DES MOINES, Iowa — Iowa’s annual sales tax holiday returns Aug. 2nd & 3rd, just in time for families looking to save a little money while back-to-school shopping. Iowa’s sales tax normally ranges from 6-7%, but that tax is waived on certain items during the tax-free weekend. All businesses open during the holiday must participate, according to the Iowa Department of Revenue, and eligible items purchased online, or by mail order or catalog, are also exempt as long as they’re ordered and paid for during the exemption period. This year’s exemption period runs from 12:01 a.m. Friday, Aug. 2, until midnight Saturday Aug. 3. Sunday, Aug. 4 is not included in the tax-exempt period.

Find the state’s list of sales tax-exempt items — and items that are taxable — here.

Some of the tax-free items include clothing and shoes under $100 (Such as underclothes, sneakers, coats and jackets, belts, jeans, diapers, work uniforms, costumes and bridal apparel).

The exemption does not apply to any item that costs $100 or more. It also doesn’t apply to backpacks, garment bags, watches and jewelry, umbrellas, clothing repairs or alterations, sporting equipment or other special clothing or footwear for athletics. Items purchased online are included in the tax exemption as long as they fit the normal requirements. As long as items are ordered and paid for during the holiday, it does not matter if delivery isn’t complete until after the holiday has concluded.

Image from https://itrfoundation.org/iowas-sales-tax-free-weekend-is-coming-up-but-is-it-good-policy/

The National Retail Federation estimates families will spend an average of $874 this year on back-to-school items. That’s slightly down from last year, but still the second-highest average recorded. Of that spending, families are expected to shell out more than $300 for electronics this year and more than $400 on clothing and accessories. Another $142 is expected to go toward school supplies.

Carol Ehlers, a human sciences specialist in family well-being with Iowa State University Extension and Outreach, said families need to plan ahead and budget for back-to-school purchases. In a news release, Ehlers provided these tips to Iowans ahead of the tax-free holiday weekend:

• Plan ahead: Plan for major clothing and shoe purchases before you go shopping during Iowa’s sales tax-free weekend event.
• Set a budget and stick to it: Be careful not to overspend just because the tax-free weekend is occurring.
• Compare prices: Use the sales circulars from your newspaper to compare prices on the items you wish to buy. Visit websites of several stores where you usually shop. If you tend to buy your kids’ jeans or sneakers at national retail outlets, visit their websites during tax-free weekend to find out which store is offering the better deal.
• Know the rules and expect a busy shopping weekend: The Iowa Legislature approved the tax holiday in 2000 to help boost the economy and give consumers a break. Previous tax-free holidays have shown to pump up sales for everyone from big-box retailers to mom-and-pop shops. Some merchants report double-digit increases in sales, compared to a typical August weekend.