labor Code, under which the state minimum wage supersedes a wage set in a municipal ordinance or charter for private employment [4]. The legislative analysis said the bill ensured the uniform application of the federal minimum wage in private employment at the local level and noted a Houston ballot initiative that had sought a $6.50 local minimum [4].
The law exempts public contracts, tax abatement agreements and certain job training programs, so local governments can still set wages for their own employees and contract workers [4][5].
Unpaid wages
According to TWC, a wage claim with the agency must be filed within 180 days after the wages were due [2]. A worker may instead file a civil lawsuit within two years of the date wages were due to recover unpaid wages plus an equal amount in liquidated damages, and the employer may be assessed attorney's fees and court costs [2].
Common questions
- Is the Texas minimum wage going up in 2026?
- No increase is scheduled. Texas adopts the federal rate, which remains $7.25 per hour [1][2].
- What is the minimum wage for tipped workers in Texas?
- A cash wage of $2.13 per hour, provided tips bring total pay to at least $7.25 per hour [3].
- Can Austin, Houston or Dallas set a higher minimum wage?
- Not for private employers. Texas Labor Code Section 62.0515, added in 2003, makes the state minimum supersede local wage ordinances for private employment [4].
- How long do I have to file a wage claim in Texas?
- 180 days after the wages were due for a claim with the Texas Workforce Commission, or two years for a civil lawsuit [2].
Sources
- State Minimum Wage Laws, U.S. Department of Labor, Wage and Hour Division, 2026-07-01
- Texas Minimum Wage Law, Texas Workforce Commission, 2026
- Minimum Wages for Tipped Employees, U.S. Department of Labor, Wage and Hour Division, 2026-07-01
- Bill Analysis, H.B. 804 (78th Legislature), Texas Legislature, 2003
- Clearing the Air Around the Texas Minimum Wage Act, Every Texan, 2018-05-07