IAIowa minimum wage 2026
The lowest your employer can pay you in Iowa is $7.25 an hour, since July 24, 2009. If you get tips, you must still get at least $4.35 an hour in cash, and tips must bring you to $7.25.
Iowa minimum wage, all the numbers
| What | Amount | Where we checked |
|---|---|---|
| Per hour right now | $7.25 | read the rulechecked October 29, 2026 |
| Next change | None planned | |
| Cash pay for tipped workers | $4.35 | read the rulechecked October 29, 2026 |
| Tips an employer may count toward the minimum | up to $2.90 an hour | |
| Overtime rate at minimum wage (1.5 times) | $10.88 | Iowa overtime rules |
| A 40-hour week | $290.00 | |
| A month, full time | $1,256.67 | |
| A year, full time (2,080 hours) | $15,080.00 | |
| Federal minimum (the national floor) | $7.25 | U.S. Department of Labor |
Statewide federal rate. Cities may not set their own. Tip credit is limited to 40% of the minimum wage.
What these words mean
- Minimum wage
- The lowest hourly pay an employer may give you. Your state's rate applies if it is higher than the federal $7.25.
- Tip credit
- In some states an employer can pay tipped workers a lower cash wage and count your tips toward the minimum wage. If tips fall short, the employer must make up the difference.
- Overtime
- Extra pay for extra hours. Federal law says 1.5 times your normal rate for every hour over 40 in a work week. Some states add rules for long days.
- Wage complaint
- A free claim you file with your state labor office or the U.S. Department of Labor when you are not paid what the law requires.
Questions
What is the minimum wage in Iowa right now?
$7.25 an hour, since July 24, 2009. Statewide federal rate. Cities may not set their own.
Is the Iowa minimum wage going up in 2027?
No increase is planned. It stays at $7.25 unless lawmakers or voters change it.
I get tips. What must my employer pay me in cash?
At least $4.35 an hour in cash. Your employer may count up to $2.90 of your tips toward the minimum wage, but if tips fall short of $7.25 an hour in total, the employer must make up the gap. Tip credit is limited to 40% of the minimum wage.
What is my overtime rate if I earn minimum wage in Iowa?
$10.88 an hour (1.5 times the minimum wage) for hours over 40 in a week. See Iowa overtime rules.
How much is minimum wage per year in Iowa?
$15,080.00 before tax for 40 hours a week all year (2,080 hours). That is $290.00 a week and $1,256.67 a month.
My employer pays less than $7.25. What can I do?
Check whether you are covered: a few small employers and some jobs have different rules (see the notes above). If you are covered, you can file a free wage complaint with the Iowa labor office or the U.S. Department of Labor, and it is illegal to punish you for it.
More Iowa pay rules
Verified October 29, 2026 against the U.S. Department of Labor state table and Iowa sources. Next scheduled check: January 1, 2027. Change log.