TX minimum wage: $7.25/hr (federal minimum, 2026)
📊 Texas Tax Overview 2026
Texas has NO state income tax — one of only 9 states with zero state income tax on wages. This means your take-home pay is significantly higher than in states like California or New York.
| Taxable Income (Single) | CA Tax Rate | Tax on Bracket |
|---|---|---|
| $0 – $10,412 | 1.0% | up to $104 |
| $10,413 – $24,684 | 2.0% | up to $285 |
| $24,685 – $38,959 | 4.0% | up to $571 |
| $38,960 – $54,081 | 6.0% | up to $907 |
| $54,082 – $68,350 | 8.0% | up to $1,141 |
| $68,351 – $349,137 | 9.3% | up to $26,139 |
| $349,138 – $418,961 | 10.3% | up to $7,192 |
| $418,962 – $698,274 | 11.3% | up to $31,560 |
| $698,275+ | 13.3% | highest bracket |
Source: California Franchise Tax Board (FTB) · 2026 tax year. Standard deduction: $5,202 (single). SDI: 0.9% on all wages. No cap on SDI in 2024+.
💵 Common Hourly Wages — Texas After-Tax
Here's what various hourly wages look like after federal taxes only — Texas has no state income tax or SDI:
| Hourly Rate | Annual Gross | CA State Tax | Take-Home/yr | Take-Home/mo |
|---|---|---|---|---|
| $17/hr | $35,360 | ~$618 | ~$28,950 | ~$2,413 |
| $20/hr | $41,600 | ~$935 | ~$33,800 | ~$2,817 |
| $22/hr | $45,760 | ~$1,155 | ~$36,900 | ~$3,075 |
| $25/hr | $52,000 | ~$1,614 | ~$42,032 | ~$3,503 |
| $30/hr | $62,400 | ~$2,450 | ~$49,900 | ~$4,158 |
| $35/hr | $72,800 | ~$3,350 | ~$57,400 | ~$4,783 |
| $40/hr | $83,200 | ~$4,260 | ~$64,900 | ~$5,408 |
| $50/hr | $104,000 | ~$6,450 | ~$79,600 | ~$6,633 |
🏙️ Major Texas Cities — Cost of Living 2026
Texas cities cannot set their own minimum wage above the state/federal minimum. Here's a cost of living comparison for major TX cities:
📖 Texas Tax Guide for Workers 2026
Texas Has No State Income Tax
Texas is one of 9 states with no state income tax, which means your paycheck deductions are limited to federal income tax and FICA (Social Security + Medicare). This results in significantly higher take-home pay than in states like California, New York, or Oregon.
No Texas SDI
Unlike California, Texas has no State Disability Insurance (SDI) deduction. Texas does not have a state-mandated paid family leave program. However, some TX employers offer private disability insurance and PTO as benefits.
Texas vs. High-Tax States
Compared to California (up to 13.3% state tax) or New York (up to 10.9%), a Texas worker earning $52,000/year keeps approximately $2,100–$2,800 more annually. Texas offers no state income tax, no SDI, low property taxes (relative to income), and a booming economy.
Texas Overtime Law
Texas follows federal FLSA overtime rules: overtime at 1.5× your regular rate applies after 40 hours in a workweek. There is no daily overtime in Texas (unlike California). Use our overtime calculator to see your overtime pay.
California COLA & Living Wage
Texas has a significantly lower cost of living than California or New York. The MIT Living Wage Calculator estimates a single adult in Houston needs ~$19/hr, Dallas ~$20/hr, and Austin ~$22/hr to meet basic needs. Texas's no-income-tax policy means your $25/hr goes much further than in high-tax states.
❓ Frequently Asked Questions
The Texas minimum wage is $7.25/hour — the federal minimum. Texas does not have a state minimum wage higher than the federal rate, and Texas cities/counties cannot set their own higher minimum wages. In practice, many TX employers pay $12–17/hr+ due to the tight labor market.
At $25/hour ($52,000/year) in Texas, there is NO state income tax and NO SDI. You only pay federal income tax (~$4,202 for single filer) and FICA ($3,978). Total deductions are approximately $8,180, leaving a take-home of approximately $42,032–$43,820/year — significantly higher than in tax states.
$25/hour ($52,000/year, ~$3,503/month after tax in TX) is comfortable in most Texas cities. Houston, Dallas, San Antonio, and Fort Worth offer 1-bedroom apartments for $1,100–$1,800/month, making $25/hr very livable. Even in Austin (most expensive TX city), $25/hr is manageable with some budgeting. 30% of take-home = ~$1,051/month for housing.
Texas does NOT have a mandatory state disability insurance (SDI) program. Unlike California (0.9% SDI) or New Jersey (0.09% SDI), Texas workers have no SDI deduction. This means more take-home pay, but also less protection if you become temporarily disabled. Texas workers should consider private short-term disability insurance through their employer or independently.
Texas follows the federal Fair Labor Standards Act (FLSA): overtime at 1.5× your regular rate applies for all hours over 40 in a workweek. There is no daily overtime in Texas (unlike California). Some industries (oil & gas, agriculture) may have different rules. Use our overtime calculator to see your Texas overtime pay.