Total Range for 2025
| Base state sales tax rate | 6% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-3% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 6%-9% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | 20th of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Idaho is 6%, but since the local rates range from 0-3% the total sales tax range is 6-9%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Buying a $120 jacket in Boise (7% sales tax):
- Sales tax: $120 x 7% = $8.40
- Total price: $120 + $8.40 = $128.40
Nexus: Why do you need to collect sales tax in Idaho?
If you’re selling goods and services in Idaho then sales tax might apply! To determine your obligation, we need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Idaho, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Idaho exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
Services
Generally, services are not taxable in Idaho. This includes things like consulting, repairs, and cleaning.
Exceptions: There are some services that are taxable, such as:
- Services directly related to the production of tangible personal property
- Leasing tangible personal property
- Admissions tickets
- Hotel and motel stays
Goods
Most tangible personal property you sell in Idaho will be subject to the state’s 6% sales tax.
Exemptions: Some common exemptions include:
- Groceries (excluding prepared food)
- Prescription drugs and medical equipment
- Educational materials (textbooks, etc.)
- Certain agricultural products
Freight/Shipping
- Freight and shipping charges are generally not directly taxable.
- However, if the shipping charges are included in the total price of the goods being shipped, then the entire price (including shipping) might be subject to sales tax.
Clothing
- In general the sales of clothes is taxable in Idaho
- However certain clothing sales are exempt, such as sales to nonprofit organizations
Electronics
- Electronics are subject to sales tax in Idaho
SaaS
SaaS can be a tricky area in Idaho. Here’s what you need to consider:
- Generally, the service aspect of SaaS is not taxable.
- However, there might be a taxable component if your SaaS offering includes pre-written software that is delivered electronically.
Digital Products
- Digital music, books, videos, and games are taxable if the buyer has a permanent right to use them, regardless of how they are delivered or accessed.
- However, leases or rentals of these digital products and digital subscriptions are not taxable. Plus, electronic photographs are exempt from tax.
Software
- Software is generally taxable in Adaho. This includes both pre-written (canned) software and custom software, regardless of whether it is delivered electronically or on physical media.
- However, certain software-related services and digital products may be subject to different tax rule
How to register for sales tax in Idaho
Getting your business up and running in Idaho requires a few key steps related to permits and registrations. Here’s a simplified guide:
- Apply for Tax Permits: (all at once!)
- Idaho’s convenient Idaho Business Registration (IBR) process allows you to register for multiple tax permits in a single application. This includes the seller’s permit for sales and use tax.
- Gather some information beforehand:
- Your EIN (if you have one)
- Social Security numbers or EINs of all owners, partners, and officers
- Business addresses (physical and mailing)
- Business start date in Idaho and incorporation dates (if applicable)
- Basic employee details (expected headcount, first paycheck date, etc.)
- Bonus: Processing is fast! You can expect your permit(s) within 10 business days of submitting your online application.
How to collect sales tax in Idaho
- Apply the Correct Sales Tax Rate:
- The base sales tax rate in Idaho is 6%. However, some localities add additional local option taxes. You’ll need to research the specific combined rate for the location where your customer is based.
- Collect the Tax During Sales:
- Add the appropriate sales tax to the total price of taxable goods or services sold. Most Point-of-Sale (POS) systems can automate this calculation.
- Keep Records:
- Maintain accurate records of all sales transactions, including the amount of sales tax collected.
How to get a sales tax permit/license in Idaho?
To obtain a sales tax permit in Idaho, start by registering your business with the Idaho State Tax Commission. Gather necessary information, including your business name, address, contact details, Employer Identification Number (EIN) or Social Security Number (SSN), and details about the business owners.
Apply for the permit online through the Idaho State Tax Commission’s Taxpayer Services Portal by completing the online application for a sales tax permit. Once approved, you will receive your sales tax permit, which authorizes you to collect and remit sales tax on taxable sales in Idaho.
When are Idaho’s sales tax returns due?
Idaho’s sales tax return due dates depend on how often you are required to file them. Here’s a breakdown:
- Monthly filers: Due by the 20th day of the month following the reporting period.
- Quarterly filers: Due by the 20th day of the month following the quarter.
- Annual filers: Due by January 20th of the following year.
Important note: If the due date falls on a weekend or holiday, the return is due on the next business day.
Is anyone exempt from sales tax in Idaho?
In Idaho, there are two main categories of exemptions for sales tax:
- Exempt Products and Services: Certain types of goods and services are not subject to sales tax, regardless of who purchases them. Here are some common examples:
- Groceries (excluding prepared food)
- Prescription drugs and medical equipment
- Educational materials (textbooks, etc.)
- Certain agricultural products
- Most services (except for a few specific ones like admissions or those directly related to producing tangible personal property)
- Exempt Customers: Some types of customers are exempt from paying sales tax, even on taxable goods. However, they typically need to provide documentation to the seller to claim the exemption. Here are some examples:
- Government agencies: Federal, state, and local governments don’t pay sales tax on purchases they make for official use.
- Certain non-profit organizations: Qualifying non-profits may be exempt from sales tax on purchases used exclusively for their charitable purposes.
- Merchants purchasing for resale: Businesses that buy goods to resell them (without substantial modification) can obtain a resale certificate to avoid paying sales tax on their purchases.
Do I Have to Collect Sales Tax from Idaho Customers if I Sell on Amazon, Walmart, eBay, or Etsy?
No. Idaho’s marketplace facilitator law requires platforms like Etsy and Amazon to collect sales tax on behalf of third-party sellers. However, smaller retailers who do not have a physical presence in Idaho only need to collect sales tax when the combined total of their own sales and their third-party sales in the state exceed $100,000.
