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Reference · State of Iowa

Iowa trade labor costs

What a plumbing, HVAC or electrical tech earns in Iowa, what the state adds to payroll, whether labor is taxed, what a license costs, how lien rights work and when the heating and cooling seasons peak — each figure from the agency that sets it, with the date we read it.

  • Wages BLS OEWS May 2025
  • Payroll and licenses state agencies
  • Checked and
Plumbing median
$30.72/h+0.2% vs the U.S.26th of 51
HVAC median
$29.17/h−0.5% vs the U.S.27th of 51
Electrical median
$29.26/h−3.7% vs the U.S.40th of 51
New-employer SUTA
1.00%on the first $20,400
Payroll programs
Noneno paid-leave or disability program found
Sales tax on labor
Dependsrepair and installation on buildings

Pay in Iowa

Hourly pay across all industries, May 2025. Half of the workers in each trade earn less than the median and half earn more; one in ten earns less than the 10th percentile. Union and non-union, no self-employed.

Hourly pay, 10th to 90th percentileDrawn to scale: one dollar axis for all three trades

  • PlumbingU.S. median $30.67

    plumbers: 10th percentile $21.88, 25th $24.95, median $30.72, 75th $41.02, 90th $46.87 an hour; U.S. median $30.67.

  • HVACU.S. median $29.33

    HVAC techs: 10th percentile $20.69, 25th $23.34, median $29.17, 75th $36.51, 90th $41.48 an hour; U.S. median $29.33.

  • ElectricalU.S. median $30.38

    electricians: 10th percentile $19.12, 25th $22.31, median $29.26, 75th $38.45, 90th $43.02 an hour; U.S. median $30.38.

  • 25th–75th percentile
  • State median
  • U.S. median
Hourly pay by percentile for plumbers, HVAC techs and electricians in Iowa, BLS OEWS May 2025
PercentilePlumbingHVACElectrical
10th$21.88$20.69$19.12
25th$24.95$23.34$22.31
Median$30.72$29.17$29.26
75th$41.02$36.51$38.45
90th$46.87$41.48$43.02
Mean$33.67$30.35$30.38
U.S. median$30.67$29.33$30.38
vs U.S.+0.2%−0.5%−3.7%
Rank26th27th40th
Jobs5,7303,84010,310

Dollars an hour. BLS occupations: Plumbers, pipefitters and steamfitters (SOC 47-2152); Heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021); Electricians (SOC 47-2111). “vs U.S.” compares the medians; rank 1 is the highest median of the 50 states and DC. Released May 15, 2026; the next survey is due each spring.

Payroll costs the state adds

What Iowa charges an employer on top of wages: unemployment tax, and any paid-leave or disability program funded through payroll, and who must carry workers’ comp. Federal Social Security, Medicare and unemployment tax apply in every state and are already in the calculator. Workers’ comp premiums depend on the class code and the insurer, so the card gives the rules, not a rate.

State unemployment tax (SUTA)

Iowa Workforce Development (IWD), Unemployment Insurance Tax Bureau

Wage base
$20,400 per employee a year
New-employer rate
1.00%
Construction
5.40%for new construction employers

Iowa Workforce Development, 2026 (Table D): construction employers 5.400% (Rank 9); non-construction 1.000% (Rank 4, minimum 1.000%).

Per tech, a year 5.40% × $20,400 = $1,102At the construction rate, for a plumber paid the state median ($30.72 × 2,080 h = $63,898). The calculator uses the rate alone.

