Iowa's tax-free weekend is in August. Here's how to avoid paying sales tax on shoes, clothing

Hannah Rodriguez, Des Moines Register
·3 min read

Iowa's sales tax-free weekend could not arrive any sooner as inflation continues to skyrocket.

According to reporting from USA Today, consumer prices surged 9.1% in June over last year.

Shoppers feeling the pain of rising expenses can find some relief on clothing and shoes from Aug. 5-6 when Iowa's sales tax is waived during the annual two-day holiday weekend.

Iowa's sales tax ranges from 6% to 7% depending on your location, so parents looking to save on back to school gear can shop at a discount.

Here's what you need to know about this year's savings:

When is the tax-free weekend?

Iowa's tax-free weekend starts the first Friday in August.

This year, it begins at 12:01 a.m. Friday, Aug. 5, and ends at midnight on Saturday, Aug. 6. Sunday is not included in the holiday weekend.

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What can I buy tax-free?

Clothing and shoes priced under $100 are sales tax-free.

Dozens of items are eligible from diapers and baby clothes to jeans and sweatshirts. Specialty items like backpacks, most sports equipment and cosmetics will still be taxed.

For a full list of what will and will not be taxed, visit the Iowa Department of Revenue's website at tax.iowa.gov.

Shoppers will avoid paying Iowa's 6% sales tax on all qualifying purchases. In some areas where a local option sales tax is in place — including in the Des Moines metro — shoppers won't pay their normal 7% sales tax.

Where can I shop?

From big-box stores to small retailers, all businesses in Iowa that are open Aug. 5 and Aug. 6 are required to participate.

Iowa's tax-free weekend also extends to online shopping even for businesses not based in the state.

If an online retailer mistakenly charges state sales tax on your order, the Iowa Department of Revenue offers reimbursements through an IA 843 Claim for Refund form available online at tax.iowa.gov.

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Do coupons and sales affect the tax 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.

How do exchanges work?

If it's the same item, just a different size or color, no sales tax is due even if the exchange is made after the holiday weekend.

If an exchange is made for a different item, sales tax will be due even if both items were the same price.

Hannah Rodriguez covers retail for the Des Moines Register. Reach her at herodriguez@registermedia.com or on Twitter @byherodriguez.

This article originally appeared on Des Moines Register: How Iowa's tax-free weekend works, dates and more for 2022