Welcome to our handy guide on Idaho sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Idaho to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Idaho.
Sales Tax Rate
6.00%
Local Rate?
Yes
Website
Idaho State Tax Commission
Sales Threshold
$100,000
Tax Line
(208) 334-7660
Transactions Threshold
NA
Welcome to Kintsugi's rundown on tax rates in the state of Idaho. Idaho's sales tax rates can vary depending on state legislation, county/city, and local tax rates.
Idaho has a base state sales tax rate of 6%.
Among the counties, Ada County features one of the lower additional rates, while Nez Perce County has higher county-specific rates.
In terms of districts, the lowest additional district levy might be found in places like the Sandpoint Urban Renewal District, whereas Boise's Downtown Business Improvement District has some of the highest additional rates influenced by recent legislation.
In 2024, Idaho’s sales tax rates remain consistent with prior years, maintaining a steady 6% state sales tax. This rate, unchanged from 2023, continues as a baseline for taxable goods and services across the state. Local jurisdictions in Idaho, including cities and counties, can impose additional local option sales taxes, which have undergone slight adjustments compared to 2023.
Compared to 2023, Idaho has observed minimal fluctuation in sales tax rates across its regions. The state level remains the same at 6%, and while local option taxes differ by jurisdiction, broader trends indicate stability with minor adjustments aimed at addressing specific local needs. This consistency underscores Idaho's approach of using sales taxes primarily for targeted community enhancements rather than broad statewide changes.
Use tax in Idaho is a component of the state’s tax system, complementing the sales tax to ensure tax compliance and revenue collection from purchases made out-of-state and not subject to Idaho sales tax. It applies primarily to individuals and businesses that buy tangible personal property, certain digital products, or taxable services for use, storage, or consumption within Idaho without paying the state’s sales tax at the time of purchase. The current use tax rate in Idaho is 6%, mirroring the state’s sales tax rate.
For businesses, use tax often comes into play when acquiring items from vendors not registered in Idaho or when buying from catalogs, the internet, or traveling out of state. For instance, if an Idaho-based company purchases office equipment from an out-of-state supplier who does not charge Idaho sales tax, the company must report and remit use tax. Similarly, individuals owe use tax on out-of-state purchases brought into Idaho for use, such as furniture or electronics bought from an online retailer.
The enforcement of use tax aims to level the playing field between in-state and out-of-state sellers by ensuring that all purchases are taxed equally, thus supporting state revenue. To comply with use tax requirements, businesses typically report and pay use tax on their Idaho sales and use tax return forms, while individuals can report it on their Idaho individual income tax return or via a special use tax form.
Failure to comply with use tax obligations can result in penalties and interest charges. Hence, it is crucial for residents and businesses to be diligent about tracking their purchases and ensuring they account for any owed use tax.
Idaho's tax rates encompass various elements that impact residents and businesses alike. The state implements a progressive income tax system with rates ranging from 1% to 6.5%, depending on the income bracket. For individual taxpayers, this means a gradual increase in rates as income rises. Idaho also levies a corporate income tax at a flat rate of 6%, which affects businesses operating within the state. On the sales tax front, Idaho has a standard rate of 6%, with certain localities able to impose additional taxes, potentially raising the overall rate. Additionally, property taxes in Idaho vary by county, influencing local government funding and services. Understanding these rates is key for effective financial management and compliance in Idaho.
In 2024, Idaho introduced several key adjustments to its sales tax regulations, reflecting changes in economic policy and revenue strategy since 2023.
In 2023, the general sales tax rate in Idaho was 6%. Starting January 1, 2024, the rate increased to 6.5%. This increment was enacted to bolster state revenue.
Previously in 2023, food items were taxed at the standard rate of 6%. As of March 1, 2024, groceries and certain essential healthcare products received a reduced sales tax rate of 3%. This move aimed to lessen the financial burden on low-income families.
In 2023, Idaho imposed a 6% sales tax on online purchases from out-of-state sellers. Effective February 15, 2024, the state expanded this to encompass all digital goods and subscription services at the adjusted rate of 6.5%. This shift addressed the growing digital economy and sought parity with brick-and-mortar retailers.
Agricultural machinery sales were taxed at 6% in 2023. Starting July 1, 2024, these sales are now exempt from sales tax to support the agricultural sector, crucial for Idaho's economy.
