Iowa sales tax holiday runs August 4–5, 2023
Every year, Iowa provides a sales tax holiday for select clothing and footwear priced less than $100. The 2023 tax-free weekend starts at 12:01 a.m. Friday, August 4, and concludes midnight on Saturday, August 5.
All businesses registered for Iowa sales and use tax — including out-of-state businesses — are required to participate in the Iowa sales tax holiday. Retailers must not charge consumers state or local sales tax on qualifying transactions during the tax-free weekend.
Some states allow retailers to absorb the sales tax on non-qualifying goods during a sales tax holiday. Iowa does not: Retailers cannot advertise that they’ll pay or absorb Iowa sales tax on any product that doesn’t qualify for the temporary sales tax exemption.
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