State guide — IA

Iowa tipped & gig worker guide.

State minimum wage, tipped direct wage, tip credit rules, and state income tax — what the law actually looks like for Iowa service workers.

Minimum wage

$7.25

state minimum, 2026

Tipped wage

$4.35

direct, before tips

State income tax

3.8%

flat

Tip credit

$2.90

allowed

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