Iowa’s sales-tax holiday takes place Friday, August, 2 at 12:01 a.m. through August 3 at midnight. During that time, you can avoid paying the state sales tax of 6% as well as local tax (which varies) when you buy qualified clothing items — which is perfect timing for back-to-school shopping.
Offers.com created this guide so Iowa consumers know exactly what’s tax-free:
What is included in Tax-Free Weekend in Iowa?
The tax holiday encompasses clothing items priced less than $100 each. If an item is more than $100, sales tax will be charged on the entire amount.
The waived sales tax applies to as many items under $100 that you want to purchase (there is no limit on the number of items you can buy).
Iowa defines clothing as: “Any article of wearing apparel and typical footwear intended to be worn on or about the human body.”
The tax holiday does NOT include watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, rollerblades, skates, and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.
Carefully read the full list of taxable and exempt items. Don’t assume that, just because you can wear an item, it’s exempt from taxes. For example, cowboy boots under $100 are tax-free, but fishing boots are not.
Does Iowa tax-free weekend include online?
Yes. You can avoid taxes on items you order online as long as you place your order during the tax-free holiday.
Tips for shopping during Iowa’s tax-free holiday
Keep the following tips in mind to get the absolute most out of tax-free weekend in Iowa:
- -Manufacturer coupons do not reduce the price of the item for the purposes of waived sales tax. For example, if a dress is priced at $101 and the coupon would reduce it by $10, you still have to pay sales tax.
- -You can avoid taxes on layaway items as long as you put the merchandise on layaway during the tax-free period.
- -Note that Iowa’s tax-free holiday includes clothing only. Unlike other states, it does not include computers and school supplies.