Texas Minimum Wage Data (1972-2025): Track & Analyze
Is the minimum wage a true reflection of the value of work, or is it a lagging indicator struggling to keep pace with the cost of living? The reality, particularly in Texas, is complex, with the current landscape showcasing a minimum wage that, while seemingly stable, masks a history of erosion in purchasing power and ongoing debates about its impact on workers and the economy.
The state of Texas, a vast and diverse economic landscape, currently adheres to the federal minimum wage standard. This means that the Texas minimum wage aligns with the federal rate, a figure that has remained at $7.25 per hour for quite some time. However, this seemingly simple fact belies a story of economic adjustments, historical shifts, and ongoing discussions about the true value of labor.
To truly understand the significance of the minimum wage in Texas, it's crucial to delve into its historical trajectory. From 1972 to 2025, the evolution of this critical economic indicator reveals both the legislative actions and their tangible effects on the lives of workers across the state. The fluctuations, the periods of stagnation, and the gradual adjustments all paint a picture of how the minimum wage has responded (or failed to respond) to changes in the economy and the rising cost of living.
The Texas Minimum Wage Act, becoming effective in 2009, played a crucial role in clarifying the rights of working individuals. Its a cornerstone in outlining salary rights and detailing provisions for employers, especially in the realm of tipped employees, determining the amount of tip earnings that can be included towards meeting minimum wage requirements.
Examining the trends, one can see that the minimum wage's purchasing power has been significantly reduced. When measured in terms of 1996 dollars, the value of today's minimum wage is about 20% lower. Compared to its peak in 1968, the erosion becomes even more stark, with the current value being nearly 40% lower. This means that, despite nominal increases, the actual ability of minimum wage earners to afford goods and services has diminished over the years. Furthermore, the historical context reveals that the initial minimum wage legislation from 1938 was narrowly focused, applying only to employees involved in interstate commerce or goods production for it. Over time, legislative amendments, like those in 1961 and 1966, widened the scope of the federal minimum wage, bringing more workers under its protection.
Data from the U.S. Department of Labor indicates that the number of hourly paid workers in Texas earning the prevailing federal minimum wage or less has fluctuated over time. In 2006, this figure was the lowest since 1998 when data was first collected. While it is difficult to ascertain an exact current number, it remains an important measure of labor dynamics within the state. The impact of the minimum wage is not uniform across demographic groups. For instance, in 2017, a significant portion of workers earning at or below the federal minimum wage in Texas were women, highlighting the wage's impact on a specific segment of the workforce.
Considering the 2024 federal minimum wage in the context of inflation reveals a considerable decline compared to the minimum wage in 1970. Many states have their own minimum wage laws, and several, including Alaska, Minnesota, Montana, Ohio, South Dakota, and Vermont, automatically adjust their minimum wages based on the cost of living. This automatic mechanism helps maintain the real value of the minimum wage for workers in these areas, which contrasts with the static federal rate.
The table below offers a detailed look at the minimum wage in Texas, covering the period from 1972 to 2025, providing key information about the rate and its progression over the years. This historical perspective is essential for understanding the current economic landscape and the ongoing debates surrounding wage policies.
