Iowa Minimum Wage 2026
Last updated: · Source: Iowa Department of Labor
Iowa · Minimum Wage 2026
Effective 2009-07-24
Data last verified: 2026-07-09
Tipped Rate
$4.35/hr
Tip Credit
$2.90/hr
Exempt Salary
$684/wk
Effective Date
2009-07-24
Iowa Wage Calculator
Current Iowa Minimum Wage
The minimum wage in Iowa is $7.25 per hour in 2026, effective 2009-07-24. Iowa follows the federal minimum wage set by the Fair Labor Standards Act (FLSA), which has remained at $7.25/hr since 2009. See the federal minimum wage page for how the FLSA floor applies nationwide.
Under the Fair Labor Standards Act, employers must pay the highest minimum wage that legally applies to a work location, whether set federally, by the state, or by a city or county ordinance.
Iowa Tipped Minimum Wage
In Iowa, tipped employees may be paid a direct cash wage of $4.35/hr. Employers may claim a tip credit of up to $2.90/hr, but the employee's total hourly earnings (direct wages + tips) must equal at least the full minimum wage of $7.25/hr. If tips fall short, the employer must make up the difference.
| Component | Rate | Notes |
|---|---|---|
| Direct cash wage | $4.35/hr | Minimum employer must pay directly |
| Tip credit | $2.90/hr | Maximum credit employer may claim |
| Total required | $7.25/hr | Wages + tips must reach this floor |
Iowa Exempt Employee Salary Threshold (2026)
An "exempt" employee is a salaried worker who, by law, isn't entitled to overtime pay (time-and-a-half) for hours worked beyond 40 in a week. Whether a salaried employee actually qualifies as exempt depends on both their pay and their job duties. Iowa follows the federal FLSA salary threshold. To qualify for the white-collar (executive, administrative, or professional) overtime exemption, salaried employees must earn at least $684/week ($35,568/year) in 2026.
City & County Minimum Wages in Iowa
A 2017 state law (Iowa Code § 331.301(6)) prohibits counties and cities from setting minimum wage rates above the state/federal level, nullifying prior local increases in counties such as Johnson, Linn, and Wapello.
| City / County | 2026 Rate | Notes |
|---|---|---|
| Des Moines | $7.25/hr (state rate) | Follows Iowa state/federal rate; local ordinances are preempted. |
| Cedar Rapids | $7.25/hr (state rate) | Follows Iowa state/federal rate; local ordinances are preempted. |
| Davenport | $7.25/hr (state rate) | Follows Iowa state/federal rate; local ordinances are preempted. |
| Iowa City | $7.25/hr (state rate) | Follows Iowa state/federal rate; a county-recommended higher rate is unenforceable under state preemption law. |
Iowa Minimum Wage History
The following table shows minimum wage rates in Iowa over the past several years.
| Year | Minimum Wage | Effective Date | Notes |
|---|---|---|---|
| 2009 | $7.25/hr | 2009-07-24 |
Frequently Asked Questions
The minimum wage in Iowa is $7.25 per hour in 2026, effective 2009-07-24. Tipped employees may be paid $4.35 per hour provided tips bring total earnings to at least $7.25/hr.
Iowa's minimum wage stays at the federal rate of $7.25/hr in 2026; a symbolic Johnson County recommendation to raise local pay to $13.37/hr remains unenforceable under state preemption law.
In Iowa, tipped employees must be paid at least $4.35 per hour directly. Employers may claim a tip credit of up to $2.90/hr, but total compensation including tips must reach $7.25/hr.
Iowa follows the federal FLSA salary threshold. Salaried exempt employees must earn at least $684/week ($35,568/year) to qualify for the white-collar overtime exemption in 2026.
A 2017 state law (Iowa Code § 331.301(6)) prohibits counties and cities from setting minimum wage rates above the state/federal level, nullifying prior local increases in counties such as Johnson, Linn, and Wapello.