MinimumWageRates

US minimum wage by state, city and county

Iowa minimum wage 2026

The minimum wage in Iowa is $7.25 an hour in 2026. Iowa Code 91D.1 sets the state minimum at $7.25 or the federal minimum, whichever is higher, so Iowa's $7.25, in effect since January 1, 2008, has matched the federal figure since the federal rate reached $7.25 on July 24, 2009. The state law reaches beyond federal coverage to most businesses with $300,000 or more in annual sales, and it allows a higher tipped cash wage than many states.

Compiled from official sources Last reviewed How we research
Contents12 sections

At a glance

Minimum wage now$7.25 an hour, since January 1, 2008⁠1⁠5⁠7
Next changeNone scheduled.
Tipped employees$4.35 cash wage, tip credit up to $2.90⁠1⁠6
Overtime1.5 times the regular rate after 40 hours a week (federal law only)⁠5⁠8 · details
Full-time pay$290 a week, $15,080 a year at 40 hours a week before taxes · calculate for your hours
Enforced byIowa Department of Inspections, Appeals, and Licensing, (515) 350-7821

What to know about the Iowa minimum wage

Iowa wrote its own minimum wage into Iowa Code 91D.1, with a floor of $7.25 that took effect January 1, 2008, a year and a half before the federal rate reached the same figure. The statute also says that if the federal minimum is ever higher, Iowa's rate rises to match it.⁠1 Neither figure has moved since 2009, so the practical differences between Iowa and federal law lie in coverage and special rates, not the headline number.

Coverage follows the federal definition of employer, but Iowa reaches further in one respect: a business with $300,000 or more in annual gross sales is covered, and laundries, construction firms, hospitals, care institutions, schools and public agencies are covered at any size.⁠1 Restaurant, hotel, motel, inn and cabin workers who earn more than $30 a month in tips may be paid $4.35 an hour in 2026, because the tip credit is capped at 40% of the minimum. An employer outside federal coverage can pay $6.35 in 2026 during an employee's first 90 calendar days; an employer under federal law cannot go below the federal minimum.

Wage claims go to the Wage and Child Labor unit of the Iowa Department of Inspections, Appeals, and Licensing, which investigates unpaid wages, illegal deductions, unreimbursed expenses and pay cut below an agreed rate.⁠4 Local action is ruled out: a 2017 law voided the county minimum wage ordinances then on the books and bars new ones.⁠2

All 2026 rates

In 2026 Iowa's own tipped rule sets a cash wage of $4.35 for restaurant, hotel, motel, inn and cabin employees, and new employees can be paid $6.35 during their first 90 calendar days, but only by employers outside federal coverage.

Iowa minimum wage rates in effect on October 28, 2026
RateApplies toPer hour
State minimum Federally covered employers, and other businesses with $300,000 or more in annual sales or in specific industries $7.25⁠1⁠5⁠7
New employees, first 90 calendar days The full state rate need not be paid until the employee completes 90 calendar days. Employers also covered by the federal law must still pay the federal minimum unless a federal exception applies. $6.35⁠1

Tipped employees

Tip creditAllowed
Minimum cash wage$4.35 an hour⁠1⁠6
Maximum tip credit$2.90 an hour

Restaurant, hotel, motel, inn and cabin employees who usually get more than $30 a month in tips may be credited with tips up to 40% of the minimum wage, $2.90 in 2026, leaving a cash wage of at least $4.35. An employee whose actual tips are below the credit taken can appeal to the Iowa Department of Inspections, Appeals, and Licensing.

An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.

Overtime and salaried staff

Weekly overtimeNo state rule; employers covered by federal law pay 1.5 times the regular rate after 40 hours a week⁠5⁠8
Daily overtimeNone in state law
Exempt salaryThe federal level, $684 a week ($35,568 a year)

Iowa has no general state overtime law. Employers covered by the federal Fair Labor Standards Act must pay time and a half after 40 hours in a workweek.

Overtime at the minimum wage of $7.25 is $10.875 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.

How the rate changes

There is no inflation index. The rate has been fixed at $7.25 since January 1, 2008, and rises only if the federal minimum goes above it.

Indexed to inflation: no. Not indexed; equals the federal rate when set below it.⁠5

Rate history

Every change to the Iowa minimum wage we list
EffectiveStatusPer hour
January 1, 2008 In effect now $7.25⁠1⁠5⁠7

Who is covered

The state rate applies to employers as defined by the federal Fair Labor Standards Act, with the same federal exemptions. Businesses with less than $300,000 in annual gross sales are exempt unless they are in laundry or dry cleaning, construction, hospitals or care institutions, schools, or public agencies, which are covered at any size.

  • A 2017 law voided local minimum wage ordinances adopted by counties before March 30, 2017.
  • Unpaid wage claims are handled under Iowa Code chapter 91A.

Cities and counties

Cities and counties may not adopt or enforce minimum or living wage rules above the state or federal minimum (Iowa Code 364.3(12) for cities, 331.304(12) for counties). Ordinances adopted before March 30, 2017 became void on that date.

Neighboring states

If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.

Minimum wage in states that border Iowa
StatePer hour now
Illinois$15.00
Missouri$15.00
Nebraska$15.00
South Dakota$11.85
Minnesota$11.41
Wisconsin$7.25

Compare every state on the ranked list and map.

Get help or file a claim

If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.

AgencyIowa Department of Inspections, Appeals, and Licensing
Phone(515) 350-7821
The lawIowa Code 91D.1; Iowa Code 364.3(12); Iowa Code 331.304(12)
FederalU.S. Department of Labor, Wage and Hour Division, 1-866-487-9243

Sources

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