Iowa Minimum Wage in 2026
Iowa’s minimum wage is $7.25 an hour in 2026, the same as the federal minimum. State law has set that rate since January 1, 2008, and employers must pay the federal minimum instead if it ever rises higher (Iowa Code 91D.1).
Key facts
- A full-time worker at $7.25 earns $15,080 a year before taxes.
- Restaurants and hotels may count tips for up to 40% of the wage, so the cash wage can be as low as $4.35.
- Cities and counties have been barred from setting a higher wage since March 30, 2017 (Iowa Code 364.3).
- The wage does not rise with inflation; only a new state law can raise it.
These figures use the same 2,080-hour full-time year as our minimum wage explainer.
Iowa Bars Local Minimum Wages
Iowa cities and counties cannot set a minimum wage above the state’s. State law says they “shall not adopt, enforce, or otherwise administer” an ordinance on “a minimum or living wage rate,” employment leave, hiring, benefits or scheduling that goes beyond state or federal law. Any local wage ordinance passed earlier became “void and unenforceable” on March 30, 2017 (Iowa Code 364.3(12); 331.304(12)).
So a worker in Des Moines, Iowa City or a rural county is owed the same $7.25. Our preemption explainer covers how other states limit what local governments can pass.
Iowa and Neighboring States
Of Iowa’s six neighbors, only Wisconsin also pays $7.25; Illinois, Missouri, Nebraska, South Dakota and Minnesota pay more. Nebraska, South Dakota and Minnesota raise their wages with inflation, so the gap with them grows each year Iowa’s rate stays at $7.25.
| Category | Value |
|---|---|
| Illinois | $15 |
| Missouri | $15 |
| Nebraska | $15 |
| South Dakota | $11.85 |
| Minnesota | $11.41 |
| Iowa | $7.25 |
| Wisconsin | $7.25 |
Source: U.S. Department of Labor, State Minimum Wage Laws (updated July 1, 2026). Rates as of October 14, 2026.
Our minimum wage by state page shows every state’s rate and its next scheduled raise.
Tipped Workers in Iowa
An Iowa restaurant, hotel, motel, inn or cabin may count tips toward up to 40% of the minimum wage, for workers who regularly get more than $30 a month in tips. That makes the lowest cash wage $4.35 an hour, and tips must make up the rest of $7.25. A worker whose tips fall short can file a written appeal with the Department of Inspections, Appeals, and Licensing (Iowa Code 91D.1(1)(c)).
The Iowa New-Hire Wage
Iowa lets an employer pay a new worker $6.35 an hour for the first 90 calendar days on the job, before the full $7.25 applies (Iowa Code 91D.1(1)(d)).
Iowa Wages by Situation
Open the situation closest to yours. This is general information, not legal advice.
Iowa minimum wage, by situation
I am paid less than $7.25 an hour
- Write down your hours and pay for each week.
- Keep your pay stubs and schedules.
- File a wage claim with the Department of Inspections, Appeals, and Licensing.
$7.25 is the floor in Iowa Code 91D.1, and the department takes wage claims.
My tips do not bring me up to the minimum wage
- Track your tips and cash wage for each pay period.
- Ask your employer to make up the difference.
- If they will not, file a written appeal with the department.
Tips can count for no more than 40% of the wage.
My city wants to raise the local wage
- Know that state law voids any local wage above the state rate.
- Contact your state senator and representative instead.
- Ask whether they support raising the state wage.
Since 2017, only the Legislature can raise the wage in Iowa.
Where Things Stand
Iowa minimum wage laws
As of October 3, 2026
- Iowa minimum wage (Iowa Code 91D.1) Law, $7.25 an hour
In effect since January 1, 2008. If the federal minimum rises, Iowa employers must pay the higher federal rate. (source)
- Local minimum wages (Iowa Code 364.3 and 331.304) Law, Barred since 2017
Cities and counties cannot set a higher minimum wage, and local wage ordinances passed earlier became void on March 30, 2017. (source)
- Tip credit (Iowa Code 91D.1) Law, Up to 40% of the wage
Restaurants and hotels may count tips for up to 40% of the minimum wage, a cash wage of $4.35 an hour. (source)
Source: Iowa Code 91D.1, 364.3 and 331.304
Iowa Minimum Wage Questions
What is the minimum wage in Iowa in 2026?
$7.25 an hour, the same as the federal minimum. Iowa’s rate has not changed since January 1, 2008.
Can an Iowa city set a higher minimum wage?
No. State law bars cities and counties from setting a minimum wage above the state’s, and local wage ordinances passed earlier became void on March 30, 2017.
What is the tipped minimum wage in Iowa?
$4.35 an hour in cash for restaurant and hotel workers who regularly get more than $30 a month in tips. Tips can count for no more than 40% of the $7.25 wage.
Can Iowa employers pay new workers less than the minimum wage?
For the first 90 calendar days, Iowa law lets an employer pay $6.35 an hour. After that, the full $7.25 applies.
What You Can Do
- Check your pay against $7.25, or your cash wage plus tips if you are a tipped worker.
- Keep your own record of hours and pay.
- File a wage claim with the Department of Inspections, Appeals, and Licensing if you were underpaid.
- Ask your state legislators where they stand on raising the wage; find them with the Legislature’s Find Your Legislator tool.
- Vote on November 3. All 100 House seats and 25 state Senate seats are on the ballot, along with the governor. See our Iowa governor race guide.