Texas will continue to adhere to the federal minimum wage, but cities like Austin and Houston are set to significantly increase their local minimum wages, surpassing the federal rate.
Despite the pressures of inflation and the increase in minimum wage across more than 20 states in the U.S., Texas has yet to pass state legislation to raise the federal base established in 2009. That year marked a slight increase in the state minimum wage. However, some cities have taken proactive steps and implemented local wage increases to counteract the rising cost of living.
Although the state minimum wage remains stagnant, Austin and Houston serve as prime examples of how some cities are opting to set higher wages to improve their workers’ conditions.
These local initiatives highlight the importance of addressing the economic realities faced by workers in different parts of Texas. By setting higher minimum wages, Austin and Houston are taking significant steps to enhance the quality of life for their residents..
Official Minimum Wage in Texas for 2025
The minimum wage in Texas will remain at USD 7.25 per hour, in line with the federal baseline. Since 2009, Texas has not implemented any changes to its minimum wage, unlike other states that have opted to increase their rates to counteract inflation. Consequently, workers in Texas earning the minimum wage continue with the same rate that was set over a decade ago, raising concerns in various sectors.
