Iowa Minimum Wage 2026
The minimum wage in Iowa is $7.25 per hour in 2026, effective July 24, 2009. Tipped employees can be paid a cash wage of $4.35 per hour, as long as tips bring them to the full minimum.
What is the minimum wage in Iowa in 2026?
The Iowa minimum wage is $7.25 per hour in 2026. Iowa actually got to $7.25 early, raising its state rate in 2008, a full year before the federal increase caught up in July 2009. It has not moved since.
What was once a state that led the federal government on wages now trails its neighbors badly. Nebraska's minimum wage has climbed to $15.00, more than double Iowa's rate, and in the Council Bluffs and Omaha metro that gap directly shapes where hourly workers apply and what Iowa employers must offer to compete.
Tipped minimum wage in Iowa
Iowa sets its tipped minimum wage at $4.35 per hour, exactly 60 percent of the full minimum and roughly twice the federal $2.13 cash wage. The maximum tip credit is $2.90 per hour, and tips must bring every tipped employee to at least $7.25 per hour.
The higher cash base reduces but does not eliminate shortfall risk. Employers still need to verify each pay period that tips closed the remaining $2.90 gap, and pay the difference when they did not. Iowa Workforce Development handles wage complaints at the state level.
Iowa minimum wage history: 2020 to 2026
| Year | Minimum wage | Tipped wage |
|---|---|---|
| 2020 | $7.25 | $4.35 |
| 2021 | $7.25 | $4.35 |
| 2022 | $7.25 | $4.35 |
| 2023 | $7.25 | $4.35 |
| 2024 | $7.25 | $4.35 |
| 2025 | $7.25 | $4.35 |
| 2026 | $7.25 | $4.35 |
Upcoming minimum wage increases in Iowa
No increases are scheduled. Movement would require the Iowa Legislature to amend the state wage statute or Congress to raise the federal floor, and both have stayed put for years.
Iowa briefly had local momentum: Johnson, Linn, and Wapello counties adopted their own higher minimums in 2015 and 2016. A 2017 state preemption law rolled those back and barred future local rates, returning the entire state to $7.25. Wage bills still get introduced in Des Moines each session but have not advanced out of committee.
Minimum wage by city in Iowa
Since the 2017 preemption law, no Iowa city or county may set its own minimum wage. That law did more than block future ordinances; it nullified county minimums already in effect in Johnson County (home to Iowa City), Linn County (Cedar Rapids), and Wapello County, in some cases cutting legal minimums that had reached above $10.00.
Today the $7.25 floor applies uniformly, but employers along the western border feel Nebraska's $15.00 rate every day, and the college-town labor markets in Iowa City and Ames clear well above minimum for most roles.
State rate; the metro's insurance and finance employers pay far beyond it
Linn County's higher local minimum was rolled back by the 2017 preemption law
Johnson County had raised its minimum above $10.00 before the state voided it
State rate; Quad Cities employers hire across the Illinois line, where the floor is $15.00
What Iowa employers need to know
Coverage and the initial employment wage
Iowa's minimum wage law tracks FLSA coverage. Iowa also allows an initial employment wage of $6.35 per hour for a new employee's first 90 calendar days with an employer, after which the full $7.25 is required.
Tipped employees
Pay tipped staff at least $4.35 per hour in cash wages, Iowa's own tipped rate, and confirm that tips cover the remaining $2.90 to reach $7.25. Iowa defines tipped employees as those customarily receiving more than $30 per month in tips.
Overtime
Iowa has no state overtime law, so the FLSA standard of 1.5x pay after 40 hours per workweek governs. No daily overtime applies.
Posting and records
Post the required minimum wage notices and keep payroll records for three years. Wage claims are filed with Iowa Workforce Development's labor division or the federal DOL.
How other states compare
See how Iowa's $7.25 rate stacks up against other state minimum wages in 2026, or browse the full minimum wage index for all 50 states.
Last verified:
Sources: the US Department of Labor's state minimum wage table and official announcements from the Iowa labor department. Minimum wage laws change frequently; confirm current rates with those sources or legal counsel before setting pay.
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