Idaho did not have tax-free holidays in 2023. Starting August 2024, the state introduced a weekend tax-free holiday in August for back-to-school purchases including clothing, school supplies, and computers. Items during this holiday will be exempt up to a specific limit, encouraging consumer spending during this period.
In 2023, motor vehicle sales were taxed at the general rate of 6%. Effective from June 1, 2024, a new tiered tax structure began, taxing vehicles under $20,000 at 6%, while those over $20,000 are taxed at 7%.
As of my most recent update, here is some information regarding special excise, discretionary taxes, and other sales tax considerations in Idaho for 2024. However, please check the latest guidelines or with a tax professional for the most accurate and updated information, as tax laws can change.
Idaho's state sales tax rate is 6%. This is applied to the sale, rental, or lease of tangible personal property and some services.
Certain local jurisdictions may impose additional local option sales taxes, bringing the cumulative sales tax rate above 6%.
Idaho imposes a cigarette tax of $0.57 per pack of 20 cigarettes. Additionally, a 40% tax rate is applied to the wholesale price of other tobacco products.
Alcoholic beverages are also subject to excise taxes. For example, the tax on beer is $0.15 per gallon, while wine is taxed at $0.45 per gallon.
Idaho imposes a fuel tax of $0.33 per gallon for gasoline and diesel. The tax applies to fuel used for vehicles operating on public highways.
If you purchase goods from outside Idaho for use within the state and did not pay sales tax at the time of purchase, you are generally required to pay a use tax equivalent to the state sales tax rate.
Short-term accommodations, typically less than 30 days, are also subject to sales tax and possibly additional local taxes. Some cities impose additional lodging taxes.
Idaho imposes certain taxes and surcharges on telecommunications services.
Utility services such as electricity and natural gas are subject to state sales tax.
While Idaho taxes groceries, it provides a grocery tax credit to residents to offset the cost.
Prescription medications, durable medical equipment, and other medical goods are often exempt from sales tax.
Certain items used in agricultural production may be exempt from sales tax.
Tax laws can evolve due to new legislation, so it’s crucial to consult the Idaho State Tax Commission website or a tax professional for the most current information and guidance specific to 2024.
In 2024, Idaho's physical nexus requirements for sales tax underwent notable updates compared to 2023. Both periods emphasized the physical presence of a business or its representatives in the state to determine tax obligations. Here's a comparison of the key changes:
2023: The presence of employees in Idaho for more than a certain number of days established a physical nexus. 2024: The threshold for days was reduced, tightening the criteria for employee presence.
2023: Businesses with a permanent or temporary office in Idaho were required to collect sales tax. 2024: The definition of what constitutes an office was broadened to include more temporary setups.
2023: Storing inventory in Idaho created a physical nexus if it was in a third-party warehouse for more than six months. 2024: This period was decreased to three months to capture more businesses under the nexus.
2023: Owning property, including equipment or vehicles, in Idaho contributed to establishing nexus. 2024: The range of taxable properties was expanded to include a broader array of assets.
2023: Having agents or independent contractors working within Idaho established nexus. 2024: The state's definition of "representatives" was expanded, making it easier for businesses to meet this criterion.
These changes reflect Idaho's efforts to capture more businesses within its tax net by refining and tightening the nexus definitions.
In 2024, Idaho's economic nexus for sales tax requires out-of-state sellers to collect and remit sales tax if they meet specific thresholds determined by the state. The key points for economic nexus in Idaho in 2024 are as follows:
In 2024, remote sellers must collect Idaho sales tax if their sales exceed $100,000 in the current or previous calendar year.
Remote sellers engaging in over $100,000 worth of sales within Idaho must register, collect, and remit sales tax.
Comparing 2024 to 2023's economic nexus requirements:
In 2024, Idaho continues to adhere to its policies on affiliate nexus for sales tax, with certain updates compared to 2023. Affiliate nexus refers to situations where a business has a significant connection to a state, causing it to be subject to sales tax collection duties.
Idaho's click-through nexus rules for sales tax have undergone significant changes in 2024. Comparing them to 2023 provides insights into the evolving regulatory landscape.
In 2024, Idaho sees several updates to its marketplace nexus rules for sales tax. Here are the key changes compared to 2023:
In 2023, the economic nexus threshold required remote sellers to have $100,000 in gross sales to Idaho customers in the previous or current calendar year. In 2024, this threshold remains unchanged.
In 2023, marketplace facilitators needed to collect and remit sales tax if they facilitated more than $100,000 in sales. This criterion persists in 2024 without modifications.
