Idaho Sales Tax

The total Idaho sales tax rate is primarily the 6.0% state rate. While Idaho does not have a broad system of county or city sales taxes like other states, certain “Resort Cities” (such as Sun Valley, McCall, and Sandpoint) are authorized to charge a local option tax. These local rates generally apply to retail sales and lodging to support local infrastructure and services.

Idaho Sales Tax Rates

The following sales and use tax rates apply in Idaho at the state and local level:

• The state sales tax rate in Idaho is 6.0%.
• Local sales tax is allowed by the state in resort cities if there is a vote and a 60% majority approves the taxation – this can apply as well to hotel and liquor taxes. For example, there is a 3% local sales tax rate in Sun Valley in Blaine County.

Because of the way the system is designed, the sales tax rates can be quite complex and can be charged at the county, city, school, or transportation level depending on the needs of that region.

Tax Sourcing

Idaho is a Destination-Based Sourcing state. This means the sales tax rate is determined by where the buyer receives the goods.

Shipments: If you ship a product to a customer in a resort city that has a local tax, you must collect both the 6% state tax and the specific local option tax for that city.

Storefronts: If a customer buys an item at your physical shop, the sale is sourced to your shop’s location.

Idaho Nexus

Physical Nexus

You have physical nexus in Idaho if your business:

• Has an office, warehouse, or storefront in the state.
• Stores inventory in the state (including Amazon FBA).
• Has employees, contractors, or sales reps living or working in Idaho.
• Delivers goods into Idaho using your own company-owned vehicles.

Economic Nexus

Remote sellers with no physical presence must register if they meet the following threshold in the current or previous calendar year: more than $100,000 in total retail sales in Idaho.

Note: Idaho does not use a transaction count threshold. Only the $100,000 revenue mark triggers the requirement.

Marketplace Facilitators

Marketplace facilitators (Amazon, eBay, etc.) are required to collect and remit Idaho sales tax on behalf of their sellers.

Threshold Calculation: Sales made through a marketplace do count toward your $100,000 economic nexus threshold.

Small Seller Exception: As of late 2025, Idaho introduced a “Small Seller” exemption for residents whose cumulative gross sales (including marketplace sales) do not exceed $5,000. These micro-businesses are not required to hold a permit unless they exceed that limit.

What Is Taxable in Idaho

Tangible Goods

Most physical items are taxable at 6.0%.

Exemptions: Prescription drugs and certain medical devices. Unlike many states, groceries are taxable in Idaho (though Idaho residents receive a grocery tax credit on their state income tax returns to offset this).

Services

Most services are not taxable in Idaho. However, the state taxes:

• Amusements: Admissions to movies, concerts, and sporting events.
• Lodging: Short-term rentals (30 days or less) are taxable.
• Product-Related Services: Services that are part of the sale of a taxable item (like a fabrication fee for a custom-made item) are taxable.

Shipping and Handling

Shipping and handling charges are exempt if they are separately stated on the invoice and the goods are shipped directly to the buyer. If “Shipping and Handling” is combined in one charge with the price of the item, it is taxable.

Digital Goods

Digital Products: Digital books, music, and videos are taxable in Idaho if the purchaser receives a permanent right to use them.

SaaS: Software as a Service is generally exempt in Idaho because it does not involve the transfer of tangible personal property.

Exemptions

Tax Exemptions exist for manufacturing equipment and machinery, medical devices, and prescription drugs as well. Before assuming an exception to any of the sales tax applied in Idaho, be sure to review the documentation to receive an exemption certificate on the State Tax Commission’s website.

As of July 1, 2025, Idaho has implemented a small seller exception for Idaho residents only. If your business’s gross sales are $5000 or less, you are exempt from paying sales tax for most items. Exclusions apply for items such as motor vehicles, lodging, alcohol and tobacco. For complete details and to see whether you qualify, refer to this article on the Idaho sales tax commission website.

Sales Tax Holidays

Idaho does not have any sales tax holidays.

Registration and Filing

The State of Idaho requires that all businesses that must collect sales tax register with the state. You can do so through the State Tax Commission’s website using the IBR-1 form. This form is a combined form for the Tax Commission, Industrial Commission, and Idaho Department of Labor and applies to both in-state and out-of-state sellers. If you are out of state and the remainder of the form’s purposes do not apply to you, there are detailed instructions online for how to complete it.

After completing the IBR form, you will receive your account number and permit for payment within 10 days. This will provide you with the Idaho Seller’s Permit needed to do business in the state.

Filing Frequencies and Deadlines

You will pay Idaho sales and use tax through the following methods:

• For Those in State – Idaho is a destination-based sales tax state so you must determine the local sales tax rate for where your goods are being sent to ensure tax compliance. Few towns in the state have an additional sales tax, so this will only apply if you are doing business in resort towns with rates above 6%.
• Out of State Sellers – If you have economic nexus in the State of Idaho, you will need to complete the same process for determining the sales tax rate based on where you are sending your goods.
• Shipping Charges – Shipping is not subject to sales tax if it is itemized on the customer’s bill. If the shipping is included in the price, the full purchase price is subject to sales tax.
• Filing Your Return – The Idaho State Tax Commission has an online portal through which you can pay your sales tax due here.

Your filing frequency will be determined at the time you receive your permit. It will be related to the total liability you expect to have to the state. The deadlines for each frequency are listed below.

Quarterly: For those required to file quarterly, the following due dates apply:

Period	Due Date
January – March (Q1)	April 20
April – June (Q2)	July 20
July – September (Q3)	October 20
October – December (Q4)	January 20

Monthly: For those required to file monthly, the following due dates apply:

Period	Due Date
January	February 20
February	March 20
March	April 20
April	May 20
May	June 20
June	July 20
July	August 20
August	September 20
September	October 20
October	November 20
November	December 20
December	January 20

Penalties and Interest

There are penalties for both late filing and late payment of Idaho Sales and Use Tax. If you fail to file on time and are not in tax compliance, you will pay the greater of either 6% of the tax due per month (with a maximum fine of 25%) or $10. This applies to those with zero returns as well – there will be a $10 fee for not filing your zero tax return.

For those that pay their sales and use tax remittance late, you will be charged interest based on the year in which the tax was due. A full table of interest rates is available here.

Resources

• Idaho State Tax Commission Sales/Use Tax Information
• Taxpayer Access Point for Online Payments
• Form 850 for offline filing (you must request a form; you cannot download blank forms)
• Chart of Due Dates for Sales Tax Payments

Idaho Sales Tax Software

If you operate or do business in Idaho and are interested in software or tools to help you reduce the cost and time of calculating sales tax due in the state, consider the TaxTools tax calculator. The TaxTools software offers a range of features such as sorting, data reviewing, and a tax calculator to streamline the process of determining what should be collected and from whom. It can be integrated with your existing eCommerce solution or used as a standalone tool for your site. Contact us today to learn more or to sign up for a free trial.

Last updated January 2026