State pages read

Workers’ compensation

Iowa Department of Inspections, Appeals, and Licensing, Workers' Compensation Division

Who must carry it
Any employeeEvery employer subject to Iowa’s workers’ compensation law must insure its liability (Iowa Code § 87.1). The law does not apply to some domestic and purely casual workers earning under $1,500 a year from the employer, or to most agricultural work (§ 85.1). legis.iowa.gov
Where to buy it
Private insurersCoverage must come from an insurer approved by the Iowa commissioner of insurance, or the employer may apply to the commissioner to self-insure (Iowa Code § 87.1). legis.iowa.gov
Owners
Proprietors, LLC members, LLP partners and partners working full-time in the business are covered only if they buy a policy naming them (Iowa Code § 85.1A); otherwise they may file a nonelection of coverage. Up to four corporate officers (president, vice president, secretary, treasurer) may reject coverage, filed online with the Division, or attached to the policy if the corporation has one (§ 85.1(5)). legis.iowa.gov · dial.iowa.gov
Construction
To register with the state, a contractor must comply with Iowa’s workers’ compensation laws and each year show proof of coverage, of relief from the insurance requirement, or a statement that it is not required to carry coverage (Iowa Code § 91C.2). legis.iowa.gov

Statute and agency pages read

Paid leave and disability insurance

We found no state paid family and medical leave or temporary disability insurance program funded through payroll in Iowa on October 28, 2026. State paid sick leave rules, where they exist, are not covered here.

New-employer rates usually last one to three years — longer in some states (four years in Indiana, four to five in D.C.); then the state assigns your own rate, and your rate notice wins over any figure here. The calculator below uses the construction rate where one is clear. Where a state’s own pages could not be read, the card says so and gives the U.S. Labor Department’s figure.

What a shop in Iowa needs to charge

The calculator’s example shop — three techs, $120,000 of overhead, a truck each, 10% net profit — with Iowa’s median wage for each trade and its unemployment tax filled in. Your own numbers will differ; change them in the calculator below.

Example shopBreak-evenRate, 10% profit
Plumbingwage $30.72$113.49$126.10→ $130
HVACwage $29.17$110.17$122.41→ $125
Electricalwage $29.26$110.36$122.62→ $125

Per billable hour; → is the rate rounded up, as the calculator rounds it. Everything except the wage and the unemployment tax is the national example (BLS, IRS and DOL figures listed on the labor rate calculator).

Change the numbers for your shop

The labor rate calculator, opened on Iowa: pick your trade, put in your own crew, pay and overhead, and the rate and break-even redraw as you type.

Your labor rate

Who does the billable work?

Example shop in Iowa: 3 techs at the state’s median plumber wage, $120,000 overhead. Change any number or pick another state.

Charge at least Example shop · Iowa

Charge at least $126.10 per billable hour; break-even $113.49.

Round up to $130 (+$3.90)

See it drawn to scale
Rate build-upDrawn to scale: every dollar the same height
Rate build-up for the example, drawn to scaleColumn from $0 to $126.10 per billable hour, drawn to scale: wage $52.51, taxes & benefits $14.37, overhead $32.87, truck $13.74, profit 10% $12.61. Break-even line at $113.49. Rounded up to $130.12345$0Labor$66.88Break-even$113.49Your rate$126.10Round up to$130
  1. Wage$63,897.60 ÷ 1,216.8 h$52.51
  2. Taxes & benefits27.36% of pay$14.37
  3. Overhead$120,000 ÷ 3,650.4 h$32.87
  4. Truck$16,719.14 ÷ 1,216.8 h$13.74
  5. Profit 10%of the price$12.61
Break-even
$113.49
Profit per hour
$12.61
Revenue a year
$460,330

$113.49 ÷ (1 − 10%) = $126.10rounded up to $130

Already showing the example.

Price your tasks at $130 an hourOpens the price book builder with this rate.

Billable hours
1,216.8per tech a year
Loaded wage
$39.12per paid hour
Labor
$66.88per billable hour
Overhead
$32.87per billable hour
Truck
$13.74per billable hour
Labor burden
27.36%over gross pay