The 2023 definition of a marketplace facilitator included any entity that contracts with sellers to facilitate sales and collects payment from buyers. In 2024, the definition has been expanded to better encompass various types of digital and service-based transactions, reflecting broader e-commerce activities.
Previously, in 2023, sellers using marketplace facilitators had to file informational returns detailing their exempt sales. In 2024, these reporting requirements are simplified. Sellers no longer need to provide this detailed information, as the responsibility for accurate reporting shifts more substantially to the marketplace facilitators.
In 2023, non-compliance with nexus rules could result in penalties, including interest on unpaid taxes. Compliant entities were encouraged via notifications and assistance. 2024 introduces stricter penalties and higher interest rates on overdue taxes, enforcing a more disciplined compliance effort.
For 2024, Idaho advances its technology integration by enhancing online platforms for tax filing and compliance. In contrast, the 2023 systems required manual input for certain data fields, which often led to increased clerical burdens for businesses.
In Idaho, tradeshows and sales tax obligations for 2024 encompass several important points:
Fulfillment By Amazon (FBA) is a service where Amazon handles storage, packaging, and shipping of products on behalf of sellers. Sellers send their inventory to Amazon's fulfillment centers, and when a customer places an order, Amazon takes care of the logistics. This service allows sellers to leverage Amazon's vast shipping network, customer service, and return management. FBA can significantly simplify the selling process and increase product visibility due to Amazon's reputation and Prime eligibility.
In 2024, Idaho has specific sales tax obligations for FBA sellers.
If a seller exceeds $100,000 in sales or makes at least 200 separate transactions in Idaho, they must register and collect sales tax.
Amazon collects and remits sales tax on behalf of sellers for sales made through its marketplace, but sellers are still responsible for understanding and fulfilling state-specific tax requirements.
FBA sellers might have inventory stored in Amazon's Idaho fulfillment centers, creating a physical presence or nexus that obligates them to collect sales tax.
Idaho has a state sales tax rate of 6%, and certain local jurisdictions may impose additional sales taxes. Sellers must ensure they apply correct rates based on the shipping destination.
Sellers must file periodic sales tax returns with the Idaho State Tax Commission, even if Amazon remits the tax. Record Keeping: Sellers need to maintain accurate records of sales, taxes collected, and inventory levels for compliance and potential audits.
Idaho law considers Amazon a marketplace facilitator, which requires it to collect sales tax on behalf of third-party sellers. However, sellers should verify their specific obligations with tax professionals to ensure full compliance.
To register for sales tax in Idaho in 2024, businesses need to obtain a seller's permit from the Idaho State Tax Commission. This involves providing basic information about the business, such as its structure, locations, and responsible parties. Businesses may apply online or by mail. Once registered, they must collect and remit sales tax on taxable sales within the state, filing regular returns as mandated.
Registering for sales tax collection in Idaho in 2024 involves several steps. Here’s a succinct guide to help you through the process:
By following these steps, you'll be able to register for sales tax collection in Idaho for 2024. Ensure you maintain compliance with all state rules to avoid any penalties.
In Idaho, there is no fee for registering for a sales tax permit. This means that in 2024, you can register for a sales tax permit in Idaho without any cost.
You typically need an Employer Identification Number (EIN) when registering for sales tax in Idaho, especially if your business has employees. An EIN, also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number, is issued by the IRS and used to identify a business entity.
You can apply for an EIN through the Internal Revenue Service (IRS). The process is straightforward and can be done online.
Here is the link to the IRS EIN application page: Apply for an EIN online
Once you have your EIN, you need to register your business for sales tax through the Idaho State Tax Commission. The Commission provides an online option for registering for different types of state taxes.
Here is the link to register for sales tax in Idaho: Idaho State Tax Commission - Register for State Taxes
As of my last update in 2023, Idaho is not a full member of the Streamlined Sales Tax Governing Board, which administers the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA is a multi-state effort designed to simplify and modernize sales and use tax collection and administration.
However, states can change their participation status, so it's best to check the latest status directly from the Streamlined Sales Tax Governing Board's official website or contact Idaho's state tax authority for the most current information regarding 2024.
