Iowa’s minimum wage is $7.25 an hour in 2026. State law set that rate as of January 1, 2008, and tells employers to pay it or the federal minimum wage, whichever is higher [1]. No Iowa city or county can require more [2][3].
At a glance
| Worker | Hourly minimum |
|---|---|
| Most employees | $7.25 |
| Employee who hasn't completed 90 calendar days with the employer | $6.35 |
| Tipped restaurant, hotel, motel, inn or cabin employee (more than $30 a month in tips), cash wage | $4.35 |
Tipped workers
Iowa’s tip credit covers employees of a restaurant, hotel, motel, inn or cabin who customarily and regularly get more than $30 a month in tips [1]. For those workers, the employer can count tips toward the minimum wage, up to 40% of it [1]. At $7.25, that’s $2.90, so the employer has to pay at least $4.35 an hour in cash [1].
The employer decides how much of the credit to take. If your actual tips come in below the amount your employer counted, you can file a written appeal with the director of the Iowa Department of Inspections, Appeals, and Licensing (DIAL) [1].
The first 90 days
Iowa doesn’t require the full rate until an employee has completed 90 calendar days of employment with that employer [1]. Until then, the employer can pay as little as $6.35 an hour [1]. The count is calendar days, not days worked [1].
Who isn’t covered
Iowa’s minimum wage law borrows the exemptions in the federal Fair Labor Standards Act [1]. It also doesn’t apply to a business with less than $300,000 a year in gross sales or business done [1], unless it’s one of these, which are covered no matter their size [1]:
- Laundry, dry cleaning and clothing repair businesses.
- Construction businesses.
- Hospitals, nursing and care institutions, and schools from preschool through college, public or private.
- Public agencies.
Independent contractors aren’t employees under the law [1].
Cities and counties can’t go higher
Since March 30, 2017, cities and counties have been barred from adopting or enforcing a local minimum or living wage that goes beyond federal or state law [2][3]. Local wage ordinances adopted before then are void and unenforceable [2][3]. That means the $7.25 rate applies the same way in Des Moines, Iowa City and every other Iowa community.
If you’re not paid what you’re owed
DIAL enforces Iowa wage law, including the minimum wage [4]. To have the state go after unpaid wages for you [4]:
- The work has to have been done in Iowa.
- The wages have to have come due less than one year (365 days) ago.
- The amount owed has to be less than $6,500.
You file a Wage Claim Form, available in English and Spanish, and an investigator contacts you for more details [4]. DIAL works to collect what’s owed, which can include filing a lawsuit on your behalf [4]. Common problems it handles include illegal deductions, unpaid vacation, unreimbursed work expenses and unpaid commissions [4].
What $7.25 adds up to
At $7.25 an hour, 40 hours a week for 52 weeks comes to about $15,080 a year before taxes [1]. At the $6.35 new-hire rate, a full-time week pays about $254 before taxes [1].
Sources
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What is the minimum wage in Iowa in 2026?
$7.25 an hour. Iowa law sets the state rate at $7.25 as of January 1, 2008, and requires employers to pay that or the federal minimum wage, whichever is higher. The federal rate is also $7.25.
What is the tipped minimum wage in Iowa?
At least $4.35 an hour in cash. For restaurant, hotel, motel, inn and cabin workers who regularly get more than $30 a month in tips, an employer can count tips toward up to 40% of the minimum wage, which is $2.90 of the $7.25.
Can a new employee be paid less than minimum wage in Iowa?
Yes, for a short time. Until an employee has completed 90 calendar days with an employer, Iowa lets that employer pay at least $6.35 an hour. After 90 days, the full $7.25 applies.
Can Des Moines or another Iowa city set a higher minimum wage?
No. Since March 30, 2017, Iowa law has barred cities and counties from setting a minimum or living wage above what federal or state law requires, and earlier local ordinances that did so are void.
How do I file a wage claim in Iowa?
File a Wage Claim Form with the Iowa Department of Inspections, Appeals, and Licensing (DIAL). The work must have been done in Iowa, the wages must have come due less than one year ago, and the amount owed must be less than $6,500. You can also sue on your own or through a lawyer.