United States · Texas · Minimum wage
Texas minimum wage 2027.
The Texas minimum wage for 2027, whether it changes from 2026, and what it pays by the week, month and year.
Short answer: Texas's minimum wage is $7.25 an hour, because Texas Labor Code section 62.051 adopts the federal minimum wage rather than setting a dollar figure, and no change for 2027 is published as of November 9, 2026. The tipped cash wage is $2.13 an hour under the federal rule the state adopts, for workers who customarily receive more than $20 a month in tips. A city cannot set a different private-employer minimum.
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Tipped worker top-up
The Texas minimum wage in 2027
Texas does not have its own dollar figure. Section 62.051 of the Texas Labor Code, part of the Texas Minimum Wage Act, says an employer shall pay each employee the federal minimum wage under section 6 of the Fair Labor Standards Act. The U.S. Department of Labor state table, updated November 5, 2026, lists $7.25 for Texas and notes that the state law does not contain current dollar minimums, adopting the federal rate by reference and excluding employment subject to the federal act.
| Item | 2026 | 2027 |
|---|---|---|
| Minimum wage | $7.25 | $7.25 (the federal rate, no change published) |
| Tipped employees, cash wage | $2.13 | $2.13 |
| Tip credit | $5.12 | $5.12 |
| Tips for tipped status | More than $20 a month | Same |
What changed from 2026
Nothing is published for 2027. Because the Texas rate is the federal rate by reference, a change would come from a change to the federal minimum wage, not from a Texas rule, and the federal $7.25 is unchanged on the U.S. DOL table as of November 5, 2026.
Tipped workers and local rules
Section 62.052 sets the wage of a tipped employee by reference to the federal tip rules and defines a tipped employee as one who customarily and regularly receives more than $20 a month in tips. The U.S. DOL tipped table shows a $2.13 cash wage and a $5.12 tip credit for Texas. Section 62.0515 provides that the state minimum wage supersedes a minimum wage in a city ordinance, order or charter governing wages in private employment, with an exception for terms of a public contract or certain agreements with governmental entities.
Worked example (2027)
A full-time worker at the Texas minimum of $7.25 an hour, 40 hours a week, earns $290.00 a week, $580.00 every two weeks, $1,256.67 a month and $15,080.00 a year (2,080 hours) before tax. Part-time at 25 hours a week is $181.25 a week and $9,425.00 a year. For a tipped worker the direct cash wage is $2.13. With 30 hours a week and tips averaging $4.00 an hour, pay is $6.13 an hour against $7.25, so the employer owes a top-up of $1.12 an hour, $33.60 for the week.
Common mix-ups
- Texas does not set its own number. Section 62.051 adopts the federal minimum wage, so the rate moves only when the federal rate does.
- Most employers are covered by federal law anyway. The state law and municipal ordinances do not apply to a person covered by the Fair Labor Standards Act, according to Labor Code section 62.151.
- Cities cannot set a private-employer minimum. Section 62.0515 says the state minimum supersedes a local wage ordinance for private employment, other than wages under a public contract.
- The tipped cash wage is $2.13. Tips must bring the total to $7.25 an hour, and tipped status needs more than $20 a month in tips.
- Public contracts can carry their own minimum. Section 62.0515 leaves wages under a public contract, and certain agreements with governmental entities, outside the state override of local wage rules.
Method
The converter multiplies the hourly rate by your hours per week for weekly pay, doubles it for two weeks, multiplies by 52 weeks (2,080 hours at 40 a week) for annual pay and divides the annual figure by 12 for a month. It is gross pay before tax. The tipped-worker check adds the $2.13 cash wage and your average tips per hour and compares the total with $7.25. If it falls short, the shortfall times your hours is the weekly top-up. The Texas Workforce Commission site blocked access from this connection, so the rate is sourced from the Texas Labor Code and the U.S. Department of Labor. Figures were read on November 9, 2026.
What this does not cover
- Exemptions under the Texas Minimum Wage Act, such as certain youth, student and agricultural employment.
- Overtime, which follows federal law, and public contract wage rules.
- The Texas Workforce Commission's own guidance, which was not readable from this connection.
- Taxes and deductions: pay here is gross pay before tax.
Figures read from the sources below on November 9, 2026. Last updated November 9, 2026.
Sources
- Texas Constitution and Statutes: Labor Code chapter 62, Texas Minimum Wage Act (sections 62.051, 62.052, 62.0515, 62.151) (retrieved November 9, 2026)
- U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026) (retrieved November 9, 2026)
- U.S. Department of Labor: Minimum Wages for Tipped Employees (retrieved November 9, 2026)
Frequently asked questions
What is the minimum wage in Texas in 2027?
Texas's minimum wage is $7.25 an hour, the federal minimum wage that Labor Code section 62.051 adopts. No 2027 change is published as of November 9, 2026.
Does Texas have its own minimum wage?
The Texas Minimum Wage Act sets the minimum by reference to the federal rate and has no separate dollar figure.
What is the Texas tipped minimum wage?
A cash wage of $2.13 an hour under the federal rule the state adopts, for employees who customarily receive more than $20 a month in tips.
Can Texas cities set a higher minimum wage?
Labor Code section 62.0515 provides that the state minimum supersedes a wage in a local ordinance, order or charter for private employment, with an exception for public contracts and certain agreements with governmental entities.
How much is $7.25 an hour a year?
At 40 hours a week for 52 weeks it is $15,080.00 before tax, or $290.00 a week.
Will the Texas minimum wage rise in 2027?
Only if the federal minimum wage rises, because the Texas rate is the federal rate by reference. The U.S. DOL table shows $7.25 as of November 5, 2026.
Where is the official text?
Texas Labor Code chapter 62 and the U.S. Department of Labor state table, both linked in the sources section.
Not legal advice
This page is general information from an unofficial guide, not legal, payroll or tax advice. Wage laws change and exemptions apply to some workers. Confirm the rate with the state labor agency before you set pay. Nothing you type is sent anywhere.