As several states and cities across the United States prepare to update their minimum wages in 2026, Texas remains unchanged. State law determines the basic income $7.25 per hourthe same amount established by federal regulations since 2009. This directly impacts Houston, the most populous city in the Lone Star State, where the majority of employees will continue to be subject to this salary level.
Texas adopted the federal minimum wage more than a decade ago and created its own minimum wage law. This regulation provided for exceptions and, above all, prohibited cities from setting salaries that were above the federal amount. For this reason, Houston cannot unilaterally change its basic incomeeven if other regions of the country achieve higher values.
Despite this limit, many workers in Houston earn income above the minimum wage. The law does not prevent employees and employers from negotiating collective bargaining increases or special agreements to increase wages. However, the official lower limit remains frozen and will remain the same in January 2026, as the Texas Workforce Commission reports.
There is also a special rule for those who receive a significant portion of their income from tips. In these cases, the employer can include the premiums in the final calculation. If the employee receives at least $5.12 per hour in tips, The company is only obligated to pay you $2.13 per hour as a basic salary.
The Minimum Wage Act also provides for situations in which the employer can offer a wage that is below the minimum wage. This occurs in individuals who are patients or customers of the Texas Department of State Health Services, as well as other cases related to age or productivity. The regulation also includes provisions for piecework agricultural workers, a reporting requirement for non-exempt workers and civil remedies for non-compliance.
The Texas Workforce Commission (TWC) identifies a broad list of exemptions. The rule does not apply to those already covered by the Fair Labor Standards Act (FLSA). Nationwide and excludes activities such as employment in religious, educational or non-profit organizations, as well as professional functions, sales, domestic work, some youth and students, inmates, family members and recreational facilities. Sectors such as milk production, livestock farming and sheltered workshops are also left out.
In the particular case of agricultural work, wages are determined on a piece basis and depend on rates set by the Commissioner of Agriculture based on the performance of an average worker.
Although the minimum wage remains frozen, the reality of wages in Houston is different. According to ZipRecruiter platform data as of December 2025, A Hispanic worker earns an average of $29.71 per hourwhich is about $61,787 per year. This figure is slightly above the national average of $24 per hour and highlights the gap between the regulated basic income and what many workers actually receive in the local labor market.
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