Idaho has a statewide sales tax of 6%. This 6% tax is collected on retail sales, leases and rentals of goods, and on some services. The tax is paid by the consumer at the point of purchase, and businesses are responsible for collecting the tax and remitting it to the Idaho State Tax Commission.
In addition to the statewide sales tax, some cities and counties in Idaho have local option sales taxes ranging from 0.5% to 3%. These local taxes are collected on the same transactions as the statewide tax and bring the total sales tax up to 9.5% in some areas.
This article provides an overview of Idaho sales tax rates, an online calculator to estimate sales tax, details on taxable and exempt transactions, filing requirements for businesses, and how revenue is used. Key information is included on the following topics:
- Idaho state and local sales tax rates
- Sales tax calculator for Idaho
- Taxable sales in Idaho
- Exemptions from sales tax
- How to collect and file Idaho sales tax
- How Idaho uses sales tax revenue
- Sales tax administration in Idaho
Let’s explore each of these topics in more depth.
Idaho Sales Tax Calculator
You can easily calculate the sales tax due on a purchase in Idaho using an online Idaho sales tax calculator.
Simply enter the total purchase amount, select the city and county where the purchase occurs, and the calculator will provide the amount of sales tax owed.
Idaho Sales Tax Calculator
Idaho Sales Tax Calculator
Here is an example calculation using a $100 purchase in Boise, Ada County:
- Purchase Amount: $100
- State Sales Tax: 6%
- Local Tax for Boise: 1%
- Total Sales Tax: 7%
- Sales Tax Due: $7
These calculators make it easy to estimate the sales tax on purchases in Idaho, ensuring you collect and remit the right amount.
Idaho State and Local Sales Tax Rates
The statewide sales tax rate in Idaho is 6%. This tax is collected by the Idaho State Tax Commission.
In addition to the statewide rate, some local jurisdictions in Idaho have implemented local option sales taxes. These taxes range from 0.5% to 3%, bringing total sales tax up to 9.5% when combined with the statewide rate.
Local option sales taxes in Idaho are collected by the following jurisdictions:
- Counties – 28 out of 44 counties have a local option tax ranging from 0.5% to 3%
- Cities – Around 144 cities have local option sales taxes ranging from 0.5% to 3%
- Auditorium or Community Center Districts – 17 districts impose a local sales tax
- Public Transportation Authorities – 3 authorities collect local sales taxes
To find the total sales tax rate for a location in Idaho, you need to add the 6% state tax plus any applicable local option taxes. The Idaho State Tax Commission provides a sales tax rate lookup tool where you can search any address to find the combined rate.
Key counties with some of the highest total sales tax rates in Idaho include:
- Blaine County – 6% state tax + 1.5% county tax = 7.5% total
- Teton County – 6% state tax + 1.5% county tax = 7.5% total
- Kootenai County – 6% state tax + 1% county tax = 7% total
Some cities with high sales tax rates include:
- Sun Valley – 6% state tax + 3% resort city tax = 9% total
- McCall – 6% state tax + 3% resort city tax = 9% total
- Coeur d’Alene – 6% state tax + 1% city tax = 7% total
Taxable Sales in Idaho
Idaho broadly taxes sales of tangible personal property and certain services. Some major categories of taxable sales in Idaho include:
Retail sales – All sales of tangible goods and merchandise are taxable unless specifically exempted. This includes items like furniture, electronics, jewelry, toys, household goods, tools, appliances, clothing, etc.
Food and drinks – Prepared foods, restaurant meals, and non-alcoholic beverages are subject to Idaho sales tax. Grocery food items are exempt.
Lodging – Hotel rooms and other short-term lodging rentals are taxable.
Vehicle purchases – Sales of automobiles, RVs, motorcycles, boats, and aircraft are taxable.
Alcohol and tobacco – These items are subject to special state taxes in addition to the general sales tax.
Digital goods – Downloads of software, apps, ebooks, music, movies and more are considered taxable in Idaho when sold to an Idaho resident.
Services – Some taxable services include auto repair, pet grooming, dry cleaning, landscaping, and recreation/entertainment services.
These are some of the major categories subject to Idaho sales tax. The full list of taxable goods and services is defined in Idaho sales and use tax rules.
