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.
Visit the Iowa Department of Revenue website for additional guidance. To learn more about sales tax holidays in general and which states have them, read 2023 sales tax holidays.