What moves your rate

  • Every billable hour sold under $113.49 loses money.
  • At 70% billable instead of 65%, break-even drops to $105.39, $8.11 an hour less.
  • Cut $10,000 of overhead a year and break-even drops $2.74 an hour, to $110.75.
Show the math
  1. Worked hours2,080 h − 26 days × 8 h = 1,872 h
  2. Billable hours per tech1,872 h × 65% = 1,216.8 h
  3. Gross pay per tech$30.72 × 2,080 h = $63,897.60
  4. Employer taxes and comp$3,961.65 SS + $926.52 Medicare + $42.00 FUTA + $1,101.60 SUTA + $1,706.07 comp = $7,737.83
  5. Benefits$63,897.60 × 15.25% = $9,744.38
  6. Labor per billable hour$81,379.82 ÷ 1,216.8 h = $66.88
  7. Overhead per billable hour$120,000 ÷ (3 × 1,216.8 h) = $32.87
  8. Truck per billable hour$16,719.14 ÷ 1,216.8 h = $13.74
  9. Break-even$66.88 + $32.87 + $13.74 = $113.49
  10. Rate at 10% profit$113.49 ÷ (1 − 10%) = $126.10

Change the numbers

State and trade
Trade

Fills the wage and state unemployment tax (SUTA). Workers’ comp and everything else stay as they are.

Filled for Iowa3 figures
Wage Plumbing
$30.72/hr
Iowa median for plumbers · BLS OEWS May 2025
SUTA rate Construction
5.40%
Construction rate; other new employers pay 1.00% · Iowa Workforce Development, 2026
SUTA wage base Per tech
$20,400
Iowa · DOL Significant Provisions, July 2026

Your own rate notice wins. These are new-employer rates: after one to three years the state sets your own, and construction employers often pay a different rate.

Iowa: pay, payroll taxes and licensesSee all 50 states and DC
Iowa: the fine print

Iowa Workforce Development, 2026 (Table D): construction employers 5.400% (Rank 9); non-construction 1.000% (Rank 4, minimum 1.000%).

Crew and pay

People who bill hours. Office staff go in overhead.

Average base pay. Filled: Iowa median for plumbers, BLS OEWS May 2025.

Hours and time off2,080 h · 26 days off

40 hours × 52 weeks = 2,080.

Holidays, vacation and sick days, 8 h each. Example: 8 + 11 + 7 (BLS).

Optional. Paid at 1.5 × the wage. Leave 0 if none.

Billable time

Share of worked hours that ends up on invoices. Published figures run from 30% to 65%.

Billable hours1,216.8 hper tech · 3,650.4 h for the shop
Payroll taxes and benefits+27.36% of pay

Filled: Iowa construction rate, Iowa Workforce Development, 2026. Your notice wins.

Pay per tech the rate applies to. Filled: Iowa, DOL Significant Provisions, July 2026.

Use the rate on your policy. Example: BLS construction average.

Health, retirement and other benefits. Example: BLS construction average.

Loaded wage$39.12per paid hour · burden 27.36%

Included automatically (IRS, tax year 2026): Social Security 6.2% of pay up to $184,500, Medicare 1.45%, federal unemployment (FUTA) 0.6% of the first $7,000.

Shop costs

An example figure. Everything except field pay and trucks — split it in the worksheet below.

Payments, fuel, insurance and upkeep. Enter 0 if trucks are already in overhead.

Profit

Profit as a share of the price, not a markup on cost.

Your rate: $126.10 per billable hour · break-even $113.49. Back to the result

Sales tax on your work

What Iowa’s tax agency says about repair and installation labor on buildings and the parts and fixtures that go into them. This is what the agency’s pages say, not tax advice.

Labor
DependsRepair and installation labor for taxable services such as plumbing, pipe fitting and electrical work is taxed; the same labor on new construction, reconstruction, alteration, expansion or remodeling of buildings is exempt.Repairing a broken water heater, furnace or central air unit is a taxable repair; replacing a working furnace with a more efficient one is remodeling. A repair bill that isn’t itemized is taxed in full.
Materials
Depends on the job or contractConstruction and remodeling: the contractor pays tax on materials when buying them. Repairs and installations: the customer is charged tax on the materials.

Read October 24, 2026 on the agency pages listed under Sources. All 50 states and DC side by side.