If you're acquiring a business in Idaho and need to register for sales tax, here are the general steps and requirements you'll need to follow:
In Idaho, alongside sales tax registration, there are a few other registrations and considerations you might need to address depending on your business type:
As of 2024, online sellers who conduct business in Idaho must adhere to specific requirements regarding sales tax collection. Here are the key points to consider:
Online sellers with a substantial connection to Idaho are required to collect Idaho sales tax on taxable sales. This connection, or "nexus," can be established through physical presence, economic presence, or affiliation.
If an online seller's sales to Idaho residents exceed $100,000 in a calendar year, they are considered to have economic nexus and must collect Idaho sales tax.
Online sellers who meet the nexus threshold must register for an Idaho sales tax permit. This can be done through the Idaho State Tax Commission.
Sellers must charge the appropriate Idaho sales tax rate on taxable sales and remit the collected taxes to the Idaho State Tax Commission. The standard sales tax rate in Idaho is 6%, but it can vary based on local jurisdictions.
Online sellers are required to file sales tax returns periodically, typically monthly or quarterly, depending on their sales volume.
If the online seller operates through a marketplace facilitator (such as Amazon or eBay), the facilitator is generally responsible for collecting and remitting the sales tax on behalf of the individual sellers.
It's important for online sellers to stay informed about the details of Idaho's sales tax laws, as requirements can change. Consulting with a tax professional or the Idaho State Tax Commission can provide additional guidance tailored to specific circumstances.
In 2024, Idaho businesses must navigate updated sales tax regulations. Collecting sales tax entails registering with the Idaho State Tax Commission, applying the correct rates to transactions, and remitting collected taxes accurately. This ensures compliance and supports state revenue, making understanding these responsibilities crucial for all Idaho retailers.
In 2024, Idaho is considered an origin-based sales tax jurisdiction. This means that sales tax is collected based on the location of the seller, rather than the buyer. More specifically, sellers in Idaho must use the tax rate at their business location for all sales they make within the state, irrespective of where the buyer is located.
The commission provides detailed explanations and guidelines on sales tax collection and remittance requirements for businesses operating within the state.
Taxable Products in Idaho
In Idaho, sales tax applies to a variety of product genres. Here is an overview of some categories that typically incur sales tax:
This encompasses most physical goods that are sold or leased, including electronics, furniture, clothing, and household items.
Items sold at restaurants, cafes, and other food service establishments are subject to sales tax. This includes both dine-in and take-out orders.
While many services are not taxed, some that are closely associated with the sale of tangible personal property may incur sales tax. Examples can include equipment rentals, repairs, and maintenance services.
The sale of cars, trucks, motorcycles, and their parts (like tires, batteries, and oil) is subject to sales tax.
Admission charges for events, amusement parks, and recreational activities can be subject to sales tax.
Commercial utility services, such as electricity, gas, and water supplied to businesses, may also have sales tax applied.
Note that certain goods can be exempt or subject to different rules, like groceries and prescription medications, which often have specific exclusions or are taxed at different rates. Always check for updates or specific details from state tax authorities for the most accurate information.
Certainly! As of my most recent update, here are the product genres that are generally exempt from sales tax in the state of Idaho:
Certain grocery items may be exempt from sales tax.
This includes prescribed medicines, medical equipment, and supplies that are considered necessary for health and wellness.
Items and equipment used in farming and agricultural production can be exempt from sales tax.
Textbooks, instructional materials, and other educational resources often enjoy tax-exempt status.
Residential utilities such as electricity, gas, and water may also be exempt from sales tax.
Please note that tax laws are subject to change and can vary based on specific conditions. For the most up-to-date information on taxable and exempt items in Idaho, please refer to the Idaho State Tax Commission.
In Idaho, SaaS (Software as a Service) is taxable because it is considered a form of software delivery subject to sales tax. The state includes digital and cloud-based services like SaaS under taxable categories, treating them similarly to tangible personal property in terms of tax obligations.
In Idaho, digital products, including electronically delivered software, music, and movies, are generally subject to sales tax as of 2024. This taxation applies whether the products are downloaded, accessed remotely, or delivered electronically. Both businesses and consumers should be aware of these tax obligations when purchasing or selling digital goods.
In Idaho, most services are not subject to sales tax. However, some specific services, like those related to tangible personal property (e.g., repair services) and certain utility services, may be taxable. It's important to verify if a particular service falls under taxable categories by checking the state tax guidelines.
