Ultimate Idaho Sales Tax Guide

Idaho’s sales tax system might seem overwhelming with different local option tax rates and credits.

In this tax guide, we’ll cover the essentials, from calculating sales tax to understanding exemptions and use tax regulations. 

We’ll also introduce a trusted solution to simplify your sales tax filing process and ensure compliance in Idaho and across the United States.

Idaho Sales Tax Rate Range 2024

Idaho has a state-level sales tax of 6%.  

Some Idaho counties and cities impose an additional local sales tax called a “local option tax” (LOT). For example, the City of Sun Valley charges a 3% local option tax, meaning that most retail sales in the city will be taxed at 9%.

Want to know the tax rates for other states? Just use our sales tax calculation service!

Collecting Idaho Sales Tax from Customers

Let’s explore how you can collect Idaho sales tax from customers.

Do I Have to Collect Idaho Sales Tax from Customers?

If you’re a retailer located in Idaho or if you have sales tax nexus in Idaho, you must collect sales tax on taxable transactions in the state.

What Creates a Sales Tax Nexus in Idaho?

You have sales tax nexus in Idaho if you meet any of the following conditions:

• Economic nexus: Out-of-state businesses whose sales in Idaho exceed $100,000 in the current or previous calendar year.
• Physical nexus: Businesses that have an office, warehouse, or storage space temporarily or permanently in Idaho. 
• Services: Businesses that offer servicing of tangible personal property in Idaho. 
• Employees: Businesses with a salesman, agent, or representative who lives or comes to Idaho to sell, deliver, install, or take orders.

Learn more about the sales tax nexus and when you’re required to collect sales tax.

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.

Taxable Products in Idaho

Idaho taxes almost all tangible personal property. The state also taxes a few services, like accommodations. 

Let’s take a closer look at what items are subject to taxation in Idaho.

Are Groceries Taxable in Idaho? 

Yes, groceries are taxed in Idaho. However, the state offers a grocery tax credit to offset the sales tax on groceries. There are restrictions on when the credit can apply but, in general, the grocery tax credit averages around $120 per person.

Is Clothing Taxable in Idaho?

Yes, clothing is subject to sales tax in Idaho.

Are Digital Products Taxable in Idaho?

Yes, digital products are taxable in Idaho. 

Is Software-as-a-Service (SaaS) Taxable in Idaho?

SaaS is not considered tangible personal property in Idaho and is, therefore, not taxable. 

Are Services Taxable in Idaho?

Most services are taxable in Idaho. Some exemptions are:

• Renting hotel or motel rooms for longer than 30 days
• Renting lockers at amusement parks, gyms, and airports
• Boat dock rentals
• Telephone tolls and utility charges
• Transit services, including taxicab fares, bus tolls, airplane tickets on chartered or scheduled flights

Tax-Exempt Items

Here are some items that have an Idaho sales tax exemption:

• Meat provided for custom meat processing or meat packing services.
• Equipment used during the farming or ranching process.
• Food purchases made with Women, Infants and Children (WIC) and Supplemental Nutrition Assistance Program (SNAP) benefits.
• Products sold at a home yard sale during a weekend (three days).
• Medical supplies and prescriptions, such as hypodermic syringes, hearing aids, and prosthetic devices, purchased under a prescription or work order of a practitioner.

How to Register for an Idaho Sales Tax Permit

Before you apply for a seller's permit, you must first register your business with the State of Idaho. You can then apply for a seller’s permit on the Idaho Business Registration System website or mail Form IBR-1. 

Learn how to register for a sales tax or seller's permit in every US state.

Do I Need an Idaho Seller's Permit if I Only Sell Temporarily in the State?

You should get a temporary seller’s permit even if you make infrequent retail sales in Idaho.

There are two types of temporary sales tax permits: 

• Permits for selling at all Idaho events for up to 90 days.
• Permits for selling at one specific event, which can last up to 90 days.

How to Collect Sales Tax in Idaho

Idaho is a “destination-based” sales tax sourcing state. So when you make a taxable retail sale to any address in Idaho from within or outside the state, you should charge the sales tax rate at the buyer’s ship-to address. 