Licenses and state fees

The license a shop needs from the state to contract for each trade, the board that issues it and the fees on its own schedule. Cities and counties can add their own licenses, registrations and permit fees; exam vendors and fingerprinting may charge more.

Plumbing and HVAC

State license

Iowa Plumbing and Mechanical Systems Board (Department of Inspections, Appeals, & Licensing)

  • Plumbing Plumbing Contractor license (with a Master plumbing licensee as master of record) plus contractor registration
  • HVAC Mechanical/HVAC-Refrigeration Contractor license (with a Master mechanical or HVAC-refrigeration licensee as master of record) plus contractor registration

Iowa law requires all plumbing and mechanical contractors (those providing plumbing, mechanical, HVAC, refrigeration, sheet metal or hydronic services on a contractual basis) to be licensed with the board and registered with DIAL.

FeeAmount
Exam approval application feeone-time (per trade discipline exam)$35
Contractor license fee3 years (prorated for new licenses)$250
Contractor registration fee3 years (prorated for new licenses)$150
Master license fee (full 3-year period; renewal same)3 years (prorated for new licenses)$240

All PMSB licenses are on a 3-year period (current: July 1, 2026 – June 30, 2029) and new-license fees are prorated (e.g. contractor license + registration $400 if applying Jul 1–Dec 31 of year 1). Quotes are from the on-time renewal fee table. Late fees: $60 after Aug 1, $100 after Sept 1. Paper applications add $25. Contractor also needs $500,000 liability insurance and a surety bond (not fees).

Keeping the license

Renewal
PlumbingAll Plumbing and Mechanical Systems Board licenses run on a common three-year period (currently July 1, 2026 to June 30, 2029); renewal opens May 1 of year three and late fees start August 1. dial.iowa.govHVACMechanical, HVAC-refrigeration and hydronic licenses from the Plumbing and Mechanical Systems Board run on the same three-year period (currently July 1, 2026 to June 30, 2029). dial.iowa.gov
Continuing ed.
PlumbingMaster and journeyperson plumbers need 8 hours of continuing education per three-year license: 2 hours of plumbing code, 4 hours of plumbing discipline and 2 hours of Iowa OSHA safety; at least half must be in person. dial.iowa.govHVACMaster and journeyperson HVAC-refrigeration licensees need 8 hours of continuing education per three-year license: 2 hours of mechanical code, 4 hours of HVAC/R discipline and 2 hours of Iowa OSHA safety. dial.iowa.gov
Reciprocity
PlumbingThe Plumbing and Mechanical Systems Board’s only reciprocity agreement (since May 2016) is with the South Dakota State Plumbing Commission, for journeyperson and master plumbing licenses earned by written exam. dial.iowa.govHVACThe board’s only reciprocity agreement (South Dakota) applies only to journeyperson and master plumbing licenses, so there is no reciprocity for mechanical or HVAC licenses. dial.iowa.gov

Sources read

Electrical

State license

Iowa Electrical Examining Board (Department of Inspections, Appeals, & Licensing)

Electrical Contractor license (held by or employing a Class A or B Master Electrician; must be registered with DIAL as a contractor)

An Electrical Contractor license is for a person affiliated with an electrical contracting firm who is (or employs) a Master A or B Electrician and is registered with DIAL as a contractor; all electrical contractors must register with DIAL.

FeeAmount
Electrical Contractor license fee, full 2026-2028 cycle (prorated by month of application; a Master Class A or B license is a separate license with the same fee)3 years (2026-2028 cycle)$375
DIAL construction contractor registration application feeapplication fee; registration must be renewed every year$50

The 2026-2028 fee chart prorates new licenses by month (e.g. $281.23 if applying in October 2026); renewal for the next 3-year cycle is $375 (shown as '* $375.00' from October 2028). Late renewal adds 10% per month. Exam fee not stated on pages. DIAL contractor registration must be renewed every year.

