Iowa minimum wage: $7.25 an hour (the federal rate)
Checked November 8, 2026Source: Iowa Department of Inspections, Appeals, and Licensing (Labor)
Short answer
Iowa has no state minimum wage above the federal one, so most employers there must pay at least $7.25 an hour under the federal Fair Labor Standards Act (FLSA).
Employers may pay tipped employees $4.35 an hour in cash, as long as tips bring them up to at least $7.25.
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- Minimum wage today
- $7.25
- Tipped employees, cash wage
- $4.35
- Full-time year at today’s rate (2,080 hours)
- $15,080
We found no city or county in Iowa with its own higher minimum wage.
Iowa minimum wage by date
| Effective | Minimum wage | Tipped cash wage | Note |
|---|---|---|---|
| January 1, 2008Current | $7.25 | $4.35 | Tip credit up to 40% for restaurant, hotel, motel, inn and cabin workers. Businesses with under $300,000 in annual sales are exempt from the state law, except laundries, dry cleaners and clothing repair shops, construction businesses, hospitals and residential care institutions, schools, preschools and colleges, and public agencies, which are covered at any sales level (the FLSA may still apply).source |
| April 1, 2007 | $6.20 | $3.72 | Tipped figure is 60% of the minimum (40% tip-credit cap in Iowa Code 91D.1).source |
Other Iowa rates
First 90 days of employment
An employer isn’t required to pay the state rate until an employee has completed 90 calendar days of employment with it. Until then the wage must be at least this amount (Iowa Code 91D.1(1)(d)).
Today: $6.35
Other Iowa pay rules
- Paydays
- At least monthly, twice a month or every two weeks, on regular paydays set in advance, no more than 12 days (not counting Sundays and holidays) after the pay period ends.
- Overtime
- Follows the federal Fair Labor Standards Act (FLSA) rule: time and a half after 40 hours in a workweek. We found no separate state overtime rule.
- Final paycheck
- Fired: By the next regular payday. Quit: By the next regular payday.
From the Iowa Department of Inspections, Appeals, and Licensing and the U.S. Department of Labor’s state tables. All Iowa employer rules.
Minimum wage in states next to Iowa
If you hire across a state line, the worker’s state sets the rate.
Questions employers ask
What is the minimum wage in Iowa in 2026?
Iowa has no state minimum wage above the federal one, so most employers there must pay at least $7.25 an hour under the federal Fair Labor Standards Act (FLSA).
What is the tipped minimum wage in Iowa?
Employers may pay tipped employees $4.35 an hour in cash, as long as tips bring them up to at least $7.25.
When does the Iowa minimum wage go up next?
No increase is scheduled under current Iowa law. Any change would need new legislation or a ballot measure.
Do cities in Iowa have a higher minimum wage?
We found no city or county minimum wage in Iowa.
Does Iowa require overtime pay?
Follows the federal Fair Labor Standards Act (FLSA) rule: time and a half after 40 hours in a workweek. We found no separate state overtime rule.
Compare every state’s minimum wage · Everything employers in Iowa must do
Sources
- Iowa Department of Inspections, Appeals, and Licensing (Labor)
- Iowa Code 2026, section 91D.1, Minimum wage requirements, Iowa Legislature (read Nov 8, 2026)
- Minimum Wages for Tipped Employees (November 5, 2026 table), U.S. Department of Labor, Wage and Hour Division (read Nov 8, 2026)