By Hola America
Iowa will waive state and local sales tax on qualifying clothing and footwear under $100 on Aug. 7 and 8. Illinois will lower its state tax rate on qualifying clothing, footwear and school supplies through Aug. 16.
Davenport, IA — Quad Cities families can save on back-to-school purchases beginning Friday, Aug. 7. However, the savings depend on which side of the Mississippi River they shop.
Iowa’s annual sales tax holiday lasts two days. It begins at 12:01 a.m. Friday and ends at midnight Saturday, Aug. 8.
During that time, Iowa will not charge state or local sales tax on qualifying clothing and footwear priced below $100 per item.
Illinois will offer a 10-day tax break from Aug. 7 through Aug. 16. It will not eliminate sales tax. Instead, the state rate will drop from 6.25% to 1.25% on qualifying items. Local sales taxes will still apply.
Iowa offers two days of tax-free clothing and footwear
In Iowa, the price limit applies to each item. It does not apply to the total purchase.
A family can buy several qualifying shirts or pairs of shoes tax-free if each item costs less than $100. An item priced at $100 or more does not qualify. The store must charge tax on its full price.
Eligible items include everyday clothing and footwear. Examples include shirts, pants, dresses, coats, socks, shoes and sandals.
Iowa excludes accessories and specialty items. Those exclusions include jewelry, watches, umbrellas, sports equipment, skates, swim fins, roller blades and protective gear.
The holiday also excludes clothing or footwear made mainly for sports. Cleats and similar athletic shoes do not qualify.
Stores must sell items normally sold as one unit that way. For example, a $120 pair of shoes cannot count as two $60 purchases.
Online purchases can qualify. Shoppers must order and pay for the eligible item during the holiday, even if it arrives later.
Illinois lowers its state tax rate through Aug. 16
Illinois shoppers will have more time to make qualifying purchases. Still, they will pay local sales taxes based on where they shop.
The state will reduce its sales tax by five percentage points, from 6.25% to 1.25%. Local taxes from counties, cities and other jurisdictions remain in effect.
As a result, shoppers in Moline, Rock Island and East Moline will see a lower tax rate on qualifying purchases. They will not receive a full tax exemption.
The reduced state rate applies to qualifying clothing and footwear priced below $125 per item. It also applies to qualifying school supplies used by students.
Eligible school supplies do not have a $125 price cap. They can include backpacks, binders, calculators, notebooks, paper, pencils, pens, crayons, markers, scissors, rulers, folders and lunch boxes.
Illinois excludes accessories such as handbags, wallets, jewelry, watches, umbrellas and nonprescription sunglasses. It also excludes sports and recreation equipment, protective gear, cleats and ballet shoes.
Retailers must apply the lower state rate to qualifying items during the holiday.
Where Quad Cities shoppers can save
Families shopping in Davenport, Bettendorf and other Iowa communities can avoid both state and local sales tax on qualifying clothing and footwear under $100. They have only two days to use the exemption.
Shoppers in Moline, Rock Island and East Moline have through Aug. 16 to use Illinois’ reduced state rate. Illinois also includes qualifying school supplies and sets a higher price limit for clothing and footwear.
The tradeoff is simple. Iowa offers a full tax exemption for a shorter period. Illinois offers a longer window, but local taxes still apply.
Before paying, check each item’s price and category. A purchase that qualifies in Iowa may receive different tax treatment in Illinois.
Related: How Iowa families can apply for free and reduced-price school meals for 2026-27
Shoppers can review the Iowa Department of Revenue’s sales tax holiday guidance and Illinois’ holiday rules before making a purchase.
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