The Iowa minimum wage for 2026 and 2027, the tipped and youth rates, and how the rate is set each year. Every figure links to its official source below.
| Rate | 2026 (now) | 2027 |
|---|---|---|
| Standard minimum wage | $7.25 | $7.25 |
| Tipped employees (lowest employer wage) For employees who customarily and regularly receive more than $30 a month in tips; tips must bring the total up to the full minimum wage. | $4.35 | $4.35 |
| New hires, first 90 calendar days (initial employment wage) | $6.35 | $6.35 |
Current rate in effect since January 1, 2008; next statewide change: the rate stays at $7.25: Iowa Code § 91D.1 sets no later step.
An employer must pay the state hourly wage or the current federal minimum wage, whichever is greater (Iowa Code § 91D.1).
For employees of a restaurant, hotel, motel, inn or cabin who customarily and regularly receive more than $30 a month in tips, the employer may count tips up to 40% of the minimum wage, so the employer's share is at least $4.35 an hour. If wages plus tips do not average the minimum in a workweek, the employer pays the difference.
An employer is not required to pay the full state wage until an employee has completed 90 calendar days of employment, and may pay an initial employment wage of $6.35 an hour until then. This applies to every new hire, not only young workers.
Most small retail and service establishments grossing less than $300,000 a year are not required to pay the state minimum wage. Laundry, cleaning and clothing repair businesses, construction, hospitals, schools and public agencies are covered whatever their sales.
Iowa cities cannot set a higher wage: a city may not adopt, enforce or administer an ordinance or resolution providing terms of employment that exceed or conflict with state or federal law on a minimum or living wage rate (Iowa Code § 364.3(12)).
Iowa does not index its rate. The Code fixes the state hourly wage at $7.25 as of January 1, 2008, and requires employers to pay that or the current federal minimum wage, whichever is greater, so a higher federal rate would raise the Iowa minimum.
What does $7.25 an hour leave you after tax in Iowa? Run it through the paycheck calculator.
Open the paycheck calculator →Every state side by side: minimum wage by state 2026 and minimum wage by state 2027.
$16.90 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$13.73 now; tipped, youth and local rates.
$15.15 now; tipped, youth and local rates.
$15.16 now; tipped, youth and local rates.
$17.13 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$17.00 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$16.94 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$15.92 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$7.25 now; tipped, youth and local rates.
$11.00 now; tipped, youth and local rates.
$12.77 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
$15.00 now; tipped, youth and local rates.
Every 2026 state minimum wage vs the $7.25 federal floor, DOL-sourced, all 50 states + DC + territories
Every 2027 state minimum wage vs the $7.25 federal floor, official-source verified, all 50 states + DC + territories
Federal, state, FICA withholding, net take-home, W-4 alignment
Convert annual salary to hourly wage, part-time calculations