Idaho Sales Tax Rate & Rules (2026)

Last updated: 2026-03-27

What is the sales tax rate in Idaho?

What is taxable in Idaho?

How do you register to collect sales tax in Idaho?

What is the economic nexus threshold for Idaho?

How to register for sales tax in Idaho

Before you can collect sales tax, you need to register with the Idaho State Tax Commission. Here is the step-by-step process.

1. Apply for a Seller's Permit online through the Idaho State Tax Commission at tax.idaho.gov
2. Provide your FEIN or SSN, business entity type, and Idaho location details
3. The permit is free and usually issued within 5-7 business days
4. A single permit covers your entire Idaho business — separate location permits are not required
5. Remote sellers meeting the $100,000 economic nexus threshold must also register

How to collect sales tax in Idaho

Once registered, you are responsible for charging the correct amount of sales tax on every taxable transaction. Here is how the collection process works in Idaho.

1. Determine taxability — Idaho taxes most tangible goods and some services at a uniform 6% rate
2. Idaho has minimal local taxes, so the rate is generally 6% statewide (some resort cities may add up to 2.5%)
3. Idaho is a destination-based state for remote sellers
4. Charge tax at the point of sale and itemize on receipts
5. Accept Idaho resale certificates (Form ST-101) from qualifying wholesale buyers
6. Keep records of all transactions and exemptions for at least 3 years

How to file and remit sales tax in Idaho

Filing your sales tax return on time is critical to avoid penalties. Idaho requires electronic filing for most businesses.

1. File electronically through the Idaho Taxpayer Access Point (TAP) at idahotap.gentax.com
2. Filing frequency is assigned based on liability: monthly, quarterly, or annually
3. Returns are due on the 20th of the month following the reporting period
4. Report gross sales, exempt sales, and taxable sales
5. Pay electronically through TAP
6. Retain all records for at least 4 years

What is exempt from Idaho sales tax?

Not everything is subject to sales tax. Idaho provides exemptions for certain products, buyers, and uses. Always verify the specific exemption requirements with the Idaho State Tax Commission.

• •Sales for resale with a valid Idaho resale certificate (Form ST-101)
• •Grocery food for home consumption
• •Prescription drugs and certain medical equipment
• •Agricultural equipment, irrigation equipment, and farm supplies
• •Manufacturing equipment used directly in manufacturing
• •Sales to the federal and Idaho state governments
• •Motor fuels subject to the separate Idaho fuels tax

What are the highest combined sales tax rates in Idaho?

Because Idaho allows local jurisdictions to add their own sales taxes on top of the state rate, combined rates vary by location. Here are some of the highest combined rates in major Idaho cities.

What is use tax in Idaho?

Idaho use tax applies when you buy taxable goods from out-of-state vendors who do not collect Idaho sales tax. The use tax rate is 6%, matching the sales tax rate. Businesses report use tax on their regular sales tax return (Form 850). Common triggers include online purchases, equipment from out-of-state suppliers, and items withdrawn from inventory for personal use.

Does Idaho have marketplace facilitator rules?

Idaho requires marketplace facilitators with $100,000 or more in Idaho sales to collect and remit sales tax on behalf of third-party sellers. This includes Amazon, eBay, Etsy, and similar platforms. Sellers using these marketplaces are not responsible for collecting tax on marketplace-facilitated sales but must still collect on direct sales.

What are the penalties for sales tax non-compliance in Idaho?

Idaho charges a penalty of 0.5% per month for late payment (up to 25%) and a separate penalty of 5% per month for late filing (up to 25%). Interest accrues at the federal underpayment rate plus 2%. Willful failure to collect or remit sales tax can result in criminal prosecution with fines and imprisonment.

This is general information, not legal or tax advice. Tax rules change frequently — always verify with the official state agency. Sources: Idaho State Tax Commission.