Iowa and Illinois sales tax holiday begins Aug. 5

Published: Aug. 4, 2022 at 4:28 PM CDT
Email This Link
Share on Pinterest
Share on LinkedIn

QUAD CITIES, Iowa/Ill. (KWQC) - Since 2000, the State of Iowa has designated the first Friday and Saturday of August as a tax-free holiday.

Sales tax on qualifying clothing and footwear that costs less than $100 is waived.

Now, the State of Illinois has announced a sales tax holiday for this first time in more than a decade, reducing the sales tax by 5% for 10 days.

Ritzy Reruns has been selling quality new and gently used clothing on West Locust Street in Davenport for the last 22 years.

Tax-free weekend is one of the busiest weekends for the small business.

“I think it’s a really anticipated event,” said Sherry Hopkins.

Owner Sherry Hopkins marks everything down 50% on the first Friday and Saturday in August to coincide with not only Mississippi Valley Fair week, but the Iowa sales tax holiday.

“People do wait for it as far as back to school. And they know that are prices are already pretty good. And then with half off and no sales tax it’s like 50 percent off. You know, even though, jeans they can still use for fall. So there’s a lot of things, there’s something here for everybody,” said Hopkins.

In Iowa, all clothing and footwear items less than 100 dollars are eligible for the waived sales tax.

Across the river in Illinois, Selective Seconds consignment shop in Moline is preparing for a busy weekend with the announcement of Illinois’ 10-day sales tax holiday from August 5 through August 14.

The sales tax on school supplies and qualifying clothing and footwear will drop from 6.25% to 1.25% on items less than $125.

“I think it’ll be good for families and local shops as well. It might give families and customers and incentive to go out and shop, especially at local places this weekend,” said Alyssa Sierra, sales representative at Selective Seconds.

A national survey estimates parents spend an average of $661 per student on back to school shopping.

“In addition to the sales tax holiday weekend, we’re having our own additional sale on top of that, so we’re hoping to see a very large increase in sales,” said Sierra.

With inflation at an all-time high, the reduced sales tax in Illinois is part of the state’s $1.8 billion Family Relief Plan.

“Our parents shouldn’t have to choose between buying essential school supplies for their children and putting food on the kitchen table. Our teachers shouldn’t have to break the bank to do right by their students, the students that they nurture day in and day out,” said Illinois Gov. J.B. Pritzker.

Gov. Pritzker also announced a break for Illinois teachers.

All educators in Illinois can get an income tax credit for all school supplies up to $250 dollars this year, and up to $500 in 2023.

Copyright 2022 KWQC. All rights reserved.