Current Minimum Wage in Iowa
The minimum wage in Iowa is $7.25 per hour as of 2026. This is $0 above the federal minimum wage of $7.25/hr.
Wage Breakdown
| Pay Period | Gross Pay | Hours |
|---|---|---|
| Hourly | $7.25 | 1 |
| Daily (8 hours) | $58 | 8 |
| Weekly | $290 | 40 |
| Biweekly | $580 | 80 |
| Monthly | $1,257 | ~173 |
| Annual | $15,080 | 2,080 |
Tipped Employee Wage
Tipped workers in Iowa can be paid a cash wage of $4.35/hr, with the expectation that tips make up the difference to the full $7.25/hr minimum. If tips don't bring total compensation to the minimum wage, the employer must make up the difference.
Scheduled Increases
No scheduled increases. Matches federal rate.
Living Wage vs. Minimum Wage
Federal Poverty Line (single)
$15,060/year
Minimum wage is $20 above poverty line
Estimated Living Wage (IA)
~$15.16/hr
Based on cost of living index (89.2)
Cost of Living Context
Iowa's cost of living index is 89.2 (national average = 100). This means living in Iowa is 10.8% cheaper than the national average. The median hourly wage in Iowa is $20.03/hr, which is 176% above the minimum wage.
Key Facts
Matches federal rate. State law preempts cities from setting higher minimums.
How This Compares
| Metric | IA | Federal | Highest (WA) |
|---|---|---|---|
| Minimum Wage | $7.25 | $7.25 | $16.66 |
| Tipped Wage | $4.35 | $2.13 | $16.66 |
| Annual (FT) | $15,080 | $15,080 | $34,653 |
Useful Resources
Iowa Average Salary
Median income and top employers in IA
Iowa Tax Rates
Income, sales & property tax in IA
Salary Calculator
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Paycheck Calculator
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