Find out more about sales tax on shipping in every US state.

Should You Collect Sales Tax on Shipping Charges in Idaho?

Shipping and handling charges for direct delivery to the buyer are not taxed if listed separately on the invoice.

How to File and Pay Sales Tax in Idaho

Here are some ways you can file Idaho sales tax returns:

• File and pay online: Use Taxpayer Access Point (TAP) if you have a TAP account.
• Paper form: The Idaho Sales Tax Commission will mail you a customized Form 850 before your due date, which you should fill out and mail it back or return it in person.
• Let Zamp handle your Idaho sales tax filing and remittance so you never have to look at a sales tax return again! 

Explore how you can file and pay sales tax in other US states.

FAQs on Paying and Filing Idaho Sales Tax

What Is Use Tax?

Use tax applies to goods you use or store in Idaho that haven’t been properly taxed. The use tax rate is the same as Idaho’s sales tax rate.

You probably owe use tax if you operate a business that: 

• Shops online or buys items from sellers that don’t collect Idaho sales tax
• Uses goods when performing a nontaxable service
• Brings equipment, supplies, or vehicles into Idaho for permanent use
• Brings business assets into Idaho for temporary use
• Does contracting work on real property in Idaho

I Didn’t Collect any Idaho Sales Tax During this Period. Do I still Need to File a Return?

Yes. 

You should still file a “zero” return with the state even if you didn’t collect any sales tax over the taxable period.  

What Is the Penalty for Filing and/or Paying Idaho Sales Tax Late?

If you don’t file a tax return on time, a penalty of 5% of the tax due is applied for each month the return is late, up to a maximum of 25%.

If you file a return but don’t pay the full amount of sales tax, you’ll incur a penalty of 0.5% of the tax owed for each month the payment is late, up to a maximum of 25%.

Can I Amend an Idaho Sales Tax Return? 

Yes, but amending a return cannot be done online. You must have a paper copy of your incorrect Form 850 and write ‘amended’ at the top of the form.  After you have made the necessary corrections on the form, you mail it back to the state. 

How Often Do I Need to File and Pay Sales Tax in Idaho?

When you register for your seller’s permit, you will be informed of your filing frequency. Most retailers file returns monthly. They file the form and remit the tax on the 20th of every month after their reporting period. 

Retailers with a tax liability of less than $750 per quarter file quarterly. Distributors or wholesalers with minimal taxable sales can apply to file semiannually (on July 20 and January 20) or annually on January 20.

Note: If the 20th falls on a weekend or holiday, the return and payment are due on the next workday.

Idaho Sales Tax Due Dates

Idaho Monthly Sales Tax Filing Due Dates:

Taxable Period	Filing Due Date
January 2024	February 20, 2024
February 2024	March 20, 2024
March 2024	April 22, 2024
April 2024	May 20, 2024
May 2024	July 20, 2024
June 2024	July 22, 2024
July 2024	August 20, 2024
August 2024	September 23, 2024
September 2024	October 21, 2024
October 2024	November 20, 2024
November 2024	December 20, 2024
December 2024	January 21, 2025

Idaho Quarterly Sales Tax Filing Due Dates:

Taxable Period	Filing Dates
Q1 (Jan-March) 2024	April 22, 2024
Q2 (Apr-June) 2024	July 22, 2024
Q3 (July-Sept) 2024	October 21, 2024
Q4 (Oct-Dec) 2024	January 21, 2025

Idaho bi-annual Sales Tax Filing Due Date:

Taxable Period	Filing Dates
Jan - June 2024	July 22, 2024
July - Dec 2024	January 21, 2025

Idaho Annual Sales Tax Filing Due Date:

Taxable Period	Filing Due Date
Year 2024	January 21, 2025

Let The Experts Handle Your Idaho Sales Taxes

Dealing with sales tax in Idaho?  Let Zamp simplify the process! 

With effortless onboarding, precise tax calculations, and easy one-click filings, Zamp takes the stress out of managing sales tax for all business owners across the US. 

Contact us and streamline your tax management with Zamp today!