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Minimum Wage in Iowa

Iowa's minimum wage is $7.25 per hour, and tipped employees must be paid at least $4.35 because the tip credit is capped at 40 percent.

Last checked . General information, not legal advice.

Iowa at a glance

Minimum wage (per hour)
$7.25
Effective since January 1, 2008; the federal rate applies if it is higher.
Tipped cash wage (per hour)
$4.35
Tip credit up to 40 percent of the minimum wage, for workers receiving more than $30 a month in tips.
Next scheduled increase
None scheduled
No further increase is written into the statute.

Sources

Last checked

The rules in Iowa

What is the minimum wage in Iowa in 2026?

Minimum wage (per hour) in Iowa: $7.25. Effective since January 1, 2008; the federal rate applies if it is higher.

What is the minimum cash wage for tipped employees in Iowa?

Tipped cash wage (per hour) in Iowa: $4.35. Tip credit up to 40 percent of the minimum wage, for workers receiving more than $30 a month in tips.

When is the next minimum wage increase in Iowa?

Next scheduled increase in Iowa: None scheduled. No further increase is written into the statute.

Where do the Iowa minimum wage laws come from?

The rules above come from Iowa Code 91D.1. Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Check which rate applies before setting pay. Coverage rules, employer size thresholds, and exemptions for certain jobs or industries differ, and a local ordinance may require more than the state rate. The statute linked on each state page is the starting point.

Where a lower tipped cash wage is allowed, the employer usually must make up the difference whenever tips fall short of the full minimum wage for the pay period. Keeping accurate records of hours worked and tips reported helps show that every pay period met the minimum.

Rates can change on fixed dates, often January 1 or July 1, and some states adjust them each year for inflation. Reviewing pay rates, offer letters, and employment contracts ahead of each scheduled change helps avoid underpayment claims.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.