Keeping the license

Renewal
Iowa electrical licenses from the Electrical Examining Board run on a three-year cycle (current cycle 2026-2028), with new licenses prorated and late renewals charged 10% per month. dial.iowa.gov
Continuing ed.
Check with the boardThe official pages and rules we read on November 4, 2026 do not settle it.
Reciprocity
The Iowa Electrical Examining Board has reciprocal licensing agreements with Alaska, Arkansas, Colorado, Minnesota, Montana, Nebraska, New Hampshire, North Dakota, Oklahoma, South Dakota, Texas, Wisconsin and Wyoming, mainly for journeyman licenses earned by a state exam scored 70% or higher and held at least one year. dial.iowa.gov

Sources read

Beyond the trade license

Contractor registration, bond and insurance the state asks of a trade shop

Registration
Besides the trade license, every Iowa construction contractor, including plumbers and electricians, must register with the Department of Inspections, Appeals, and Licensing under Iowa Code chapter 91C ($50 application fee, Iowa unemployment insurance number required). Plumbing and mechanical contractors file the registration together with their Plumbing and Mechanical Systems Board contractor license ($150 registration fee). dial.iowa.gov
Bond
$5,000Plumbing and mechanical (HVAC) contractor licenses require a surety bond of at least $5,000 guaranteeing performance to the contractor’s customers. Separately, contractors based outside Iowa must file a $25,000 bond to register as contractors. dial.iowa.gov
Insurance
$500,000Plumbing and mechanical contractors must carry public liability insurance of at least $500,000 from an Iowa-licensed insurer, plus workers’ compensation and unemployment insurance compliance for the contractor registration. dial.iowa.gov

Board and statute pages read

State or city license?

State license only Who licenses the trades in Iowa

Plumbing, mechanical/HVAC and electrical licenses are issued by the state. A city or county that does its own electrical inspections may charge permit fees but may not make a state-licensed electrician pay a local license fee or take a local exam (Iowa Code 103.29); it may only require a copy of the state license on file. legis.iowa.gov

State and city pages read

What Iowa law says about lien rights on private jobs — the notices, the deadline to file and the deadline to sue — and whether a statute sets payment deadlines or caps retainage. Read from the statute itself; it is not legal advice.

Mechanic’s lien

Iowa Code §§ 572.1 to 572.34Chapter 572 Mechanic’s Lien

You, hired by the owner
On residential construction (single-family and two-family dwellings), a general contractor who uses subs must give the owner the boldface owner notice about the Mechanics’ Notice and Lien Registry (Iowa Code § 572.13) and post a notice of commencement of work to the registry within 10 days after work starts (§ 572.13A); a general contractor who fails to do so has no lien. Commercial jobs have no such requirement. legis.iowa.gov
Subs and suppliers
Notice requiredResidential: every subcontractor must post a preliminary notice to the Mechanics’ Notice and Lien Registry or it has no lien, and its lien reaches only the balance the owner still owes the general contractor when the notice is posted and received (Iowa Code § 572.13B). Commercial: anyone furnishing to a subcontractor must notify the general contractor in writing within 30 days of first furnishing (§ 572.33). legis.iowa.gov
File the lien
90 daysPost the lien to the state’s online Mechanics’ Notice and Lien Registry within 90 days after your last labor or materials for full lien rights; you may still post up to 2 years and 90 days after, but then you must serve written notice on the owner and the lien reaches only what the owner still owes the general contractor at that time (Iowa Code §§ 572.9-572.11). The same deadlines apply to general contractors and subs. legis.iowa.gov
Enforce it
2 yearsSue to enforce the lien within 2 years (24 months) counted from the end of the 90-day period after your last labor or materials (Iowa Code § 572.27); if the owner serves a written demand to sue, you must file within 30 days or lose the lien (§ 572.28). legis.iowa.gov
Homes
The registry notices (general contractor’s owner notice and notice of commencement, the sub’s preliminary notice) apply only to residential construction, meaning single-family or two-family dwellings used mainly as residences (Iowa Code §§ 572.1(10), 572.13, 572.13A, 572.13B). A residential sub’s lien is limited to what the owner still owes the general contractor when the preliminary notice is posted and received. legis.iowa.gov

