By Hola America
Iowa has eliminated state and local sales taxes through Saturday on qualifying clothing and footwear priced below $100. Illinois has reduced the tax rate by five percentage points through Aug. 16 and includes eligible school supplies.
Updated Friday, Aug. 7, 2026.
DAVENPORT, IA — Back-to-school tax breaks are now underway in Iowa and Illinois, giving Quad Cities families two different opportunities to save on clothing, shoes and classroom supplies.
The amount shoppers save and the purchases that qualify depend on which side of the Mississippi River they visit.
Iowa has completely eliminated state and local sales taxes on qualifying clothing and footwear priced below $100 per item. The exemption is available only Friday and Saturday.
Illinois is offering a longer, 10-day period through Aug. 16. Instead of eliminating the tax, the state has reduced the total rate charged on qualifying purchases by five percentage points.
Illinois also includes eligible school supplies, while Iowa’s exemption does not.
Iowa waives sales taxes through Saturday
Iowa’s annual sales tax holiday began at 12:01 a.m. Friday, Aug. 7, and continues through midnight Saturday, Aug. 8. Sunday is not included.
During those two days, stores will not collect state or local-option sales tax on qualifying clothing and footwear priced below $100 per item.
The limit applies to each individual product, not the total purchase. A shopper can buy several qualifying items without paying tax as long as each one costs less than $100.
An item priced at exactly $100 does not qualify, and the store must collect tax on its full price.
For example, a $99 coat can qualify for the exemption, while a $100 coat remains fully taxable.
Businesses that are open during the holiday are required to participate. The exemption is not limited to selected stores or special promotions.
Clothing and footwear below $100 qualify in Iowa
Eligible products generally include clothing and footwear intended for everyday use. Examples include:
- Shirts and blouses
- Pants, shorts, skirts and dresses
- Coats and jackets
- Underwear and socks
- Shoes, sandals and boots intended for everyday wear
- School uniforms
Accessories, sporting equipment and specialized protective clothing do not qualify. Taxable products include jewelry, watches, umbrellas, skates, swim fins, roller blades and protective gear.
Cleated or spiked shoes and other footwear designed primarily for athletic activity are also excluded. Sneakers commonly worn as everyday footwear can qualify.
School supplies remain taxable in Iowa. The holiday does not cover backpacks, notebooks, pencils, calculators, computers or other classroom materials unless a product independently qualifies as clothing or footwear.
Items normally sold together cannot be divided to meet the price limit. A pair of shoes priced at $120 cannot be treated as two separate $60 products.
Online Iowa orders can receive the exemption
Eligible products purchased online, by mail or through a catalog can qualify for Iowa’s exemption.
The shopper must order and pay for the item during the two-day holiday. Delivery can occur after Aug. 8.
Store-issued coupons and discounts can reduce an item’s selling price enough to qualify. For example, a shirt marked down from $110 to $99 can receive the exemption.
A manufacturer’s coupon does not reduce the price used to determine eligibility. An item priced at $105 will remain taxable even when a $10 manufacturer’s coupon lowers the amount paid by the shopper to $95.
Illinois cuts the tax rate through Aug. 16
Illinois’ back-to-school sales tax holiday began Aug. 7 and continues through the close of business Aug. 16.
The state portion of the sales tax has decreased from 6.25% to 1.25% on qualifying purchases. Local taxes imposed by cities, counties and other jurisdictions remain in effect.
In practical terms, the total rate charged by a store decreases by five percentage points. A retailer with a regular rate of 9.75%, for example, will charge 4.75% on qualifying purchases during the holiday.
Shoppers in Moline, Rock Island, East Moline and other Illinois communities will therefore receive a substantial reduction, but not a complete exemption.
Retailers are required to apply the reduced rate to qualifying purchases during the 10-day period.
Illinois sets a $125 limit for clothing and footwear
The Illinois reduction applies to qualifying clothing and footwear priced below $125 per item.
An eligible product priced at $124 can receive the lower rate. An item priced at exactly $125 does not qualify.
Eligible purchases include:
- Shirts, pants, shorts, skirts and dresses
- Coats, jackets and rainwear
- School uniforms
- Underwear, socks and hosiery
- Shoes, sneakers, sandals and boots
- Bathing suits and swim caps
- Hats, gloves, scarves and belts
Illinois excludes accessories such as handbags, wallets, jewelry, watches, umbrellas and nonprescription sunglasses.
Sports and recreation equipment, protective gear, ballet and tap shoes, cleated or spiked athletic shoes, skates, ski boots, waders and swim fins also remain fully taxable.
Backpacks, notebooks and calculators receive the Illinois reduction
Unlike Iowa, Illinois applies its reduced rate to certain school supplies used by students in the course of study.
Qualifying school supplies are not subject to the $125 price limit. They include:
- Backpacks and book bags
- Binders and folders
- Calculators
- Composition books and notebooks
- Notebook, graph and construction paper
- Pencils, pens, crayons and markers
- Erasers and pencil sharpeners
- Glue and tape
- Scissors, rulers, protractors and compasses
- Lunch boxes
Computers, printers, flash drives, printer ink, textbooks, reference books, art supplies, cameras and cellphones do not qualify for the reduced rate.
A back-ordered eligible item can receive the lower Illinois rate when the shopper pays for it in full during the holiday, even if delivery occurs after Aug. 16.
Iowa offers deeper savings; Illinois allows more time
Iowa offers the larger immediate tax reduction because qualifying purchases are completely exempt from state and local sales taxes. Shoppers, however, have only Friday and Saturday to use the exemption.
Illinois gives families through Aug. 16 and includes qualifying school supplies. It also sets a higher price limit for clothing and footwear, but shoppers will continue paying the remaining state and local taxes.
- Iowa: Complete sales tax exemption on qualifying clothing and footwear priced below $100 through Saturday, Aug. 8.
- Illinois: Five-percentage-point tax reduction on qualifying clothing and footwear below $125 and eligible school supplies through Aug. 16.
Before paying, shoppers should check the price and category of each product. A purchase that qualifies in one state may receive different tax treatment across the river.
Related: How Iowa families can apply for free and reduced-price school meals for 2026-27
Complete eligibility rules are available through the Iowa Department of Revenue’s sales tax holiday guidance and the Illinois Department of Revenue’s 2026 tax holiday bulletin.
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