How Much Do You Take Home on Minimum Wage in Texas?
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 $13,926 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 | $0.55 | $6.70 |
| Weekly (40 hrs) | $290 | $22 | $268 |
| Monthly | $1,256.67 | $96.13 | $1,161 |
| Annual | $15,080 | $1,154 | $13,926 |
What Taxes Come Out of a Minimum Wage Paycheck in Texas?
Working at the Texas minimum wage of $7.25/hr, three federal taxes are deducted from every paycheck:
- Federal Income Tax - $0. At $15,080 annual income you are below the $16,100 standard deduction for 2026 (single filer), so no federal income tax is owed on full-time minimum wage earnings.
- Social Security (6.2%) - Deducted on all earned income up to the 2026 wage base of $184,500. Minimum wage earnings are always fully subject to it.
- Medicare (1.45%) - Deducted on all earned income with no cap.
How This Is Calculated: Texas Worked Example
Every figure in the table above comes from the same four-step calculation, using the 2026 IRS standard deduction, 2026 federal tax brackets, and current FICA rates. Here is the full math for one year of full-time work at the Texas minimum wage:
- Step 1 - Annual gross pay: $7.25/hour × 40 hours × 52 weeks = $15,080.
- Step 2 - Apply the standard deduction: The 2026 IRS standard deduction for a single filer is $16,100.
- Step 3 - Federal income tax: Taxable income is $15,080 − $16,100 = $0 (the deduction exceeds gross pay). Federal income tax owed: $0.
- Step 4 - FICA taxes: Social Security (6.2%) plus Medicare (1.45%) equals 7.65% of gross pay: $15,080 × 0.0765 = $1,153.62. FICA applies from the first dollar earned - the standard deduction does not reduce it.
Annual take-home: $15,080 − $0 − $1,153.62 = $13,926.38. That matches the Annual row in the table above. Assumptions: single filer, no dependents, standard deduction, no state or local income tax withheld in this federal estimate, no pre-tax benefits. Your actual paycheck may differ - this is an educational estimate, not tax advice.
Texas Minimum Wage FAQ
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.
Browse Minimum Wage After Tax by State
2026 Living Wage vs. Minimum Wage in Texas
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.
Local Minimum Wage Rates - Texas 2026
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 |
Scheduled Minimum Wage 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.
Tipped Employee Minimum Wage
$2.13 federal tipped minimum applies
OBBBA 2026 Overtime & Tips - Texas
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.