Texas tips tax calculator and tipped minimum wage
Texas has no income tax — its constitution says the legislature “may not impose a tax on the net incomes of individuals” — and its Minimum Wage Act defers to federal law, so tipped pay starts at $2.13 an hour.
Labor Code Chapter 62
The Texas Minimum Wage Act adopts the federal rate and excludes employment covered by the FLSA, so for almost every Texas restaurant the rules are federal: $2.13 in cash, up to $5.12 of tips counted, and a weekly top-up to $7.25 when tips fall short. Texas counts a worker as tipped above $20 a month in tips, lower than the federal $30.
Texas figures
| Cash wage / minimum | $2.13 / $7.25 |
|---|---|
| In force | July 1, 2026 |
| Next change | none scheduled |
| Tipped threshold | More than $20 a month in tips |
| Tips on the 2025 return | no state income tax on wages. Texas Constitution art. 8, § 24-a: “The legislature may not impose a tax on the net incomes of individuals.” Source: Texas Legislature |
| Tips on the 2026 return | no state income tax on wages. Unchanged. Source: Texas Legislature |
Getting unpaid wages back
The Texas Workforce Commission handles wage claims under the Texas Payday Law. A claim must be filed within 180 days of the date the wages were supposed to be paid; TWC suggests raising the problem with the employer first, and cannot investigate an employer in bankruptcy.
A Houston server
$21,000 of tips give a $21,000 deduction and $2,330 of federal savings — the whole benefit in Texas. In a 30-hour week with $100 of tips, cash wages of $64 leave the worker $54 short of $218; that make-up is a Payday Law claim if unpaid.
Check a Texas workweek
Where these figures come from
- Texas Comptroller of Public Accounts · Texas Workforce Commission
- Texas Constitution, Article 8, Section 24-a (2026)
- Minimum Wages for Tipped Employees (table by state) (2026-07-01)
Federal rules: how the deduction works. Nearby: New Mexico, Oklahoma, Arkansas, Louisiana.
Figures verified against primary sources on