Iowa minimum wage
Minimum wage in Iowa, in effect since January 1, 2008
$7.25 an hour
That is $0.00 above the federal minimum of $7.25. Employers in Iowa pay the higher state rate.
Next increase: none announced as of October 9, 2026.
Tipped employees
Employers in Iowa can pay tipped employees a cash wage of $4.35 an hour, taking a tip credit of up to $2.90, as long as tips bring the employee to at least $7.25 for every hour worked. If they don't, the employer makes up the difference. An employee counts as tipped if they get $30 per month or more in tips.
Exceptions and details
- Employers may pay an 'initial employment wage' of $6.35 an hour for an employee's first 90 days.
- Generally applies to employers grossing at least $300,000 a year in sales or business; some employers must comply regardless of sales.
Common questions
- What is the minimum wage in Iowa?
- $7.25 an hour, in effect since January 1, 2008.
- What is the tipped minimum wage in Iowa?
- $4.35 an hour in cash wages, provided tips bring the employee up to $7.25 an hour.
- When does the Iowa minimum wage go up?
- No increase had been announced as of October 9, 2026.
Running payroll in Iowa?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- Iowa Department of Inspections, Appeals, and Licensing (Wage and Child Labor) · data as of January 1, 2008 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.