Minimum Wage in Dallas Texas

Author: Jason Coles

Updated On:

Updated On:

The minimum wage in Dallas, TX is $7.25 per hour in 2023.

Dallas is certainly one of the most iconic and well-known cities in the United States. Many people choose Dallas as their place to live and work due to the continued support for small and large businesses, a fantastic and stable economy, which opens many doors for job opportunities, and a low cost of living when compared with similar U.S. cities.

The following graphic shows the Dallas minimum wage rate over the past several years, which, unfortunately for many who work for the minimum wage, has not increased.

The weekly minimum wage in Dallas equates to $290 ($7.25×40) if you are working a full 40-hour week. There are, however, some exceptions to this hourly wage for student workers, tipped employees, and overtime workers, who may receive varying minimum wage rates.

Dallas Minimum Wage Exemptions

Dallas does not have its own specific minimum wage policy, which is why it defaults to the federal minimum wage rate that the state of Texas follows.

There are rules and laws in place to ensure that employers are paying their employees the minimum wage or above in Dallas, Texas unless they are exempt employees.

Below we have listed all the minimum wage rates for exempt employees in Dallas:

  • Dallas’ minimum wage for tipped employees is $2.13 per hour with a tip credit rate of $5.12.
  • Student-workers (full-time high school or college) in Dallas are paid a minimum wage of $6.16 per hour for up to 20 hours of work a week. If they work in excess of 20 hours per week they are eligible for the full minimum wage of $7.25.
  • The overtime minimum wage in Dallas is $10.88 per hour for every hour worked in excess of 40 hours per week.
  • The minimum wage for employees under the age of 20 is $4.25 per hour for the first 90 days of employment. After this, they are eligible for the Dallas minimum wage rate of $7.25 per hour.

What is the Dallas Living Wage?

Due to Dallas being such a big expansive city with a large population and competitive job market, you would expect the minimum wage to be higher for the city. But unfortunately for many, Dallas still follows the state minimum wage rate of $7.25 per hour.

However, there is a ‘living wage’ for Dallas, which is calculated based on how much a person needs to pay their bills, food, and general cost of living expenses while living in the city.

So, the living wage for an adult living alone with no children in Dallas is $18.24 per hour (via Living Wage Calculator), which is $10.99 higher than the minimum wage for the state itself.

Fortunately, most employers in Dallas take this into account when they contemplate how much they should be paying employees within the city. Taking all of the living expenses into account, the living wage annual salary (for a full-time person) in Dallas is $37,075 before state income tax in Texas.

Dallas Living Wage for 1 Adult

Below is a table representing the living wage in Dallas for a single adult, with different living wages for the additional amount of children they live with and care for.

Single Adult0 Children1 Child2 Children3 Children
Living Wage$18.24$35.74$45.15$58.80
Poverty Wage$6.53$8.80$11.07$13.34

Dallas Living Wage for 2 Adults

The table below showcases the living wage in Dallas for 2 adults with only one working, including the costs for the different numbers of children.

2 Adults (1 working)0 Children1 Child2 Children3 Children
Living Wage$28.20$34.54$39.31$43.65
Poverty Wage$8.80$11.07$13.34$15.61

What is the Average Wage in Dallas?

According to zippia.com, the average base hourly rate is $22.00 per hour in Dallas. If you worked full-time (40 hours per week or 2080 hours per year), your average annual gross income would be $45,760. So, as an employee or future employee in Dallas, you have a good chance of being paid a higher wage than the minimum wage of $7.25 per hour.

Fortunately, the average wage in Dallas is just an average calculation, and you could certainly earn more than this when moving to the state. However, you may be paid even less, with the minimum wage being $7.25 per hour, which is the case for many Servers in Texas.

If the living wage in Dallas is $18.24 and the average salary equates to an effective hourly rate of $22.00 per hour, Dallas can be considered a good choice for those seeking a move to the Big D.

Dallas Minimum Wage History

The table below displays the historical minimum wage rates in Dallas since 1983. As you can see from the table that is in date order, we have also included the percentage increases as well as the dollar increase per year.

Texas CityWage Year$ Wage Increase% Increase
Dallas$7.252023$00%
Dallas $7.252022$00%
Dallas$7.252021$00%
Dallas$7.252020$00%
Dallas $7.252019$00%
Dallas $7.252018$00%
Dallas $7.252017$00%
Dallas $7.252016$00%
Dallas$7.252015$00%
Dallas $7.252014$00%
Dallas $7.252013$00%
Dallas$7.252012$00%
Dallas $7.252011$00%
Dallas $7.252010$00%
Dallas $7.252009$0.7010.6%
Dallas $6.552008$00%
Dallas $6.552007$0.7011.96%
Dallas $5.852006$0.7013.59%
Dallas $5.152005$00%
Dallas $5.152004$00%
Dallas $5.152003$00%
Dallas $5.152002$053.73%
Dallas $3.352001$00%
Dallas $3.352000$00%
Dallas$3.351999$00%
Dallas $3.351998$00%
Dallas $3.351997$00%
Dallas $3.351996$00%
Dallas $3.351995$00%
Dallas $3.351994$00%
Dallas $3.351993$00%
Dallas $3.351992$00%
Dallas $3.351991$00%
Dallas $3.351990$00%
Dallas $3.351989$00%
Dallas $3.351988$00%
Dallas $3.351987$1.95139.28%
Dallas $1.401986$00%
Dallas$1.401985$00%
Dallas $1.401984$00%
Dallas$1.401983$00%

Final Thoughts

The minimum wage in Dallas is the same rate as the Texas state minimum wage, which also follows federal guidelines, resulting in an hourly wage for both Dallas and Texas of $7.25 per hour. As an employee in Dallas, you must be paid this wage or higher by law.

The living wage is significantly higher than the minimum wage within the city, which is why many Dallas employers will pay more than $7.25 per hour to their employees.

Minimum Wage Rates for each State

Texas

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Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S. who refer his services to their clients regularly, Jason has written over 1,345 business plans across the past 17+ years for start-up companies and franchises looking to expand their footprint in the United States. Jason is considered a seasoned expert in his field. He creates detailed business plans for his clients that include five-year financial projections, market and industry analysis reports, demographic studies, organizational charts, job descriptions, employee hiring plans, and more.