Iowa Tax-Free Holiday On Friday and Saturday

Customers will have an additional incentive to shop the next few days, as Iowa’s annual sales tax-free holiday will take place today and tomorrow. On those dates, sales tax will not be charged on most types of clothing or footwear purchases that cost less than $100, although there are exceptions such as jewelry and sporting equipment. Online or mail-order purchases are also eligible, as long as they are ordered and paid for during the exemption period — even if they are delivered after the two-day event concludes. Iowa’s state sales tax is 6%. The first statewide sales tax holiday was instituted in New York in 1997, in response to retailers’ concerns that they were losing customers to nearby states that did not tax clothing sales. Iowa held its first sales tax holiday in 2000.