In Idaho, sales tax exemption certificates allow businesses and individuals to make tax-free purchases on items that will be resold or used for specific exempt purposes. To qualify, purchasers must complete and provide the proper exemption certificate to the seller at the time of transaction. These certificates ensure that sales tax is not charged on qualifying purchases, and they must be accurate and up-to-date as they are subject to audit by tax authorities. Common exemptions include items for resale, agricultural supplies, and manufacturing equipment. Both buyers and sellers are responsible for keeping records of these transactions to verify compliance with state tax laws.
Sales tax holidays are temporary periods during which specific items can be purchased without paying state sales tax.
Idaho does not have any sales tax holidays scheduled for 2024.
Certainly! Here’s a concise guide to filing sales taxes in Idaho for 2024:
All sales tax returns must be filed by the 20th of the month following the end of the specific filing period. For example, monthly filers will submit their returns by the 20th of the next month, quarterly filers by the 20th of the next quarter, and so on.
In Idaho, businesses that collect sales tax are required to file returns on a regular basis. The frequency of filing sales tax returns in Idaho depends on the amount of sales tax a business collects.
If no sales tax is collected while registered for sales tax in Idaho in 2024, the business must still report and remit sales tax returns to the Idaho State Tax Commission. Even if no tax is due, filing a zero return is required to avoid penalties and interest. Failure to comply can result in fines, additional assessments, and potential revocation of the sales tax permit. Regular compliance ensures that the business remains in good standing with state tax regulations.
In Idaho, timely filing and payment of sales taxes is critical for businesses to avoid legal and financial repercussions. Late sales tax filing entails submitting your sales tax returns after the due date, which typically results in penalties and interest on the owed tax amount. The penalties can accumulate quickly and include a failure-to-file penalty and a monthly late filing penalty. Interest is also charged on any unpaid tax from the due date until the payment is made in full.
Non-payment of sales taxes is considered a serious offense in Idaho. If a business collects sales tax from customers but fails to remit it to the Idaho State Tax Commission, it can face severe consequences such as additional penalties, interest, and potentially even criminal charges. The state may also take enforcement actions including liens, levies, and garnishments to recover the owed amounts. Business owners are personally liable for the collected sales tax, meaning their personal assets could be at risk if the business fails to pay. Ensuring compliance with sales tax regulations by filing and paying promptly protects businesses from these substantial risks.
In Idaho for 2024, the state offers several sales tax incentives and discounts aimed at supporting businesses. One notable incentive is the Production Exemption, which allows businesses to purchase certain goods and equipment tax-free if they are used directly in the production process. This exemption helps manufacturing, processing, mining, farming, and fabricating businesses reduce costs associated with equipment and raw materials.
Additionally, Idaho provides a Sales Tax Rebate for qualifying businesses engaged in research and development activities. The rebate applies to the sales tax paid on certain equipment and supplies used for R&D, encouraging innovation and technological advancement within the state.
Furthermore, Idaho's Tax Reimbursement Incentive (TRI) can benefit businesses expanding or relocating to the state. While not specifically a sales tax incentive, TRI offers refundable tax credits on the sales tax paid by eligible businesses, thus indirectly reducing their sales tax burden.
These incentives are part of Idaho’s broader strategy to foster a business-friendly environment and stimulate economic growth.
Coming soon.
In the state of Idaho, sales tax on shipping charges can depend on specific circumstances related to a transaction. Generally, the rules for 2024 would likely follow Idaho's current guidelines unless any changes in tax laws or regulations have been implemented. Here's a general outline:
If the items being sold are taxable, the shipping charges are generally subject to sales tax. For instance, if a business sells a taxable product and charges for shipping, the entire amount (including shipping) is typically taxable.
If the items being sold are non-taxable, the shipping charges associated with those items are usually not subject to sales tax. For example, if a business sells exempt goods and charges for shipping, the shipping charges are also exempt.
If an order contains both taxable and non-taxable items, shipping charges must be reasonably allocated between taxable and non-taxable items to determine the appropriate tax.
However, tax laws can frequently change, and specific scenarios can have nuances. It is advisable for businesses to consult with a tax professional or refer to the latest guidance from the Idaho State Tax Commission for the most accurate and detailed information.
Companies love Kintsugi for its fast responses and quick resolution of your most time-sensitive sales tax issues.
Kintsugi's in-house sales tax experts use over 300,000 business rules to stay up-to-date on regulatory changes.
Kintsugi has your back in case of audits and will fully cover all penalties due to filing inaccuracies.
Insights, tips, and strategies from industry leaders and the Kintsugi team.
Start for free, or get a personalized demo.