California vs Texas minimum wage 2026
At 40 hours per week, the gross-pay gap between California and Texas is $20,072.00 per year at each state's standard minimum.[DOL WHD]
| Measure | CACalifornia | TXTexas |
|---|---|---|
| Standard minimum (2026) | $16.90 | $7.25 |
| In effect | effective 2026-01-01 | in effect as at 2026-07-01 per US DOL |
| Tipped cash wage | $16.90 | $2.13 |
| Tip credit ceiling | Not permitted | $5.12 |
| Indexed to inflation | Yes | No |
| Next scheduled step | $17.40 on 2027-01-01 | None |
| vs federal $7.25 | +$9.65 | +$0.00 |
| Gross at 40 hours/week | $676.00 / week | $290.00 / week |
| Gross at 40 hours/year | $35,152.00 | $15,080.00 |
| Net after federal tax and FICA (annual, before state tax) | $30,424.63 | $13,926.38 |
Why the gap exists
California: An employer may not use an employee's tips as a credit toward its obligation to pay the minimum wage per hour.
And on the other side
No scheduled increase is recorded. This row was taken from the DOL tables only and the state's own site was not checked in this pass, so a scheduled increase may exist and simply not be captured here.