The minimum wage in Austin is $7.25/hour in 2026. See how it compares to the MIT living wage of $21.70/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Austin.
The minimum wage in Austin is the federal rate of $7.25/hour. Texas does not allow cities to raise the minimum wage, so the federal $7.25/hour applies to most private employers in Austin even though local wages run well above it. The bigger question for most workers is how that compares to what it actually costs to live in Austin. With average 1-bedroom rent near $1,500/month and a cost-of-living index of 119 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Austin, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $21.70 | $45,136 |
| MIT living wage (family of four, one earner) | $43.10 | $89,648 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $18,000 |
Living wage figures: MIT Living Wage Calculator for Travis County. Minimum wage reflects the rate applicable to most private employers in Austin.
Austin is the Texas state capital and a fast-growing technology center nicknamed Silicon Hills, home to Tesla, Oracle, and a wave of relocated tech firms, the University of Texas, and a live-music and startup culture that has driven housing costs sharply higher.
| Local Metric | Austin (2026 estimate) |
|---|---|
| Metro population | 975,000 |
| County / jurisdiction | Travis County |
| Cost of living index (US avg = 100) | 119 |
| MIT living wage, single adult | $21.70/hour |
| MIT living wage, one earner supporting a family of four | $43.10/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,500/month |
| Average rent, 2-bedroom | $1,900/month |
| Median home price | $550,000 |
| Median household income | $91,000/year |
| Combined sales tax rate | 8.25% |
| Effective property tax rate | 1.8% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Austin is the federal rate of $7.25/hour. Texas does not allow cities to raise the minimum wage, so the federal $7.25/hour applies to most private employers in Austin even though local wages run well above it. A full-time worker (40 hours/week, 52 weeks) earns about $15,080 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Travis County needs about $21.70/hour (roughly $45,136/year) to cover basic costs. That is $14.45/hour above the applicable minimum wage, and a one-earner family of four needs closer to $43.10/hour.
At $7.25/hour, full-time work (2,080 hours/year) produces about $15,080 gross. Part-time at 30 hours/week is roughly $11,310/year. Average 1-bedroom rent in Austin is about $1,500/month, or $18,000/year.
Texas does not allow cities to raise the minimum wage, so the federal $7.25/hour applies to most private employers in Austin even though local wages run well above it.
The federal minimum wage is $7.25/hour and has not changed since 2009. Texas does not set a higher state minimum, and it prevents cities from raising it, so $7.25/hour is the floor in Austin.