As an e-commerce seller, you will need to collect sales tax in Idaho if you have:
(1) Gross receipts exceeding $100,000 in the current or previous year (economic nexus), or
(2) Physical presence in Idaho (physical nexus).
Below, we will highlight some of the basic provisions of Idaho sales tax law.
What is the tax rate range for Idaho?
State: Idaho’s general sales tax rate is 6%.
Local: Local jurisdictions can range from 0% to 3%. Local Sales Tax
Do you have physical or economic nexus in Idaho?
Physical nexus. Certain business activities create physical nexus in Idaho. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Idaho. Examples of business activities that can create physical nexus in Idaho include:
- An office, warehouse, salesroom or storage place
- Material or goods in stock
- Temporary rental or lease of property
- An employee or representative conducting business in the state
- Idaho Physical Presence Section
Economic nexus. Idaho recognizes economic nexus for any vendor with gross receipts that exceed $100,000 into the state in the previous or current calendar year. Once you have economic nexus established, you will be obligated to collect sales tax from buyers in the state.
- Gross receipts include sales made through a marketplace facilitator
- Gross receipts for marketplace facilitators include your own sales and your third-party sales into Idaho
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Services, unless an exemption applies
- Renting and leasing tangible personal property
- Most retail sales of food and drinks, including sales through vending machines
What are examples of sales of nontaxable/exempt items?
- Medical equipment and supplies, if purchased by a qualifying buyer
- Prescription drugs
- Items primarily used in the farming or ranching process
- Utilities and fuel
- Software as a Service (SaaS)
Are there any sales tax holidays?
Idaho does not currently recognize any scheduled sales tax holidays.
Is Idaho a member of the SST (Streamlined Sales Tax)?
Currently, Idaho is not a full or associate member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register online at: Idaho's Seller's Permit
For more information on Idaho rates, see: Idaho Local Sales Tax Page - State Tax Commission.