Texas is one of the largest and economically strong states in the U.S. Discussion of Texas’s minimum wage is essential as the job market remains on an upward trend. Texas has one of the lowest minimum wage levels in the country, which is $7.25 per hour.
For 2025, the Texas minimum wage continues to be the same as the rate prescribed by the federal standard. Future changes will depend on overall market conditions. So, the workers continue to earn the same base hourly wage regardless of their location.
The Texas Minimum Wage and Its Significance
The minimum wage in Texas plays a major role in transforming the labor market and overall economic well-being. As the state follows the federal standard, employers have a good knowledge of the labor costs, which helps in attracting more businesses. Texas is known for its consistent job opportunities and the fact that many regions are affordable to live in. But at the same time, there is a debate about whether $7.25 per hour is sufficient to meet the financial needs, especially in higher cost areas like Dallas, Houston, and Austin. A controversy arises when discussing the rising living expenses and the low minimum wage.
Major Texas Cities and How Their Minimum Wages Compare
Texas does not allow municipalities to set their own local wage rules. The major cities like Houston, Austin, Dallas, San Antonio, and Fort Worth have the same minimum wage of $7.25 per hour. There are some cities that pay higher salaries to their employees, but these hikes apply only to government workers. Private businesses are not under this rule.
Texas Minimum Wage Across Key Industries
Though the base hourly wage remains $7.25 for most workers, certain categories of employees fall under federal exemptions or special wage rules. These differences are not based on industry needs but on how the Fair Labor Standards Act (FLSA) classifies specific types of work.
Agricultural Workers
Some agricultural workers are exempt from the federal minimum wage depending on factors such as the size of the farm, the type of employer, and whether the farm meets certain FLSA coverage requirements. These exemptions are based on federal legal definitions, not on the worker’s role or how much labor is used.
Tipped Employees
Some workers, such as servers and bartenders, are paid a lower base wage, as their tips would compensate their earnings up to the minimum wage of $7.25. When the compensation doesn’t reach the minimum wage, the employers make up the difference.
Seasonal and Youth Workers
Employers can pay workers under the age of 20 a lower “training wage” during their first 90 days on the job. This rule is meant to encourage businesses to hire young people for entry-level or short-term roles. After the 90-day period ends, these workers must be paid the full federal minimum wage of $7.25 per hour, like any other employee.
Small Businesses
Some very small businesses may be exempt from the federal minimum wage, but the rule is more specific than simply “not engaging in multistate trade.” Under the FLSA, employers must either be part of interstate commerce or have annual gross sales of at least $500,000 to be fully covered. Businesses that fall below these thresholds may not be required to pay the federal minimum wage.
FAQs
1. What is the current minimum wage in Texas?
The Texas minimum wage is $7.25 per hour, matching the federal minimum.
2. Can Texas cities set their own minimum wage?
No. State law prevents cities from establishing local minimum wages for private employers.
3. Do tipped workers earn the same minimum wage?
Tipped employees can earn a base wage of $2.13 per hour, provided their tips bring them to at least $7.25.
4. Is the minimum wage in Texas expected to increase soon?
No state-level increases are scheduled. Any change would likely come from federal legislation.
5. Does Texas adjust its minimum wage for inflation?
No. Texas does not have an automatic inflation adjustment.