Texas Minimum Wage: Rate, Tipped Wage, and Local Rules

As of 2026, the Texas minimum wage is $7.25 per hour, the same as the federal minimum under the Fair Labor Standards Act (FLSA). Texas does not set its own independent dollar figure. Instead, the Texas Minimum Wage Act (Texas Labor Code Chapter 62) ties the state rate directly to the federal minimum wage: under Texas Labor Code Section 62.051, the state minimum is the amount set by Section 6 of the FLSA. That means whenever Congress raises the federal floor, Texas rises with it automatically, but Texas has no higher state-specific rate, no inflation indexing, and no scheduled state increases of its own.

Because the federal minimum wage has stayed at $7.25 since 2009, the Texas minimum wage has also remained $7.25 for that entire period. Workers should still confirm the current figure, because the number is driven by federal law that can change. The authoritative state source is the Texas Workforce Commission (TWC), and the federal source is the U.S. Department of Labor (DOL) Wage and Hour Division.

How the Texas Rate Compares to the Federal Baseline

Many states set a minimum wage above the federal $7.25 floor; Texas is not one of them. Texas is among the states whose minimum wage matches the federal baseline exactly. For the great majority of covered, non-exempt Texas employees, the practical floor is therefore $7.25 per hour.

Two layers of law can apply to a Texas worker at once. The FLSA covers most employees nationwide (generally those of enterprises with at least $500,000 in annual business, plus individuals engaged in interstate commerce). Where the FLSA applies, its $7.25 floor and its time-and-a-half overtime rule for hours over 40 in a workweek govern. Texas Labor Code Chapter 62 fills gaps for some workers not covered by the FLSA, but it mirrors the same $7.25 figure. When both apply, the worker is entitled to the higher protection, which in Texas is simply $7.25 either way.

Tipped Employees and the Tip Credit

Texas follows the federal tip-credit structure. An employer of a tipped employee may pay a cash wage of $2.13 per hour and claim a tip credit of up to $5.12 per hour toward the $7.25 minimum, as authorized under Texas Labor Code Section 62.052 and the parallel FLSA rules. The key requirement is that the cash wage plus tips actually received must add up to at least $7.25 per hour for every hour worked.

If a tipped worker's tips fall short in a given workweek, the employer must make up the difference so the employee still earns at least the full $7.25 average. A few important conditions apply:

• A tipped employee is generally one who customarily and regularly receives more than a set monthly amount in tips (commonly described as more than $20 per month under federal standards).
• The employer must inform the employee that it is taking a tip credit before relying on it.
• Tips are the property of the employee. Valid tip pools may be allowed among employees who customarily receive tips, but employers, managers, and supervisors generally may not keep employees' tips.
• If an employer does not meet these conditions, it loses the tip credit and owes the full $7.25 cash wage.

No Scheduled Increases or Inflation Indexing

Unlike a number of states that raise their minimum wage on a fixed annual schedule or adjust it each year for inflation, Texas does neither at the state level. Chapter 62 contains no cost-of-living escalator and no built-in step increases. The Texas rate moves only if and when the federal FLSA minimum changes. This is why the Texas figure can stay flat for many years while other states climb past it.

City and County Minimum Wages

Texas law blocks local governments from setting their own higher minimum wage for private-sector employers. Under Texas Labor Code Section 62.0515, the minimum wage established by Chapter 62 supersedes a wage rate established by a municipality, county, or other political subdivision. In plain terms, a Texas city or county cannot pass an ordinance forcing private employers to pay more than $7.25 per hour. This is a meaningful difference from states that allow or even encourage local minimum-wage ordinances.

There are limited carve-outs. The state preemption statute does not reach certain situations, such as wages a governmental entity pays its own employees or sets through its own contracts. Some Texas cities and counties have adopted higher pay floors for their own public employees or for workers on certain government contracts, but those local actions do not raise the wage floor for private businesses across the city. If you work for a city, county, or on a public contract, check that entity's specific policy.

Exemptions to Watch For

Not every worker is entitled to $7.25 in cash wages. Both federal and Texas law recognize exemptions and special categories, including:

• Bona fide executive, administrative, and professional employees who meet the FLSA salary and duties tests (the "white-collar" exemptions).
• Outside sales employees and certain computer professionals.
• Some agricultural workers, and certain seasonal or recreational establishment employees.
• Family members in some small-business contexts and specific categories listed in Chapter 62.
• Workers paid subminimum training or youth rates only where federal law permits.

Chapter 62 also lists employers and employees who are not covered by the state act at all, often because they are already covered by the FLSA. Because misclassification is common, it is worth confirming your category rather than assuming an exemption applies.

How to Enforce Your Rights

If you believe you were paid less than $7.25 per hour, or a tip credit was misused, you have more than one avenue:

• File with the U.S. Department of Labor, Wage and Hour Division. Because most Texas employers are covered by the FLSA, federal enforcement is often the most direct route for minimum-wage and tip-credit violations. The DOL can investigate and recover back wages.
• Texas Workforce Commission (TWC). TWC administers the Texas Payday Law, which lets employees file a wage claim to recover earned, unpaid wages. This is especially useful when an employer simply failed to pay agreed or owed wages.
• Private lawsuit. The FLSA allows employees to sue for unpaid minimum wages and, in many cases, an equal amount in liquidated (double) damages plus attorney's fees.

Keep your own records: pay stubs, schedules, hours worked, and tip totals. Strict time limits apply to wage claims (the FLSA generally allows two years, or three years for willful violations, and the Texas Payday Law has its own filing deadline), so act promptly.

Where to Confirm the Current Rate

Always verify the current number before relying on it. For the Texas position, check the Texas Workforce Commission (twc.texas.gov). For the federal minimum wage and tip rules that drive the Texas figure, check the U.S. Department of Labor Wage and Hour Division (dol.gov). Because the Texas rate is pegged to federal law, any federal increase is the event most likely to change what you are owed.

Official Texas Sources

This page is based on Texas employment law. Rules and figures change — verify the current details directly with the official Texas sources below. This is general legal information, not legal advice.

• Texas Workforce Commission — official Texas agency.
• Texas Payday Law - Wage Claim (TWC Wage and Hour Department)
• Texas Labor Code, Chapter 61 - Payment of Wages (Texas Payday Law)

Federal law and local ordinances may also apply. Federal laws like the Fair Labor Standards Act set a national floor, and your city or county may add protections (such as a higher local minimum wage or paid sick leave). Check both alongside Texas state law.