Minimum wage in Texas
Texas's basic minimum wage is $7.25 an hour. That equals the federal minimum wage of $7.25, in force since July 24, 2009. Employers may pay tipped employees a cash wage of $2.13 and count tips toward the rest, with a tip credit of up to $5.12. Against Texas's $7.25 floor for FLSA-covered employers, among its 4 neighbors New Mexico ($12.00) and Arkansas ($11.00) are higher and Oklahoma ($7.25) and Louisiana ($7.25 floor; no state law) are the same.
Verified against the U.S. Department of Labor on (DOL's state table updated ). Source: State Minimum Wage Laws, Minimum Wages for Tipped Employees.
At a glance
| Item | Value |
|---|---|
| State minimum wage | $7.25 |
| Against the federal $7.25 | equal to federal |
| Floor for FLSA-covered employers | $7.25 (the higher of the state and federal rates) |
| Scheduled change | None listed by DOL |
| Overtime threshold in state law | None listed by DOL (the FLSA's 40-hour rule applies to covered employers) |
| Tipped cash wage | $2.13 |
| Maximum tip credit | $5.12 |
Rates as DOL lists them
| Rate per hour | Applies to |
|---|---|
| $7.25 | No condition stated by DOL |
Scheduled increases
DOL lists no scheduled increase and no indexing formula for Texas. A change would require new legislation or a ballot measure.
Tipped employees
Texas's required cash wage for tipped employees is the federal $2.13; tips may make up the rest of the applicable minimum wage.
| Row | Combined cash and tip minimum | Maximum tip credit | Minimum cash wage | Tipped employee defined by monthly tips of |
|---|---|---|---|---|
| Texas | $7.25 | $5.12 | $2.13 | More than $20 |
- DOL footnote 12: The minimum wage laws in Kansas, Oklahoma, Texas, and Utah exclude from coverage any employment that is subject to the federal Fair Labor Standards Act.
A dash means DOL left the cell blank. DOL's general footnote 1: Other additional deductions are permitted, for example for meals and lodging.
What DOL also notes
- The State law excludes from coverage any employment that is subject to the federal Fair Labor Standards Act.
- The Texas State minimum wage law does not contain current dollar minimums. Instead the State adopts the federal minimum wage rate by reference.
Neighbors and the federal floor
| State | State rate | Floor for FLSA-covered employers |
|---|---|---|
| Texas | $7.25 | $7.25 |
| New Mexico | $12.00 | $12.00 |
| Arkansas | $11.00 | $11.00 |
| Oklahoma | $7.25 | $7.25 |
| Louisiana | none | $7.25 |
| Federal (FLSA) | $7.25 | $7.25 |
More than one law can apply
DOL states that where federal, state and local minimum wage laws all cover an employer, the employer must pay the highest applicable rate. Whether a particular job is covered by the Fair Labor Standards Act, by Texas's law, or by a city or county ordinance depends on facts this site does not assess. City and county rates are not in DOL's table and are not shown here. This page describes published rates and is not legal advice; for how to raise an underpayment, see FastGuide.
Take-home pay and benefits calculators for Texas
FastCalc, a sister site, has these calculators for Texas. Each takes your own figures; this site computes nothing.
Related
- Texas wage profile: what occupations actually pay in Texas, from BLS data.
- Minimum wage by state and the federal minimum wage.
- Federal versus state minimum wage and tipped wages and tip credits.
- Take-home pay calculator on FastCalc for what $7.25 an hour leaves after withholding; this site computes nothing.