In 2021, Texas’ state minimum wage has remained the same as years gone by, it follows the federal minimum wage currently sitting at $7.25 per hour. As most US states increase their minimum wage rate per year, Texas refuses to do so. The hourly rate of $7.25 has been the ongoing minimum wage in Texas for over 10 years, since 2009.
Did the Texas Minimum Wage Go Up?
The graphic below highlights the Texas minimum wage over the past several years. The minimum wage did not go up and remains at $7.25 per hour in 2021.
Texas Minimum Wage 2021
Texas as a state abides by the federal minimum wage, however, many of Texas’ major cities have boosted their pay, so even though the state minimum wage is in line with the Federal rate, many employers are paying their employees above the state minimum wage of $7.25p/hr. You can stay up-to-date on the latest laws on the US Department of Labor website.
Although the Texas minimum wage 2021 is at $7.25 per hour, there are some exceptions to this due to unique employment situations.
Tipped employees, for example, are entitled to a minimum wage of $2.13 per hour. However, they must be paid $5.12 at the least in tip credit so that the full employee wage amounts to at least $7.25 (the Texas minimum wage over the years has remained the same).
If you would like to register a new business in Texas, check out our ultimate guide on How to Register a Business in Texas.
There are many interesting facts about Texas that you probably haven’t heard of. Feel free to check out a comprehensive list of them that also includes some very important economic facts if you are looking to start your own business or franchise or get a job in the state.
Texas Minimum Wage History
The table below shows the Texas minimum wage over the years. There have been no material changes to the minimum wage in Texas since 2009 when it increased from $6.55 per hour to $7.25 per hour. The Texas minimum wage history does not seem to look much different to its future as there are no immediate plans to increase the minimum wage in the state, and the federal minimum wage rate remains the same, also, at $7.25 per hour.
This is not necessarily bad news for Texas employees as the number of workers that are being paid the minimum wage has reduced considerably from 2012 to 2017 (latest available data). In 2012, Texas had 452,000 workers making the minimum wage or less, according to federal data. By 2017, that number had fallen to 196,000, despite a slight increase in hourly workers.
An advantage that Texas has is that the income tax rate in the state is 0%. So, if you are earning the Texas minimum wage of $7.25 per hour, your gross annual pay for a full-time position of 40-hours per week would typically be $15,080.04, and you would pay no income tax in Texas on this.
|State||Wage||Year||$ Wage Increase||% Increase|
|Texas Minimum Wage 2021||$7.25||2021||$0||0%|
|Texas Minimum Wage 2020||$7.25||2020||$0||0%|
|Texas Minimum Wage 2019||$7.25||2019||$0||0%|
|Texas Minimum Wage 2018||$7.25||2018||$0||0%|
|Texas Minimum Wage 2017||$7.25||2017||$0||0%|
|Texas Minimum Wage 2016||$7.25||2016||$0||0%|
|Texas Minimum Wage 2015||$7.25||2015||$0||0%|
|Texas Minimum Wage 2014||$7.25||2014||$0||0%|
|Texas Minimum Wage 2013||$7.25||2013||$0||0%|
|Texas Minimum Wage 2012||$7.25||2012||$0||0%|
|Texas Minimum Wage 2011||$7.25||2011||$0||0%|
|Texas Minimum Wage 2010||$7.25||2010||$0||0%|
|Texas Minimum Wage 2009||$7.25||2009||$0.70||10.6%|
|Texas Minimum Wage 2008||$6.55||2008||$0||0%|
Texas minimum wage history for 10+ years – downloadable PDF below
Texas Minimum Wage History – Downloadable PDF
EIN Number Texas
As a Texas business owner and employer, or someone that is looking to register an LLC or an incorporated company in Texas with the goal of hiring employees, now, or in the future, you will need to have a Texas EIN number.
An EIN is also known as an Employer Identification Number and is issued by the internal revenue service (IRS). We have created a guide on how to get your Texas EIN with the IRS, and it includes links to the appropriate sources and forms and the differences between whether you are a U.S. citizen or foreign national applying for a Texas EIN.