Iowa Minimum Wage and Income Tax 2026
What it costs to pay people and earn money in Iowa.
Minimum wage$7.25per hour
Income tax3.80% flat
State sales tax6.00%about 6.94% with local tax
Corporate tax7.10%
Minimum wage in Iowa
The minimum wage is $7.25 an hour, the same as the federal rate.
Full time at 40 hours, that is $290 a week or $15,080 a year. It ranks 32 of 51, higher than 0 others.
As of July 1, 2026. Source: U.S. Department of Labor.
Income tax in Iowa
Iowa has a flat income tax of 3.80%.
The top rate ranks 35 of 51.
Single filers, as of January 1, 2026. Source: Tax Foundation.
Corporate tax in Iowa
The top corporate income tax rate is 7.10%. 5.50% up to $100,000 of income.
It ranks 18 of 51.
As of April 2, 2026. Source: Tax Foundation.
Sales tax in Iowa
The state rate is 6.00%. With the average local tax, shoppers pay about 6.94%.
As of July 1, 2026. Source: Tax Foundation.