This blog was last updated on December 4, 2025

The Idaho state sales tax rate is 6%. The state allows local jurisdictions to levy additional sales taxes.

What’s Taxable in Idaho?

Idaho sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers selling taxable goods and/or services are required to collect and remit sales tax to the state.

Examples of taxable items include:

• Clothing
• Groceries (at the state level)

Does Idaho Tax Groceries?

Yes, Idaho state sales and use tax applies to groceries. However, there are local exemptions for groceries in Ketchum, Lava Hot Springs, McCall, and Harrison.

Sales Tax Nexus in Idaho

A seller is liable to collect and remit Idaho sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence. Marketplace facilitators also have collection obligations under Idaho sales tax laws.

Idaho: Physical Nexus

Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Idaho.

Idaho: Economic Nexus

Idaho enforces economic nexus for remote sellers. If your business has:

• Over $100,000 in sales during the current or previous calendar year;

you may be required to register for and collect Idaho sales tax.

Learn more at How Does the Idaho Economic Nexus Work?

Do Online Sales to Idaho Residents Require Sales Tax?

Yes, when sellers meet the economic nexus threshold listed above, their online sales to Idaho residents require sales tax.

Idaho Sales Tax Exemptions

Certain transactions are exempt from Idaho state sales tax. Idaho tax exemptions include:

• Most services, unless state statutes specify otherwise
• Tangible personal property used directly in farming
• Prescription drugs and medical items

Entity or Use Based Exemptions

Additionally, Idaho exempts sales to certain entities from the sales/use tax, including the following:

• Certain qualified nonprofit entities:
  • Hospitals and health-related entities
  • Educational institutions
  • Forest protective associations
• Certain wholesalers
• Retailers selling for resale

How to Claim Sales Tax Exemption in Idaho

To claim an exemption, an entity must provide an exemption certificate with the sale. The Idaho State Tax Commission accepts Form ST-101 as the most commonly used form.

Idaho Filing and Remittance Requirements

Idaho offers multiple methods for filing and remitting sales and use tax:

• E-filing through the Idaho Taxpayer Access Point (TAP).
• Paper filing with the Form 850 by mail or in-person. In order to paper file, Idaho requires that the taxpayer utilize the Form 850 mailed by Idaho to the taxpayer with the preprinted account name, account number and reporting period.

Frequently Asked Questions

Is Idaho a part of the Streamlined Sales Tax (SST) initiative?

No, Idaho is not part of SST.

Does Idaho have sales tax holidays?

No, Idaho does not currently offer sales tax holidays.

Are there any special point of sale fees in Idaho?

Point-of-sale fees are fixed amount or rate-based assessments levied on certain products or services at the time of sale and paid by the final consumer at retail.  For example, Idaho imposes an E911 fee.

How do I register for a Idaho Sales Tax License?

Idaho businesses or individuals selling tangible personal property or certain services to Idaho consumers may need register to collect sales tax when meeting qualifying requirements.  To register for a regular seller’s permit in Idaho, a business must submit an online Idaho Business Registration application. Failure to comply can result in penalties and interest, so sales tax compliance in Idaho is critical for businesses of all sizes.

Are vehicles taxed in Idaho?

Idaho applies a 6% sales tax on vehicle purchases.