| Year | Minimum Wage Rate (USD) | Source/Notes |
|---|---|---|
| 1972 | Data Not Available | Data may vary, as state laws can differ. |
| 1973 | Data Not Available | Data may vary, as state laws can differ. |
| 1974 | $1.60 | Federal Minimum Wage |
| 1975 | $2.00 | Federal Minimum Wage |
| 1976 | $2.30 | Federal Minimum Wage |
| 1977 | $2.65 | Federal Minimum Wage |
| 1978 | $2.65 | Federal Minimum Wage |
| 1979 | $2.90 | Federal Minimum Wage |
| 1980 | $3.10 | Federal Minimum Wage |
| 1981 | $3.35 | Federal Minimum Wage |
| 1982 | $3.35 | Federal Minimum Wage |
| 1983 | $3.35 | Federal Minimum Wage |
| 1984 | $3.35 | Federal Minimum Wage |
| 1985 | $3.35 | Federal Minimum Wage |
| 1986 | $3.35 | Federal Minimum Wage |
| 1987 | $3.35 | Federal Minimum Wage |
| 1988 | $3.35 | Federal Minimum Wage |
| 1989 | $3.35 | Federal Minimum Wage |
| 1990 | $3.80 | Federal Minimum Wage |
| 1991 | $4.25 | Federal Minimum Wage |
| 1992 | $4.25 | Federal Minimum Wage |
| 1993 | $4.25 | Federal Minimum Wage |
| 1994 | $4.25 | Federal Minimum Wage |
| 1995 | $4.25 | Federal Minimum Wage |
| 1996 | $4.75 | Federal Minimum Wage |
| 1997 | $5.15 | Federal Minimum Wage |
| 1998 | $5.15 | Federal Minimum Wage |
| 1999 | $5.15 | Federal Minimum Wage |
| 2000 | $5.15 | Federal Minimum Wage |
| 2001 | $5.15 | Federal Minimum Wage |
| 2002 | $5.15 | Federal Minimum Wage |
| 2003 | $5.15 | Federal Minimum Wage |
| 2004 | $5.15 | Federal Minimum Wage |
| 2005 | $5.15 | Federal Minimum Wage |
| 2006 | $5.15 | Federal Minimum Wage |
| 2007 | $5.85 | Federal Minimum Wage |
| 2008 | $6.55 | Federal Minimum Wage |
| 2009 | $7.25 | Federal Minimum Wage |
| 2010 | $7.25 | Federal Minimum Wage |
| 2011 | $7.25 | Federal Minimum Wage |
| 2012 | $7.25 | Federal Minimum Wage |
| 2013 | $7.25 | Federal Minimum Wage |
| 2014 | $7.25 | Federal Minimum Wage |
| 2015 | $7.25 | Federal Minimum Wage |
| 2016 | $7.25 | Federal Minimum Wage |
| 2017 | $7.25 | Federal Minimum Wage |
| 2018 | $7.25 | Federal Minimum Wage |
| 2019 | $7.25 | Federal Minimum Wage |
| 2020 | $7.25 | Federal Minimum Wage |
| 2021 | $7.25 | Federal Minimum Wage |
| 2022 | $7.25 | Federal Minimum Wage |
| 2023 | $7.25 | Federal Minimum Wage |
| 2024 | $7.25 | Federal Minimum Wage |
| 2025 | $7.25 | Federal Minimum Wage |
Its also important to consider the impact of the minimum wage on different segments of the workforce in Texas. For example, a full-time minimum wage worker in Texas would earn $290 per week, resulting in an annual income of $15,080.00. This is a critical piece of data that helps evaluate the financial stability of individuals reliant on this level of income. Moreover, when examining the broader context, it is important to note the disparity between the minimum wage in metropolitan areas, such as the Portland metro area, and the non-urban counties within Texas.
The debate around the minimum wage in Texas remains active. Proponents often highlight its potential benefits for those in low-wage jobs, and the impact it has on poverty reduction. Conversely, opponents often cite potential job losses and economic distortions, with the prevailing federal minimum wage being $7.25. The ongoing discussion requires continuous analysis of how such policies affect various stakeholders, ensuring both economic viability and a fair labor market. The history of the minimum wage in Texas, like its current implementation, highlights the need to remain attentive to changes in both local and national contexts. As the economy evolves and circumstances change, the minimum wage will remain a central issue in the state's labor and economic policy.
The Texas minimum wage, currently in line with the federal standard, reflects more than just a number. It symbolizes the ongoing negotiations and dynamics within the labor market. It also highlights the financial stability challenges faced by workers in low-paying jobs. As such, the minimum wage discussions and any potential legislative changes continue to command significant attention and are likely to remain central to policy discussions in Texas.
