Monday, September 16, 2024

It’s tax-free weekend in Iowa. What to know before going back-to-school shopping.

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Iowa’s tax-free holiday is quickly approaching. From Friday, Aug. 2 through Saturday, Aug. 3, a variety of clothing, shoes, weather-appropriate wear and more will all be tax-free with a few exceptions.

Get ready to dress yourself and your kids with these items and skip the sales tax.

When does tax-free weekend start in Iowa?

Every year, the first Friday and Saturday of August are designated as the state’s “tax-free holiday” where stores that sell clothes and shoes are required to take off sales tax for a limited time.

This year, the savings start at 12:01 a.m. on Friday, Aug. 2, and goes until midnight on Saturday, Aug. 3. Sunday, Aug. 4 is not included in the tax-free holiday.

List: When does school start for Des Moines area schools?

What is included in tax-free weekend in Iowa?

Most clothes and shoes will be completely tax-free this holiday. You can dress yourself from your head with hats, all the way down to your toes with socks and shoes, without having to pay the normal 6-7% sales tax in Iowa.

Shirts, shoes, shorts and skirts are all included in the department’s list of items that can be exempt from tax this weekend. So are adult diapers, swim gear, cowboy boots, sleepwear and more. A complete list of items that will be tax-free is available from the Iowa Department of Revenue.

Even formal wear like tuxedos, bow ties, prom dresses and wedding attire including wedding dresses, will be tax-free. Uniforms and religious clothing are also included.

Big-box stores and small businesses with operating hours within the holiday will participate in tax-free weekends.

Is tax-free weekend online too?

Yes, Online purchases are also eligible even if they’re delivered at a later date.

What items will not be tax-free?

The tax exemption over tax-free holiday does not apply to any item that costs $100 or more.

It also doesn’t apply to back-to-school supplies like pencils, markers and notebooks.

Items you will have to pay tax on include:

  • Cosmetics
  • Athletic gear
  • Backpacks
  • Jewelry
  • Most rented clothing

A complete list of items that will not be tax-free is available from the Iowa Department of Revenue.

Do coupons and sales affect the tax-free holiday?

  • Buy one, get one free: If an item costs more than $100, the sales tax will apply — even if you’re getting a second item of the same value for free.
  • Buy one, get one half off: If the first item costs $110 and you can get a second for half off ($55), then sales tax will be charged on the first item, but not the second. 
  • Manufacturer’s coupon: If an item costs $110 and the customer presents a manufacturer’s coupon that lowers the price to $90, sales tax will still be applied. A manufacturer’s coupon does not change the sale price of an item.
  • Store coupon or discount: If a store coupon or discount brings the price of an item under $100, it will be exempt from sales tax.

Reporting contributed by Kate Kealey

Kyle Werner is a reporter for the Register. Reach him at kwerner@dmreg.com.

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