See exactly how much you take home working full time at Texas's 7.25/hr minimum wage after federal income tax, Social Security and Medicare.
The minimum wage in Texas is $7.25 per hour in 2026. Working a standard 40-hour week for 52 weeks, your gross annual income is $15,080. After federal income tax, Social Security, and Medicare, your estimated take-home pay is $13,878 per year.
Note: Texas has no state income tax — your actual take home may be higher than this federal-only estimate.
| Time Period | Gross Pay | Federal Tax Est. | Take Home |
|---|---|---|---|
| Hourly | $7.25 | $0.58 | $6.67 |
| Weekly (40 hrs) | $290 | $23 | $266 |
| Monthly | $1,256.67 | $100.53 | $1,156 |
| Annual | $15,080 | $1,202 | $13,878 |
Working at the Texas minimum wage of $7.25/hr, three federal taxes are deducted from every paycheck:
Data sources: Minimum wage rates from U.S. Department of Labor, Wage and Hour Division. Tax calculations based on 2026 IRS federal tax brackets. State-specific rates verified against state labor department websites. Last updated: April 2026
Disclaimer: These calculators provide estimates for federal taxes only and should not be considered tax advice. Actual take-home pay may vary based on additional deductions, state/local taxes, filing status, and other factors. Consult a tax professional for personalized advice.
The 2026 minimum wage is $7.25/hr, but the MIT-calculated living wage for a single adult in this state is approximately $17.42/hr (MIT Living Wage Calculator, Harris County (Houston) single adult 2026). That's a gap of $10.17/hr between legal minimum and economic sufficiency.
Texas has one of the lowest minimum wages in the country at $7.25/hr — unchanged since 2009 and tied directly to the federal rate. Texas's 'Death Star' preemption statute (SB 2 from 2021) explicitly prohibits any city or county from enacting a higher local minimum wage, meaning the $7.25 rate applies uniformly from El Paso to Dallas. However, Texas workers benefit significantly from zero state income tax. A Texas minimum wage worker takes home more per dollar earned than comparable workers in states with income taxes — and the OBBBA federal overtime exemption applies in full, with no state-level offset.
| City/Category | 2026 Local Wage | Notes |
|---|---|---|
| Statewide | $7.25 | Matches federal minimum |
| City/County Overrides | None | 'Death Star' preemption law blocks local increases |
| Tipped Workers | $2.13 | Federal tipped minimum applies |
| Austin / Dallas / Houston | $7.25 | State law prevents city increases |
Next increase: No scheduled increase — Texas minimum wage tied to federal rate of $7.25 (unchanged since 2009)
For the official rate schedule, visit the state Department of Labor website.
$2.13 federal tipped minimum applies
No state income tax — Texas workers keep all OBBBA federal overtime and tip exemptions in full
Under the federal One Big Beautiful Bill Act (OBBBA), overtime premiums are federally tax-free up to $12,500 (single) and tips are federally tax-free up to $25,000. Whether this benefit is offset by state taxes depends on your state's OBBBA coupling status above.