Iowa's tax-free weekend is Aug. 1-2. Here's what items you can save money on
Iowa's annual sales tax holiday returns Aug. 1-2, just in time for families looking to save a little money while back-to-school shopping.
Iowa's sales tax normally ranges from 6-7%, but that tax is waived on certain items during the tax-free weekend. All businesses open during the holiday must participate, according to the Iowa Department of Revenue, and eligible items purchased online, or by mail order or catalog, are also exempt as long as they're ordered and paid for during the exemption period.
Here's everything you need to know about the 2025 sales tax holiday.
When is Iowa's sales tax holiday this year?
This year's exemption period runs from 12:01 a.m. Friday, Aug. 1, until midnight Saturday, Aug. 2. Sunday, Aug. 3, is not included in the tax-exempt period.
What items are tax-free and what items aren't?
Clothing and shoes under $100 will be free of sales tax throughout the weekend.
Examples of tax-free items: underclothes, sneakers, coats and jackets, belts, jeans, diapers, work uniforms, costumes and bridal apparel.
The exemption does not apply to any item that costs $100 or more.
It also doesn't apply to backpacks, garment bags, watches and jewelry, umbrellas, clothing repairs or alterations, sporting equipment or other special clothing or footwear for athletics.
Find the state's list of sales tax-exempt items — and items that are taxable — .
Are online sales included?
Yes, items purchased online are included in the tax exemption as long as they fit the normal requirements. As long as items are ordered and paid for during the holiday, it does not matter if delivery isn't complete until after the holiday has concluded.
Back-to-school shopping tips to save money
The estimates families will spend an average of $858 this year on back-to-school items. That's slightly down from last year.
Of that spending, families are expected to shell out around $295 for electronics this year and over $415 on clothing and accessories. Another $143 is expected to go toward school supplies.
Carol Ehlers, a human sciences specialist in family well-being with Iowa State University Extension and Outreach, said families need to plan ahead and budget for back-to-school purchases.
In a news release last summer, to Iowans ahead of the tax-free holiday weekend:
- Plan ahead: Plan for major clothing and shoe purchases before you go shopping during Iowa’s sales tax-free weekend event.
- Set a budget and stick to it: Be careful not to overspend just because the tax-free weekend is occurring.
- Compare prices: Use the sales circulars from your newspaper to compare prices on the items you wish to buy. Visit the websites of several stores where you usually shop. If you tend to buy your kids' jeans or sneakers at national retail outlets, visit their websites during tax-free weekends to find out which store is offering the better deal.
- Know the rules and expect a busy shopping weekend: The Iowa Legislature approved the tax holiday in 2000 to help boost the economy and give consumers a break. Previous tax-free holidays have been shown to pump up sales for everyone from big-box retailers to mom-and-pop shops. Some merchants report double-digit increases in sales, compared to a typical August weekend.