The minimum wage in Houston is $7.25/hour in 2026. See how it compares to the MIT living wage of $19.60/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 Houston.
The minimum wage in Houston is the federal rate of $7.25/hour. Texas law prevents cities from setting their own minimum wage, so the federal minimum of $7.25/hour applies in Houston for most private employers. The bigger question for most workers is how that compares to what it actually costs to live in Houston. With average 1-bedroom rent near $1,350/month and a cost-of-living index of 96 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Houston, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $19.60 | $40,768 |
| MIT living wage (family of four, one earner) | $40.20 | $83,616 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $16,200 |
Living wage figures: MIT Living Wage Calculator for Harris County. Minimum wage reflects the rate applicable to most private employers in Houston.
Houston is the largest city in Texas and the energy capital of the world, with a diverse economy spanning oil and gas, the Texas Medical Center (the largest medical complex on earth), the Port of Houston, aerospace at NASA's Johnson Space Center, and manufacturing.
| Local Metric | Houston (2026 estimate) |
|---|---|
| Metro population | 2.3 million |
| County / jurisdiction | Harris County |
| Cost of living index (US avg = 100) | 96 |
| MIT living wage, single adult | $19.60/hour |
| MIT living wage, one earner supporting a family of four | $40.20/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,350/month |
| Average rent, 2-bedroom | $1,650/month |
| Median home price | $340,000 |
| Median household income | $60,000/year |
| Combined sales tax rate | 8.25% |
| Effective property tax rate | 2.09% 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 Houston is the federal rate of $7.25/hour. Texas law prevents cities from setting their own minimum wage, so the federal minimum of $7.25/hour applies in Houston for most private employers. 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 Harris County needs about $19.60/hour (roughly $40,768/year) to cover basic costs. That is $12.35/hour above the applicable minimum wage, and a one-earner family of four needs closer to $40.20/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 Houston is about $1,350/month, or $16,200/year.
Texas law prevents cities from setting their own minimum wage, so the federal minimum of $7.25/hour applies in Houston for most private employers.
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 Houston.