Exemptions from Sales Tax in Idaho
While Idaho has a broad sales tax base, several types of goods and services are exempt. Some common Idaho sales tax exemptions include:
- Food for home consumption – Groceries, meat, produce, bread, milk, and other foods are exempt. Prepared hot foods are taxable.
- Prescription drugs – Prescriptions and over-the-counter drugs are exempt from sales tax.
- Medical items – Products like wheelchairs, crutches, bandages, and medical devices are exempt.
- Utilities – Residential use of electricity, natural gas, water, and other utilities are not taxed.
- Motor vehicle and RV fuel – Gasoline, diesel, and propane for vehicles/RVs is exempt.
- Manufacturing equipment – Machinery used directly in manufacturing is exempt.
- Agricultural products – Farm equipment, feed, seeds, and other ag products are not taxed.
- School textbooks – Textbooks sold through an Idaho school or university bookstore are exempt.
- Wholesale sales – When a retailer buys inventory from a wholesaler, the initial purchase for resale is exempt.
Businesses should carefully document any exempt sales and provide exemption certificates when required. The full list of Idaho sales tax exemptions is available in Rule 068.
How to Collect and File Idaho Sales Tax
Retailers making taxable sales in Idaho must obtain a seller’s permit, collect sales tax from customers, file regular tax returns, and remit the tax to the state.
Obtain a seller’s permit – Retailers making over $4,000 per year in Idaho taxable sales must register for a permit. The permit allows the retailer to make tax-exempt wholesale purchases of inventory.
Charge sales tax at checkout – At the point of sale, retailers need to add the applicable state and local sales tax rate to each taxable transaction. Sales tax should be included on receipts provided to customers. Online sellers must also charge sales tax for Idaho customers based on the delivery address.
File sales tax returns – Retailers must file a sales tax return with the Idaho Tax Commission monthly, quarterly, semi-annually, or annually based on sales volume. All sales, taxable sales, exemptions, and tax due must be reported.
Remit payment – Along with the return, retailers must submit payment for all sales tax collected from customers. Returns and payment can be submitted online or mailed.
Idaho has a 25-day grace period after the close of each reporting period – retailers must file returns and pay tax due within 25 days of the end of the filing period to avoid penalties and interest.
How Idaho Uses Sales Tax Revenue
The Idaho sales tax generates over $2.3 billion in annual revenue for the state. This money supports Idaho’s General Fund, which finances most state government services.
Major areas funded by Idaho sales tax dollars include:
- Education – Over 50% of Idaho’s General Fund goes to K-12 schools, colleges, universities, and other education programs.
- Health and Human Services – Medicaid, Children’s Health Insurance, substance abuse treatment, and other health/human service programs receive significant funding.
- Public Safety – Police, courts, corrections, disaster emergency funds, and other public safety services are financed through the General Fund.
- Natural Resources – Environmental conservation, parks, forestry programs, and wildlife preservation rely on sales tax revenue.
- General Government Operations – Administration of state government programs, payroll for state employees, and maintenance of facilities depend on sales tax dollars.
So while no sales tax revenue is earmarked for any specific purpose, the funds support essential state services for Idaho residents.
Sales Tax Administration in Idaho
The Idaho State Tax Commission administers the state’s sales tax program. The Tax Commission has responsibilities including:
- Publishing sales tax rules and notices
- Registering retailers for seller’s permits
- Providing online filing for returns and payment
- Performing sales tax audits of businesses
- Assisting taxpayers with questions
- Processing sales tax refund requests
- Enforcing compliance through penalties
The Tax Commission offers extensive information for retailers on all aspects of Idaho sales tax on their website. Resources include sales tax guides, industry-specific flyers, educational videos, online workshops, and FAQs.
Taxpayers can create an account on the Tax Commission website to file returns, make payments, and manage their sales tax online. Customer service staff are also available by phone and email to answer questions and help retailers comply.
Conclusion
This covers the key details on Idaho state and local sales taxes. Consumers across the state pay sales tax on purchases of most goods and some services at rates ranging from 6% to 9.5%. Retailers are tasked with collecting tax from customers, filing regular returns, and remitting revenue to the state. The sales tax provides essential funding for state government services and operations in Idaho. With proper administration and compliance, the sales tax will continue generating revenue to support programs benefiting Idaho residents.
