Hunter
04/18/25
Iowa lawmakers are advancing bills that would exempt workers from paying state tax on tips and overtime.
The House Ways and Means Committee unanimously advanced House File 268, which would exempt income from cash tips effective this January. Although Iowa’s minimum wage is set at the federal rate of $7.25 per hour, tipped workers have a minimum wage of $4.35 an hour.
House file 110 would exempt overtime pay from state income taxes. Representative Michael Sexton of Rockwell City says he’s sponsoring the bill because it was a top issue among his constituents.