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Just a friendly reminder that Iowa’s Annual Sales Tax Holiday is fast approaching! As the holiday occurs every year on the first Friday and Saturday in August, that means that this year’s holiday will take place on August 2nd and 3rd. This is a great time for back-to-school shopping, but remember that the sales tax exemption only applies to certain items, specifically clothing and footwear that fit certain criteria.

The general rules of the sales tax exemption are the following:

  • No sales tax, including local option sales tax, will be collected on sales of an article of clothing or footwear having a selling price less than $100.00.
  • The exemption does not apply in any way to the price of an item selling for $100.00 or more.
  • The exemption applies to each article priced under $100.00 regardless of how many items are sold on the same invoice to a customer.

More information on Iowa’s Sales Tax Holiday can be found here. Likewise, a guide to some of the items that can be exempt vs. non-exempt (i.e. still taxable) can be found here.