Washington Evening Journal
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Sales tax holiday offers savings this weekend
Clothes and shoes under $100 are tax free in Iowa on Friday and Saturday.
By Rylee Wilson - Southeast Iowa Union
Aug. 5, 2021 11:12 am
Back-to-school shoppers looking for savings on clothes and shoes can take advantage of Iowa’s annual sales tax holiday on Aug. 6-7.
The holiday starts at 12:01 a.m. on Friday and ends at midnight Saturday.
All clothes and shoes under $100 will not be subject to the 6 percent Iowa sales tax, as well as the 1 percent local-option sales tax in place in Washington, Fairfield, and Mt. Pleasant.
The tax break only applies to clothes and shoes — not to other items like backpacks, jewelry or athletic equipment.
For the full list of items that apply to the tax holiday, see tax.iowa.gov.
Danae Drish, assistant manager at Brown’s Shoe Fit Company in Fairfield, said that the sales tax holiday is another boost in the middle of a busy back-to-school season.
She said the sale is an especially popular time to get kid’s shoes, which tend to be less expensive than adult sizes, because the tax holiday only applies to items under $100.
Drish has been stocking up on kid’s shoes for the store.
“You want to have more options for kids, especially since they like the fun bright colors, and they’re excited to go back to school and show all their friends,” she said. “It’s definitely a good time to stock up on kid’s shoes.”
Leslie Bailey, owner of Boho Bailey, a clothing boutique in Washington, said there’s not much preparation that goes into the tax holiday — the store’s point of sale system will deduct the tax automatically on those days.
She said the store doesn’t do a much extra business around the sales tax holiday but will promote that it is happening on Facebook.
“It does have some impact,” Bailey said. “People are looking to save money.”
Businesses in Iowa won't collect sales tax on clothing and footwear costing less than $100 during the annual holiday, which takes place on the first Friday and Saturday of August. Above, Holly Sipes of Columbus Junction and her stepson Justin shop in Cedar Rapids in this 2015 photo. (Jim Slosiarek/The Gazette)

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