The Iowa state minimum wage situation is identical to many others in the US, 21 in fact. It sits at $7.25 per hour in 2021 – pegged at the same rate as the Federal minimum wage.

Iowa’s state minimum wage has remained the same since 2009. Over 10 long years with no increase.

Just like other states that have aligned their minimum wage with the Federal minimum wage, there are some exceptions:

  • Business owners and employers in the state are able to pay a training wage of $4.25 per hour to new employees under the age of 20 for the first 90 days of employment.
  • Some businesses can pay employees that are also full-time students 80% of the current minimum wage for up to 20 hours of work per week.
  • Employees working in the hospitality industry (waiter/waitress, bartender, etc.) that are eligible and likely to receive tips from customers can be paid a minimum of $2.90 per hour, however, the tips they receive must account for the $4.35 per hour that represents the shortfall of the minimum Federal wage of $7.25 per hour.
  • Federal contractor employees working in the state of Iowa must be paid a minimum wage of $10.80 per hour.





Did the Iowa Minimum Wage Go Up?

The graphic below highlights the Iowa minimum wage over the past several years. The minimum wage did not go up and remains at $7.25 per hour in 2021.

Minimum wage in Iowa

Iowa Minimum Wage 2021

2021 has seen no change to the Iowa state minimum wage, and there seems to be no indication of an increase coming in the distant future either. For more information on the other labor laws in Iowa, please visit the Iowa Division of Labor website.

Are you interested in the history of the minimum wage in Iowa?

We have created a bar graph showing you the minimum wage each year and also a convenient PDF you can download. It is located at the bottom of this page.

The way in which the minimum wage increase is usually decided per state is through the consumer price index. But there are still 21 states with minimum wages all set at $7.25 per hour.

Are you interested in starting a company in Iowa?

If you would like to register a new business in Iowa, check out our ultimate guide on How to Register a Business in Iowa.

Many believe the federal minimum wage is due to increase throughout the new decade as it has remained the same for over 10 years. If this were to happen, many small businesses would have to adapt and adjust to a potential increase in their employees’ wages.

To find out more information regarding the Minimum Wage in US States (all 50), check out our page that has a table in alphabetical order of all 50 states, including historical state minimum wage rates from previous years.

There are many interesting facts about Iowa that you probably haven’t heard of. Feel free to check out a comprehensive list of them that also includes some very important economic facts if you are looking to start your own business or franchise or get a job in the state.

Iowa Minimum Wage History

The table below provides the history of Iowa’s minimum wage over the years since 2008. You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents.

StateWageYear$ Wage Increase% Increase
Iowa Minimum Wage 2021$7.252021$00%
Iowa Minimum Wage 2020$7.252020$00%
Iowa Minimum Wage 2019$7.252019$00%
Iowa Minimum Wage 2018$7.252018$00%
Iowa Minimum Wage 2017$7.252017$00%
Iowa Minimum Wage 2016$7.252016$00%
Iowa Minimum Wage 2015$7.252015$00%
Iowa Minimum Wage 2014$7.252014$00%
Iowa Minimum Wage 2013$7.252013$00%
Iowa Minimum Wage 2012$7.252012$00%
Iowa Minimum Wage 2011$7.252011$00%
Iowa Minimum Wage 2010$7.252010$00%
Iowa Minimum Wage 2009$7.252009$00%
Iowa Minimum Wage 2008$7.252008$00%

Iowa minimum wage history for the past 10+ years – downloadable PDF below

Iowa minimum wage history

Iowa Minimum Wage History – Downloadable PDF




EIN Number Iowa

As an Iowa business owner and employer, or someone that is looking to register an LLC or an incorporated company in Iowa with the goal of hiring employees, now, or in the future, you will need to have an Iowa EIN number.

An EIN is also known as an Employer Identification Number and is issued by the internal revenue service (IRS). We have created a guide on how to get an EIN number in Iowa with the IRS, and it includes links to the appropriate sources and forms and the differences between whether you are a U.S. citizen or a foreign national applying for an Iowa EIN.