Just in time for “Back to School” shopping. The 16th annual Iowa Sales Tax Holiday will be held on Friday and Saturday, August 7-8. On these days, everyday clothing and footwear under $100 will be exempt from the state 6% sales tax and the 1% local option tax.
Please Be Aware That:
- This is an annual event on the first Friday and Saturday of August.
- The holiday does not include Sunday.
- Businesses that are open on these days are required to participate.
- Businesses cannot advertise that they will pay or otherwise absorb the sales tax on items that don’t qualify.
- When completing the tax return, list qualifying Sales Tax Holiday sales on the “exemptions” line.
“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.
For more information, please see the Iowa Department of Revenue website.