IOWA — Iowa’s tax-free weekend runs August 1st through the 2nd this year. What does that mean for shoppers, and what qualifies for the holiday?
What is Tax-Free Weekend?
During the annual event, the first Friday and Saturday of August are designated as a tax-free holiday weekend. The 2025 tax-free period runs from 12:01 a.m. Friday, August 1, to midnight Saturday, August 2.
In Iowa, sales tax ranges from 6-7% and during the weekend, certain items are exempt from that tax. According to the Iowa Department of Revenue, all businesses open during the holiday must participate, and items purchased online or through a catalog also qualify as long as they are paid for during the exemption period.
What is and isn’t included?
Items included in the tax-free weekend include clothing and shoes under $100:
Underclothes
Sneakes
Coats
Jackets
Belts Jrans
Diapers
Works Unifroms
Costumes
Items not included in the tax-free weekend include:
Backpacks
Watches
Jewelry
Umbrellas
Clothing Repairs, Alterations
Sporting Equipment
Specialty clothing or shoes for athletics
View the complete list of Taxable and Exempt items at the Iowa Department of Revenue website.
Do sales and coupons still work during the tax-free period?
Tax-free weekend depends on the cost of an item, so coupons and store sales can affect the tax if the item is over or under $100.
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.
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.
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