What is the minimum wage in Texas in 2025?

Texas sets its minimum wage at the federal level. The Texas Labor Code §62.051 explicitly adopts the federal Fair Labor Standards Act (FLSA) rate, which has been $7.25 per hour since July 24, 2009. There is no Texas state minimum wage that exceeds the federal floor, and state law preempts any city or county from setting a higher local rate.

Does Texas have a higher minimum wage than the federal rate?

No. Texas does not set a state minimum wage above $7.25/hour. Unlike states such as California ($16.50/hr) or New York ($16.50/hr), Texas ties its floor directly to the federal FLSA rate. Until Congress raises the federal minimum, Texas workers covered by the FLSA are entitled to exactly $7.25/hour.

How is overtime calculated in Texas?

Under the federal Fair Labor Standards Act (29 U.S.C. §207(a)(1)), any non-exempt employee who works more than 40 hours in a single workweek must be paid at least 1.5 times their regular rate for every hour over 40. Texas follows this rule. The calculator splits your hours into regular (up to 40) and overtime (hours past 40), multiplies overtime hours by 1.5x your wage, and adds both to produce your weekly gross.

What does a Texas minimum-wage worker earn in a year?

A worker earning exactly $7.25/hour for a standard 40-hour week earns $290.00 per week, $1,256.67 per month (using the exact 52-week average), and $15,080.00 per year before taxes. Adding just 5 hours of overtime each week at 1.5x ($10.875/hr) raises the annual total to roughly $17,927.50 — an increase of nearly $2,848.

Are all Texas workers covered by the $7.25 minimum wage?

Most, but not all. Key exemptions under the FLSA include tipped employees (who may receive a direct cash wage as low as $2.13/hr provided tips bring total hourly pay to at least $7.25), certain agricultural workers, independent contractors, and some small-business employees not covered by the FLSA. The Texas Workforce Commission (TWC) can advise on whether your specific role falls under state or federal coverage.

Can my Texas employer pay me less than $7.25/hour?

No, for most covered workers. Paying below the FLSA minimum is a federal violation that can result in back-pay liability, civil penalties and, in willful cases, criminal prosecution. Limited exceptions exist — youth workers aged 20 and under may be paid a federal training wage of $4.25/hour for the first 90 consecutive calendar days of employment — but these are narrow and time-limited. If you believe you are being underpaid, file a complaint with the U.S. Department of Labor Wage and Hour Division or the Texas Workforce Commission.

Texas Minimum Wage Calculator

The Texas minimum wage sits at $7.25 per hour — identical to the federal rate set by the Fair Labor Standards Act (FLSA). Texas Labor Code §62.051 adopts the federal floor by reference, which means every upward or downward change at the federal level is automatically mirrored in Texas. The state also preempts cities and counties from enacting their own higher local minimums, so $7.25 is the single effective floor across all of Texas, from Houston and Dallas to El Paso and Amarillo.

This calculator lets you enter any hourly wage (the Texas minimum is pre-filled), choose your hours per week, and instantly see your gross weekly, monthly and annual pay — including FLSA overtime at 1.5x for every hour beyond 40 in a workweek. Nothing is sent to a server; all arithmetic happens locally in your browser.

How the calculation works

The calculator splits your weekly hours into two buckets:

Regular hours — up to and including 40 hours, paid at your base wage.
Overtime hours — every hour past 40, paid at 1.5x your base wage (the FLSA “time-and-a-half” rule).

Weekly gross = (regular hours x hourly wage) + (overtime hours x hourly wage x 1.5)

Monthly gross uses the statistically exact average of 52 weeks per year divided by 12 months, which is more accurate than the common “4 weeks per month” shortcut:

Monthly gross = weekly gross x 52 / 12

Annual gross is simply weekly gross x 52.

All figures are gross (before tax). Federal income tax, Texas has no state income tax, Social Security (6.2%) and Medicare (1.45%) are not deducted here.

Worked example

A food-service worker in Austin earns the Texas minimum of $7.25/hour and works 45 hours in a week — 40 regular plus 5 overtime:

Component	Calculation	Amount
Regular pay	40h x $7.25	$290.00
Overtime pay	5h x $10.875 (1.5x)	$54.38
Weekly gross		$344.38
Monthly gross	$344.38 x 52 / 12	$1,492.31
Annual gross	$344.38 x 52	$17,907.76

Compare that to the federal minimum at a straight 40-hour week: $7.25 x 40 x 52 = $15,080.00/year. The five hours of weekly overtime adds roughly $2,828 annually — nearly two months of part-time earnings at the base rate.

Texas minimum wage context

Texas is one of roughly 20 states that have not enacted a state minimum wage above the federal $7.25 floor. The federal rate has been frozen since 2009 — the longest stretch without an increase in the history of the FLSA (enacted 1938). In real (inflation-adjusted) terms, $7.25 in 2025 buys significantly less than it did when first set.

Several Texas cities — most notably Austin and San Antonio — have previously passed local minimum wage ordinances, but the Texas Supreme Court has upheld the state’s preemption, invalidating those local rules. Workers in Texas seeking wages above $7.25 must negotiate directly or find employers who voluntarily pay more; a growing number of large Texas employers pay $12–$15 or above as a floor due to competitive labor markets.

Tipped employees in Texas may receive a direct cash wage as low as $2.13/hour provided that tips bring total hourly compensation to at least $7.25. If total tips fall short in any given workweek, the employer must make up the difference.