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 reduce—not eliminate—the state portion of tax on qualifying clothing, footwear and school supplies through Aug. 16.
Davenport, IA — Back-to-school shoppers in the Quad Cities will find different tax savings depending on which side of the Mississippi River they shop beginning Friday, Aug. 7.
Iowa’s annual sales tax holiday lasts two days, from 12:01 a.m. Friday through midnight Saturday, Aug. 8. During that period, qualifying clothing and footwear priced below $100 per item are exempt from both state sales tax and local option sales tax.
Illinois’ holiday runs for 10 days, from Aug. 7 through Aug. 16, but it is not a fully tax-free period. The state portion of the sales tax drops from 6.25% to 1.25% on qualifying items, while local sales taxes still apply.
Iowa: Two days of tax-free clothing and footwear
Iowa shoppers can buy eligible clothing and footwear for less than $100 per item without paying sales tax. The price limit applies to each individual item, not to the total purchase.
For example, several qualifying shirts or pairs of shoes can be purchased tax-free if each one costs less than $100. An item priced at exactly $100 or more does not qualify, and the tax applies to its full price.
Eligible items generally include everyday clothing and footwear, such as shirts, pants, dresses, coats, socks, shoes and sandals.
The Iowa exemption does not cover accessories or specialty items, including jewelry, watches, umbrellas, sporting equipment, skates, swim fins, roller blades, protective gear, or athletic clothing and footwear designed primarily for sports.
Items normally sold as a single unit cannot be separated to meet the price limit. A $120 pair of shoes, for example, cannot be treated as two $60 items.
Online purchases can qualify when the item is ordered and paid for during the holiday, even if delivery happens later.
Illinois: Reduced state tax through Aug. 16
Illinois shoppers will pay a lower tax rate on qualifying purchases for 10 days, but the final rate depends on the local taxes charged where the item is sold.
The state will reduce its portion of the tax by five percentage points, from 6.25% to 1.25%. County, city and other local taxes are not part of the holiday, so shoppers in Moline, Rock Island and other Illinois communities will still see some sales tax on their receipts.
The reduced Illinois rate applies to qualifying clothing and footwear priced below $125 per item. It also applies to certain school supplies used by students in the course of study, with no $125 price cap for eligible school supplies.
Qualifying school supplies include items such as backpacks, binders, calculators, notebooks, paper, pencils, pens, crayons, markers, scissors, rulers, folders and lunch boxes.
Accessories—including handbags, wallets, jewelry, watches, umbrellas and nonprescription sunglasses—do not qualify. Sports and recreational equipment, protective equipment, and specialty athletic shoes such as cleats and ballet shoes are also excluded.
Retailers must use the discounted rate on qualifying items during the Illinois holiday.
Where Quad Cities shoppers can save
Families shopping in Davenport, Bettendorf and other Iowa communities can receive the full state and local tax exemption on qualifying clothing and footwear under $100 during the two-day holiday.
Across the river, shoppers in Moline, Rock Island and East Moline have a longer shopping window and can include qualifying school supplies, but they will still pay applicable local sales taxes.
The different rules mean a purchase that qualifies in one state may not receive the same tax treatment in the other. Iowa has the lower per-item cap and does not include school supplies, while Illinois has a higher clothing and footwear limit and covers qualifying school supplies at a reduced tax rate.
Related: How Iowa families can apply for free and reduced-price school meals for 2026-27
Before paying, shoppers can confirm whether a specific item qualifies through the Iowa Department of Revenue’s sales tax holiday guidance or the Illinois Department of Revenue’s rules for the Aug. 7–16 holiday.
Stay informed with stories that matter. Visit HolaAmericaNews.com for the latest news, culture and community updates.
Facebook Comments
