Iowa’s annual sales tax holiday is scheduled for Friday, Aug. 6, and Saturday, Aug. 7. The sales tax holiday serves as a time to save on clothes, shoes and other items. In general, select clothing and footwear are tax exempt on the weekend, meaning no state sales tax will be collected.
Items included are articles of clothing or footwear with a sales price of less than $100, and the exemption carries for all articles of clothing priced under $100, regardless of how many items are sold to the same customer.
According to the Iowa Department of Revenue, businesses which are open on Friday, Aug. 6, and Saturday, Aug. 7, are required to participate. Businesses cannot advertise they will pay or otherwise absorb the sales tax on items which don’t qualify. Clothing does not include watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, roller blades, skates, and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear.