Current Minimum Wage
Iowa minimum wage$7.25since January 1, 2008

State minimum wage

Iowa minimum wage

$7.25 an hour as of September 2, 2026. Tipped cash wage $4.35.

  • The Iowa minimum wage is $7.25 an hour, set by state law effective .
  • No increase is currently scheduled in Iowa.
  • Tipped employees must be paid at least $4.35 in cash, with a tip credit of up to $2.90.
  • A youth or training wage of $6.35 applies: Initial employment wage: an employee who has not completed 90 calendar days with the employer may be paid at least $6.35/hr (not age-based) (Iowa Code 91D.1(1)(d))..
  • At $7.25 an hour, full-time work (2,080 hours) pays $15,080 a year before taxes.
  • Iowa law bars cities and counties from setting their own minimum wage.

Tipped cash wage

$4.35
Tip credit up to $2.90

Youth / training

$6.35
Initial employment wage: an employee who has not completed 90 calendar days with the employer may be paid at least $6.35/hr (not age-based) (Iowa Code 91D.1(1)(d)).

Next change

None scheduled
Set by statute; no indexing

Local rates

Preempted
2017 House File 295 added Iowa Code 331.304(12) and 364.3(12): counties and cities 'shall not adopt, enforce, or otherwise administer an ordinance... relating to a minimum or living wage rate'...

Coverage, exemptions, and history

Who is covered. Employers (as defined in the FLSA) generally grossing $300,000+/yr, plus public agencies, construction, laundries, hospitals/schools regardless of volume....

Tipped employees. For restaurant/hotel/motel/inn/cabin employees regularly receiving more than $30/month in tips, the employer may credit tips up to 40% of the minimum wage (Iowa Code 91D.1(1)(c)); DIAL: 'the...

Recent history. $6.20 as of 2007-04-01, $7.25 as of 2008-01-01 (Iowa moved ahead of the federal schedule); federal reached $7.25 in July 2009.

The DIAL wages page does not mention the $6.35 initial-employment wage; it is in the statute.

Statute. Iowa Code chapter 91D, section 91D.1 (Iowa Code 2026 edition).

Common questions

What is the minimum wage in Iowa?

$7.25 an hour as of September 2, 2026, under state law effective January 1, 2008.

When does the Iowa minimum wage go up next?

No increase is scheduled.

What is the tipped minimum wage in Iowa?

$4.35 in cash plus tips; the employer must make up any shortfall to $7.25.

Do any cities in Iowa have a higher minimum wage?

No. State law preempts local minimum wage ordinances.

Sources

  1. https://dial.iowa.gov/hearings/wage-and-child-labor/wages official
  2. https://www.legis.iowa.gov/docs/code/91D.1.pdf official
  3. https://www.dol.gov/agencies/whd/minimum-wage/state official
  4. https://www.dol.gov/agencies/whd/state/minimum-wage/tipped official
  5. https://www.legis.iowa.gov/docs/publications/LGE/87/HF295.pdf official

Checked 2026-09-02 against Iowa Division of Labor (Department of Inspections, Appeals, and Licensing); researcher confidence 0.93.