Tax Calculator

Paycheck Tax Calculator

All minimum wage comparisons
Arizona +$7.90/hr · 2026
Arizona flagvsTexas flag

Arizona vs Texas Minimum Wage 2026

In 2026, Arizona wins on the statewide minimum wage: $15.15/hour vs $7.25/hour in Texas — a gap of $7.90/hour. At full-time (40 hrs/week), that is roughly $16,432.00 more gross income per year before taxes. This page compares floors, tip credits, local rates, and scheduled increases; use our hourly and tax calculators for take-home.

By Sammy S. · Founder · AuthorUpdated for 2026

$15.15Arizona
$7.25Texas
$7.90Hourly gap
$16,432.00FT annual gap

Arizona wins · 2026

Arizona flagArizona

Winner

$15.15/hr

$31,512.00/yr FT · effective January 1, 2026

$7.25/hr

$15,080.00/yr FT · effective July 24, 2009

Gap: $7.90/hr · $16,432.00/yr FT ($1,369.33/mo)

Why Arizona wins

  • Arizona's statewide minimum is $7.90/hr higher ($15.15 vs $7.25).
  • At 40 hours/week, that is about $16,432.00 more gross pay per year ($1,369.33/month).
  • Texas still uses the federal $7.25 floor; Arizona sets its own higher rate.

Side-by-side metrics

MetricArizona flag ArizonaTexas flag Texas
Statewide minimum$15.15/hr$7.25/hr
FT annual gross (40×52)$31,512.00$15,080.00
vs federal floorAbove federalUses federal
Tip creditYes ($12.15 cash)Yes ($2.13 cash)
Local floors listed00
Scheduled / indexed raisesNone listedNone listed

Pay by hours/week

Gross pay at each state's statewide minimum (before taxes).

HoursArizona / wkTexas / wkArizona / yrTexas / yr
20 hrs$303.00$145.00$15,756.00$7,540.00
30 hrs$454.50$217.50$23,634.00$11,310.00
40 hrs$606.00$290.00$31,512.00$15,080.00

Rate history 2020–2026

Official January 1 rates from the U.S. Department of Labor for Arizona vs Texas.

YearArizona flagArizonaTexas flagTexasGap
2026$15.15$7.25-$7.90
2025$14.70$7.25-$7.45
2024$14.35$7.25-$7.10
2023$13.85$7.25-$6.60
2022$12.80$7.25-$5.55
2021$12.15$7.25-$4.90
2020$12.00$7.25-$4.75

Source: DOL WHD historical tables (Jan 1 rates).

Pros & caveats

Arizona flagArizona

Pros

  • Higher state floor ($15.15 vs $7.25)
  • Above the federal $7.25 floor

Cons / caveats

  • Tip credit allowed — cash wage can be as low as $12.15/hr if tips cover the gap
  • No automatic CPI schedule listed — raises need new legislation or ballots

Texas flagTexas

Pros

    Cons / caveats

    • Lower state floor than Arizona ($7.25 vs $15.15)
    • Still on the federal $7.25 floor (unchanged since 2009)
    • Tip credit allowed — cash wage can be as low as $2.13/hr if tips cover the gap

    Planning guide

    How to read the Arizona vs Texas minimum wage comparison

    Arizona has the higher statewide minimum in 2026. Use tip credits, city floors, and take-home tools before deciding which corridor fits workers or payroll.

    Statewide floor

    Arizona $15.15/hr vs Texas $7.25/hr

    FT annual gap

    $16,432.00/yr before taxes

    Tip credits

    Arizona: allowed · Texas: allowed

    Local floors

    Arizona: 0 major · Texas: 0 major

    Before you use this Arizona vs Texas wage gap

    Confirm work location

    Pay follows where hours are worked. City ordinances can exceed either statewide floor.

    Separate tipped roles

    Cash wages under a tip credit are not the full minimum until tips make up the difference.

    Check effective dates

    Rates are for 2026. Scheduled increases can change the gap mid-year.

    Model take-home next

    Convert hours with the hourly calculator, then compare state tax take-home for net pay.

    Federal vs Arizona and Texas

    The federal FLSA floor is a nationwide baseline. Workers get the highest of federal, state, or local rates that apply to their hours. This duel ranks statewide floors; local ordinances and tip credits can change the cash wage for specific jobs.

    FAQ

    Arizona is higher at $15.15/hour versus $7.25 in Texas ($7.90/hr gap).

    About $16,432.00 more gross per year at 40 hrs/week ($1,369.33/month), before taxes and overtime.

    Arizona: yes — tipped cash wage around $12.15/hr. Texas: yes — tipped cash wage around $2.13/hr. Tips must still bring workers to the applicable minimum.

    Arizona lists 0 major local floors. Texas lists 0. Employers must pay the highest applicable federal, state, or local rate.

    Arizona went from $12.00/hr (Jan 1 2020) to $15.15/hr (Jan 1 2026) (+$3.15/hr). Texas went from $7.25/hr to $7.25/hr (flat). Figures are official U.S. DOL January 1 rates.

    Yes. Rates reflect our 2026 minimum wage tracker (last reviewed against DOL and state labor sources). Laws change on Jan 1 / Jul 1 often — verify with each state's labor agency before payroll changes.

    Convert hours with our hourly salary calculator, then run the result through the US tax calculator (or each state's calculator) for federal, state, and FICA withholdings. Minimum wage figures here are gross floors, not net pay.

    Not always. Arizona has the higher legal floor, but state income tax, FICA, and cost of living can narrow or erase the net advantage. Model both states at the same hours with the tax tools.

    Employers must pay the highest applicable rate for the hours worked in that jurisdiction. Compare Arizona and Texas state floors here, then check local ordinances on each state page.

    The ladder shows weekly and annual gross at common hour counts using each state's statewide minimum. It helps translate the hourly gap into cash flow before taxes—overtime and tips are not included.

    Use related links below or the minimum wage compare hub picker for any two states.

    Compare take-home too

    Wage floors are only half the story. See state tax take-home comparisons for federal + state + FICA at the same salary.