Everything You Need to Know About Iowa’s Tax Free Holiday in 2025

If you're looking to save a little money on your child's back-to-school wardrobe, you may want to plan to do your shopping next weekend! Iowa's Annual Sales Tax Holiday for 2025 is coming up on Friday and Saturday.

When is it?

According to the official website for the Iowa Department of Revenue, Iowa's Annual Sales Tax Holiday is held each year on the first Friday and Saturday of August. In 2025, it will begin at 12:01 a.m. on Friday, August 1st, and end at midnight on August 2nd (technically Sunday, August 3rd). The holiday does NOT continue into Sunday, so be sure to get your shopping done by Saturday night!

What items will be tax-free?

Clothing and shoes that are less than $100 are included in Iowa's tax-free holiday. The Department of Revenue defines those as "any article of wearing apparel and typical footwear intended to be worn on or about the human body." Here are some of the items that are tax exempt, courtesy of a list from the Iowa Department of Revenue:

• Athletic Supporters
• Bathing Suits
• Belts
• Bibs
• Boots
• Bras
• Coats/Jackets
• Costumes
• Diapers
• Formal Wear
• Graduation Caps/Gowns
• Hats
• Hosiery
• Jerseys
• Lingerie
• Pajamas/Robes
• Raincoats
• Scarves
• Shoe inserts/laces
• Socks
• Ties
• Underwear
• Uniforms (for school or work)
• Vests

All businesses that are open on Friday and Saturday are required to participate, and yes, it DOES include online purchases! The exemption applies to each individual, eligible item priced under $100, which means that you'll get the exemptions even if the transaction's total add ups to more than $100.

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What items are NOT included in the tax exemption?

Just because you can wear it, doesn't mean it's exempt! Here are some of the things listed as "Taxable Items" on the Iowa Department of Revenue's website:

• "Any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear" - skates, cleats, pads, dance shoes, sports uniforms, helmets, weightlifting belts, etc.
• Backpacks/Bags
• Belt Buckles (with no belt attached)
• Gloves (sporting or protective)
• Hair Accessories
• Jewelry/Watches/Watchbands
• Purses/Wallets
• Rented Clothing
• Sunglasses (except prescription)
• Umbrellas
• Wigs

For more details on Iowa's Sales Tax Holiday for 2025, check out the Department of Revenue's website HERE.