Iowa Minimum Wage 2026
$7.25
per hour (federal minimum) since January 1, 2008
Iowa's minimum wage is $7.25 an hour, the same as the federal minimum wage. No increase to the Iowa minimum wage is scheduled for 2027.
Reviewed by Slava Akulov, CEO & Co-Founder at Jupid · Last updated: October 2026
Up to 40. Hours over 40 in a workweek go in the overtime field.
Paid at 1.5 times the rate ($10.88 an hour).
Weekly
$290
Monthly (average)
$1,257
Annual
$15,080
Gross pay before taxes. For take-home pay after federal, state and payroll taxes, use the Iowa hourly paycheck calculator.
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Iowa Minimum Wage at a Glance
2026 minimum wage
$7.25
Since January 1, 2008
Tipped cash wage
$4.35
Tip credit up to $2.90
Next change
None scheduled
No law scheduled
Overtime
Weekly
1.5 times the regular rate
Small retail and service businesses grossing under $300,000 a year are not required to pay the state minimum wage.
Local Minimum Wages in Iowa
State law voids city and county minimum wage ordinances, including the county ordinances passed in 2015 and 2016.
Tipped Minimum Wage in Iowa
Employers in Iowa can pay tipped employees a cash wage of $4.35 an hour and count up to $2.90 an hour of tips toward the $7.25 minimum. If tips fall short, the employer makes up the difference. The tip credit can be up to 40% of the minimum wage, for employees who customarily and regularly receive more than $30 a month in tips.
Cash wage
$4.35
Maximum tip credit
$2.90
Cash wage plus tips must reach
$7.25
Other Iowa Minimum Wage Rates
- First 90 days of employment: $6.35. Applies only where the federal $7.25 does not
Overtime Rules in Iowa
Iowa has no state overtime law; federal overtime after 40 hours in a workweek applies. Overtime is paid at 1.5 times the regular rate, so at the $7.25 minimum an overtime hour pays at least $10.88. To work out overtime on any hourly rate, use the overtime pay calculator.
Iowa Minimum Wage History
| Effective | Hourly rate |
|---|---|
| January 1, 2008 (current) | $7.25 |
| April 1, 2007 | $6.20 |
Iowa Minimum Wage in 2027
No increase to the Iowa minimum wage is scheduled for 2027. Iowa law has set $7.25 since January 1, 2008.
Iowa Minimum Wage FAQ
More Pay Tools for Iowa
Iowa Hourly Paycheck Calculator
Take-home pay for hourly work, with overtime and taxes.
Iowa Paycheck Calculator
Salary take-home pay after federal and state taxes.
Overtime Pay Calculator
Time-and-a-half and double-time pay for any rate.
Employee Cost Calculator
What an hourly hire costs with payroll taxes added.
Minimum Wage in Other States
State minimum wages range from the federal $7.25 to $18.40 an hour in 2026. Pick a state to see its rate, tipped wage and 2027 change.
Official References
- Iowa Department of Inspections, Appeals, and Licensing, Your Rights Under the Iowa Minimum Wage Law poster
- Iowa Code chapter 91D
- Iowa Code 364.3
- Iowa Code 331.304
- U.S. Department of Labor: State Minimum Wage Laws
- U.S. Department of Labor: Minimum Wages for Tipped Employees
Rates verified against the sources above on October 30, 2026. The calculator shows gross pay only. Industry rates, exemptions and local ordinances can change during the year; check the agency page before setting pay. This page is general information, not legal advice.
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