The minimum wage in Iowa City is $7.25/hour in 2026. See how it compares to the MIT living wage of $19.50/hour and local cost of living.
Last updated: May 2026 · Data: MIT Living Wage Calculator, C2ER, U.S. Census, BLS, IRS, state and city sources
Calculate annual, monthly, and weekly income at any hourly wage in Iowa City.
The minimum wage in Iowa City is the federal rate of $7.25/hour. Iowa sets its minimum wage at the federal level and prevents cities and counties from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Iowa City. The bigger question for most workers is how that compares to what it actually costs to live in Iowa City. With average 1-bedroom rent near $1,100/month and a cost-of-living index of 92 (US average = 100), the gap between the minimum wage and a true living wage is significant.
| Benchmark (Iowa City, 2026) | Hourly | Annual (full-time) |
|---|---|---|
| Applicable minimum wage | $7.25 | $15,080 |
| MIT living wage (single adult) | $19.50 | $40,560 |
| MIT living wage (family of four, one earner) | $39.50 | $82,160 |
| Federal minimum wage | $7.25 | $15,080 |
| Average rent (1-bedroom, annual) | - | $13,200 |
Living wage figures: MIT Living Wage Calculator for Johnson County. Minimum wage reflects the rate applicable to most private employers in Iowa City.
Iowa City is home to the University of Iowa and its major academic medical center, anchoring an economy built on higher education, healthcare, and a celebrated literary and arts community as a UNESCO City of Literature.
| Local Metric | Iowa City (2026 estimate) |
|---|---|
| Metro population | 75,000 |
| County / jurisdiction | Johnson County |
| Cost of living index (US avg = 100) | 92 |
| MIT living wage, single adult | $19.50/hour |
| MIT living wage, one earner supporting a family of four | $39.50/hour |
| Applicable minimum wage | $7.25/hour |
| Average rent, 1-bedroom | $1,100/month |
| Average rent, 2-bedroom | $1,350/month |
| Median home price | $270,000 |
| Median household income | $55,000/year |
| Combined sales tax rate | 7% |
| Effective property tax rate | 1.6% of value/year |
Local figures are 2026 estimates compiled from the MIT Living Wage Calculator, the C2ER Cost of Living Index, U.S. Census and Zillow housing data, and city and county sources. Verify current figures before relying on them.
The minimum wage in Iowa City is the federal rate of $7.25/hour. Iowa sets its minimum wage at the federal level and prevents cities and counties from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Iowa City. A full-time worker (40 hours/week, 52 weeks) earns about $15,080 per year gross before taxes at that rate.
Not for a single adult. The MIT Living Wage Calculator estimates a single adult in Johnson County needs about $19.50/hour (roughly $40,560/year) to cover basic costs. That is $12.25/hour above the applicable minimum wage, and a one-earner family of four needs closer to $39.50/hour.
At $7.25/hour, full-time work (2,080 hours/year) produces about $15,080 gross. Part-time at 30 hours/week is roughly $11,310/year. Average 1-bedroom rent in Iowa City is about $1,100/month, or $13,200/year.
Iowa sets its minimum wage at the federal level and prevents cities and counties from setting their own, so the federal minimum of $7.25/hour applies to most private employers in Iowa City.
The federal minimum wage is $7.25/hour and has not changed since 2009. Iowa sets its minimum wage at the federal level, so the federal minimum of $7.25/hour applies in Iowa City.