When Is Iowa’s Tax-Free Weekend and What Qualifies?

A sales tax holiday offers consumers a temporary reprieve from state and local sales taxes on specific purchases. These periods aim to provide financial relief to households, often aligning with back-to-school shopping seasons. They also stimulate local economies by encouraging consumer spending within the state.

Dates and Duration

Iowa’s annual sales tax holiday is consistently observed on the first Friday and Saturday of August. For 2025, this period is scheduled from 12:01 a.m. on Friday, August 1, until midnight on Saturday, August 2. This two-day event is a statewide initiative, meaning all businesses open during this timeframe are required to participate. The tax exemption does not extend into Sunday.

Qualifying Purchases

During Iowa’s sales tax holiday, a tax exemption applies to specific articles of clothing and footwear. These items must have a selling price of less than $100 per individual item to qualify for the exemption. The Iowa Department of Revenue broadly defines qualifying “clothing” as any article of wearing apparel and typical footwear intended to be worn on or about the human body. This includes a wide range of everyday items such as jeans, t-shirts, athletic shoes, sandals, boots, and baby clothes.

Many common apparel items like bathing suits, belts, bras, coats, diapers, dresses, hats, hosiery, pajamas, socks, and underwear are eligible for the tax exemption. Uniforms, whether for school or work, also qualify, provided each individual component is priced under the $100 limit. The exemption applies to each eligible item individually, even if the total transaction exceeds $100.

Non-Qualifying Purchases and Limitations

Not all items are exempt from sales tax during the holiday, even if they are worn on the body. Items specifically designed for athletic activity or protective use are not included in the exemption, such as skates, cleats, pads, and sports uniforms. Accessories like watches, watchbands, jewelry, umbrellas, handkerchiefs, and non-prescription sunglasses are also taxable. Other excluded items include sporting equipment, backpacks, suitcases, and wigs.

The $100 per-item limit is strictly applied; if a single item of clothing or footwear costs $100 or more, it is fully taxable and does not receive any partial exemption. For purchases made online, the exemption applies if the item is ordered and paid for during the holiday period, regardless of when it is delivered. Items sold as a set must be considered as a single unit, and if the combined price exceeds $100, the entire set is taxable.