IOWA – The State of Iowa will hold a two-day-long sales tax holiday during which consumers can purchase clothing without paying sales tax. The holiday will begin on Friday, Aug. 7, 2026, at 12:01 a.m., and last until midnight on Saturday, Aug. 8, 2026.

No sales tax or local option sales tax will be collected on sales of an article of clothing or footwear having a selling price less than $100. The exemption applies to each article priced under $100 regardless of how many items are sold on the same invoice to a customer.

“Iowans should take advantage of this opportunity to save money and support local small businesses,” National Federation of Independent Business (NFIB) Iowa State Director Cody Carlson said. “Main Street businesses are the backbone of our economy. Shopping at your favorite local shops is a great way to invest in our communities, supporting growth and jobs.”

Eligible clothing items will be any article of wearing apparel and typical footwear intended to be worn on or about the human body. This does not include watches, watchbands, jewelry, umbrellas, handkerchiefs, sporting equipment, skis, swim fins, roller blades, skates, and any special clothing or footwear designed primarily for athletic activity or protective use and not usually considered appropriate for everyday wear. For a full list of what is included, visit: https://revenue.iowa.gov/media/112/download.

The National Federation of Independent Business (NFIB) is nonprofit, nonpartisan, and member-driven. Since its founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.