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.
Contents12 sections
At a glance
| Minimum wage now | $7.25 an hour, since January 1, 2008157 |
|---|---|
| Next change | None scheduled. |
| Tipped employees | $4.35 cash wage, tip credit up to $2.9016 |
| Overtime | 1.5 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 by | Iowa 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.
| Rate | Applies to | Per 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 credit | Allowed |
|---|---|
| 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 overtime | No state rule; employers covered by federal law pay 1.5 times the regular rate after 40 hours a week58 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The 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
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.
| State | Per 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.
| Agency | Iowa Department of Inspections, Appeals, and Licensing |
|---|---|
| Phone | (515) 350-7821 |
| The law | Iowa Code 91D.1; Iowa Code 364.3(12); Iowa Code 331.304(12) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
- 1 Iowa Legislature, Iowa Code 2026, Section 91D.1 Minimum wage requirements Checked Oct 9, 2026 · Back to text ↑
- 2 Iowa Legislature, Iowa Code 2026, Section 364.3 Limitations of powers (cities) Checked Oct 9, 2026 · Back to text ↑
- 3
- 4 Iowa Department of Inspections, Appeals, and Licensing, Wage and Child Labor Checked Oct 9, 2026 · Back to text ↑
- 5 U.S. Department of Labor, Wage and Hour Division, State Minimum Wage Laws Checked Oct 9, 2026 · Back to text ↑
- 6
- 7
- 8 U.S. Department of Labor, Wage and Hour Division, Overtime Pay Checked Oct 28, 2026 · Back to text ↑
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