Back to Sales Tax Updates

Idaho Sales Tax

On this page you will find handy sales and use tax information about Idaho.

How to use this page:

We’ve pulled in the information from all our Charts for a consolidated view by state.  Here you can see the sales tax rates and if the state has remote seller nexus rules. You can also see any sales tax holidays or amnesty programs that may exist, though these do not apply to all states.

Below the chart you can find any News & Tip item we have published that relates to Idaho that you can filter by topic. This will help you get informed on current and past legislation that has passed in the state.

State Sales Tax Rates
State Rate

6.000%
Range of Local Rates

0% – 3% Some local jurisdictions do not impose a sales tax.
Local Rates Apply to Use Tax

No
Remote Seller Nexus Rules
CLICK-THROUGH NEXUS

7/1/2018 – see state notice
AFFILIATE NEXUS

7/1/2008 
ECONOMIC NEXUS

6/1/2019
MARKETPLACE NEXUS

6/1/2019
Administration Information
Streamlined Sales Tax Status

Advisory State
NUMBER OF TAXING AUTHORITIES

11 Sales Tax Jurisdictions

HOME RULE AUTHORITIES

Yes
Sales Tax Sourcing (Intrastate)

Destination
Sales Tax Return Due Date

The 20th of the month following the reporting period
Exemption Information
RESALE CERTIFICATE

Idaho Resale Certificate

TYPES OF EXEMPTIONS

Product types of exemptions: aircraft, broadcast equipment, clean rooms, contractors, computer software, farming and ranching, funeral services, heating materials, logging, medical items, prescription drugs mining, motor fuel, sales for resale, R&D, utilities

 

Idaho Exemption Certificates
State Links
State Tax Web Page

Idaho State Tax Commission
Rate Look-Up Page

Idaho Sales Tax Rate Look-Up
Registration Link

Register for Idaho Sales Tax
History & Fun Facts
HISTORY

Idaho enacted its sales and use tax in 1965 and it was approved by the electorate during the 1966 election.

 

The original Idaho state sales tax rate was 3%, it has since climbed to 6% as of October 2006.
FUN FACTS
  • Several Idaho resort cities and three auditorium (community center that service public need and promote prosperity, security, and general welfare of the inhabitants of the district) districts have a local sales tax imposed in addition to the state sales tax. These local “option” taxes are decided by voters in the community.

No Regulation Without Representation Act of 2016 Introduced

Taking the opposite approach of the Marketplace Fairness Act and Remote Transactions Parity Act, the proposed bill would limit the ability of states to require remote sellers to collect use tax. However, the bill failed to pass.

Hand Tools Priced $100 or Less Used for Certain Activities Exempt in Idaho

Idaho sales tax exemption can apply to hand tools used for certain activities, effective 07/01/16. More…

Congress Approves Permanent Extension of Internet Tax Freedom Act

Congress approved a permanent extension of the Internet Tax Freedom Act, signed into law by the President 02/24/16. More…

Internet Tax Freedom Act Extended Through October 1, 2016

The President signed an act to extend the Internet Tax Freedom Act through 10/01/16. More…

Internet Tax Freedom Act Extended Until December 11, 2015

U.S. House of Representatives passed a provision to extend the Internet Tax Freedom Act until 12/11/15. More…

House Introduces Remote Transactions Parity Act of 2015

U.S. House of Representatives introduced the Remote Transactions Parity Act of 2015 on 06/15/15. More…

Idaho Homeowners Must Charge Sales Tax on Short-Term Rentals

Idaho homeowners must collect Idaho sales and travel and convention tax on short-term rentals. More…

Tax Due on Residual Value of Leased Vehicle when Option to Buy is exercised in Idaho

An Idaho taxpayer who totaled a leased vehicle was not entitled to a sales tax refund after exercising his option to buy the vehicle. More…

Senate Introduces Marketplace Fairness Act of 2015

On March 10, 2015, a bipartisan group of senators introduced the Marketplace Fairness Act of 2015.

Internet Tax Freedom Act Extended Until October 1, 2015, Permanent Extension Introduced

On December 16, 2014, President Barack Obama signed an act including a provision that extends the Internet Tax Freedom Act until October 1, 2015.

Internet Tax Freedom Act is Extended through December 11, 2014

President Barack Obama has signed federal legislation extending the Internet Tax Freedom Act through December 11, 2014.

Cloud Computing Services Exempt from Idaho Sales Tax

Idaho has passed a bill clarifying that remotely accessed (\”cloud\”)computer software is not considered tangible personal property and is therefore exempt from Idaho sales tax.

Subcontractor Liable for Tax on Materials it Installed in Idaho

A subcontractor to a general contractor constructing real property pursuant to a contract with a state agency was liable for Idaho use tax on the materials it installed on the project. Even though the materials had been purchased by the…

New Federal Digital Goods and Services Bill Proposed

Representative Lamar Smith (Republican, Texas) has introduced a bill to bar multiple taxes on digital goods and services. Smith had proposed an earlier bill which failed to pass. This bill is a revised version of the earlier bill. The proposed…

Application Software Accessed via Internet or Cloud Not Taxable in Idaho

Application software accessed over the Internet or through wireless media is not subject to Idaho sales and use tax because it is excluded from the definition of tangible personal property. “Application software accessed over the Internet or through wireless media”…

Federal Government Introduces New Remote Seller Bill

The federal Marketplace Fairness Act of 2013 was introduced in the House of Representatives and the Senate on February 14, 2013.

Idaho Issues Advice for Contractors

The Tax Commission will no longer allow contractors to substitute sales tax charged to the customer on improvements to real property for the tax owed on the purchase of building materials.

Retailer with Substantial Nexus in Idaho Defined

This legislation amends section 63-3611 of the Idaho Code to provide that a “retailer engaged in business in this state” be defined as any retailer with substantial nexus in this state, and creates a new section 63-3615A of the Idaho…

Idaho Processing Materials Used in Energy Production Exempt

Idaho HB 561 amends existing law to provide that the production exemption from sales and use tax shall be available to a business or separately operated segment of a business engaged in the business…

Idaho Amends Rules on Optional Software Maintenance Contracts

Specifically, the Rule states that if the maintenance contract is optional to the purchaser of canned software, then the portion of the contract fee representing upgrades or new software is subject to sales tax if the fees are separately-stated. If…

Building Materials Purchased by an Idaho Contractor Taxable

Work completed at a manufacturing plant was deemed subject to Idaho sales and use taxes because the work was an enhancement to real estate. The taxpayer was considered a real property contractor and, therefore, all materials purchased for incorporation into…

Idaho Authorizes Rebates to Repay Developers for Construction Costs

A developer who provides qualifying transportation improvements may claim a rebate of 60% of Idaho sales or use tax taxes.

Idaho Governor Signs Bill to Raise Sales Tax Rate

On August 31, 2006, Governor James E. Risch signed the Property Tax Relief Act.

Idaho Becomes a Participating State in the Streamlined Sales Tax Project (SSTP).

As the result of an Executive Order signed by Governor Dirk Kempthorne on July 29, 2005, Idaho officially supports the mission of the Streamlined Sales Tax Project, joining as a participating state.