Statutes read

Payment deadlines and retainage

Private jobs (public contracts have their own rules)

Prompt payment
No private-job statuteIowa has no statute setting payment deadlines or late-payment interest on private construction jobs; the payment and retention rules in Iowa Code chapter 573 cover public improvements. On commercial jobs, § 572.33A lets the owner hold payment to the general contractor until 90 days after completion unless the contractor supplies lien waivers from everyone or a bond. legis.iowa.gov
Retainage
No private-job capIowa has no private-job retainage statute; a code search for retainage returns only public-improvement rules (Iowa Code §§ 573.12-573.15A and § 262.34 for the Board of Regents). legis.iowa.gov

Statutes read

Heating and cooling season in Iowa

Degree days, NOAA’s index of the energy it takes to heat or cool a building: each degree a day’s mean temperature falls below 65 °F is one heating degree day, each degree above is one cooling degree day. Thirty-year normals for Des Moines airport, month by month.

Heating degree days
6,178
Cooling degree days
1,070
Nights ≤ 32 °F
128
Days ≥ 90 °F
22
Normal heating and cooling degree days (base 65 °F) and freezing nights by month at Des Moines airport, NOAA 1991–2020 normals
MonthHeatingCoolingNights ≤ 32 °F
Jan1,322030
Feb1,068025
Mar796219
Apr421106
May15371–
Jun15230–
Jul1342–
Aug4280–
Sep86120–
Oct383164
Nov773017
Dec1,156027

Heating carries the load at Des Moines airport: 6,178 heating degree days a year against 1,070 cooling degree days, peaking in January (1,322).

The lightest months for heating and cooling together are May and September (224 and 206 degree days).

Nights at or below 32 °F: about 128 a year, ten or more a month in November through March; 11 at or below 0 °F. Days reaching 90 °F: about 22 a year, the most in July.

Weighted by where Iowa’s people live, NOAA’s statewide normals (1981–2010) are 6,815 heating and 796 cooling degree days — 11th for heating and 26th for cooling among the 48 contiguous states (the contiguous U.S.: 4,332 and 1,272).

Station: Des Moines airport (USW00014933), NOAA NCEI U.S. Climate Normals 1991–2020 — station file; statewide figures: NOAA Climate Prediction Center. Bars share one scale: the longest is 1,322 degree days. Read .

Sources

Each page opened on the date shown. License, registration, lien and workers’ comp sources are linked beside each fact above. Figures change: the agency’s own page wins over this one.

  1. May 2025 State Occupational Employment and Wage Estimates (state file oesm25st)U.S. Bureau of Labor Statistics · read October 28, 2026
  2. Occupational Employment and Wages — May 2025 (news release USDL-26-0725, May 15, 2026)U.S. Bureau of Labor Statistics · read October 28, 2026
  3. Public Data API (national OEWS series for the three occupations)U.S. Bureau of Labor Statistics · read October 28, 2026
  4. Unemployment insurance tax rates (workforce.iowa.gov)Iowa Workforce Development (IWD), Unemployment Insurance Tax Bureau · read October 28, 2026
  5. Significant Provisions of State Unemployment Insurance Laws, Effective July 2026U.S. Department of Labor, Office of Unemployment Insurance · read October 28, 2026
  6. Iowa Contractors GuideIowa Department of Revenue · August 27, 2025 · read October 24, 2026
  7. Iowa Code §§ 572.1 to 572.34 — Chapter 572 Mechanic’s LienOfficial state code · read November 4, 2026
  8. Workers’ compensation coverage requirementsIowa Department of Inspections, Appeals, and Licensing, Workers' Compensation Division · read November 4, 2026
  9. U.S. Climate Normals 1991–2020, Des Moines airport (USW00014933)NOAA National Centers for Environmental Information · read November 4, 2026
  10. Population-weighted daily heating and cooling degree day normals, 1981–2010 (states and CONUS)NOAA National Weather Service, Climate Prediction Center · read November 4, 2026