IAFollows the federal floor
Iowa minimum wage 2026
The Iowa minimum wage is $7.25 per hour as of 2008-01-01. The tipped cash wage is $4.35 with a tip credit of $2.90. [IA labor dept.][DOL WHD]
Standard minimum
IA$7.25
Effective 2008-01-01.
Verified 2026-06-24
Tipped cash wage
$4.35
Tip credit ceiling $2.90.
Verified 2026-06-24
vs federal $7.25
matches
State mirrors the FLSA federal floor.
Verified 2009-07-24
Next scheduled step
None
No further increase scheduled in statute.
Verified 2026-06-24
Tip-credit split
Cash $4.35Credit $2.90Combined $7.25
Take-home at the Iowa minimum
Estimated take-home at $7.25 per hour
20 hours/week
$145.00
~$128/wk after tax
$7,540 annual gross
30 hours/week
$217.50
~$193/wk after tax
$11,310 annual gross
40 hours/week
$290.00
~$257/wk after tax
$15,080 annual gross
Estimate uses 2026 federal brackets (single filer), FICA 7.65 percent, and a flat state effective rate. Actual withholding varies by W-4 and credits.
Statute and indexing
Iowa Code section 91D.1 sets the state minimum at $7.25, unchanged since 2008. Initial-employment wage of $6.35 allowed for the first 90 calendar days. Local ordinances pre-empted by HF 295 (2017).
Tool
Take-home calculator
Reference
Federal vs state delta