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April 19, 2024
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Idaho levies a statewide sales tax of 6% on the retail sale, lease, or rental of most goods and some services. Additionally, local jurisdictions in Idaho can impose their own sales taxes, resulting in combined sales tax rates ranging from 6% to 9%, depending on the location of the sale.
This guide provides an overview of Idaho sales tax rules, rates, and business compliance requirements.
The Idaho sales tax rate in 2023 is 6% statewide. Additionally, local jurisdictions in Idaho can impose sales taxes up to 3% for total combined rates ranging from 6% to 9%.
To calculate Idaho sales tax, you would apply the state rate of 6% plus any applicable local rates to the taxable purchase price. For example, if an item costs $100 and the local tax rate is 1%, the total sales tax would be $7 ($100 * 7%).
You can look up local sales tax rates on the Idaho State Tax Commission website.
You do not need an Idaho seller's permit if you only sell tangible personal property wholesale and make no retail sales. However, you must provide an exempt sale certificate to your suppliers.
If you make temporary or occasional sales in Idaho, you may qualify for a Temporary seller's permit. This allows you to sell at up to 3 events per calendar year without a regular seller’s permit.
In Idaho, sales tax is charged on the retail sale of most tangible personal property (goods) and some services. Some exemptions include:
Some taxable services include hotel stays, vehicle rentals, production, and recreation services.
Idaho levies selective excise taxes on the sale or distribution of certain goods like motor vehicle fuels, alcohol, tobacco, and marijuana. These are in addition to the statewide 6% sales tax.
If you are an out-of-state seller shipping taxable goods to Idaho customers, you must register and collect Idaho sales tax once your total sales exceed $100,000 in the current or prior calendar year. This establishes economic nexus.
Use Idaho's online portal to apply for a remote seller's permit. You must charge Idaho's 6% statewide sales tax rate plus any applicable local taxes based on the ship-to location. Sales tax automation software can calculate this for you.
Oil and gas are taxed at 2.5% of the gross income from selling oil and gas products.
While groceries are taxable in Idaho sales tax, including ingredients used to prepare home meals, you can claim grocery credits of up to $100 per person as tax rebates.
Clothing and local sales tax rates are taxable at the regular rate of 6% statewide.
Idaho sales tax generally applies to digital products like downloaded music, ebooks, streaming services, and software.
Let's examine the critical steps for collecting Idaho sales tax, whether you're based in the state or out-of-state.
Even if you do not have a physical presence in Idaho, you may still be required to register and collect Idaho sales tax if you meet certain economic nexus thresholds. Specifically, if you have over $100,000 in Idaho sales in the current or prior year, you have economic nexus and must register to collect tax.
There are a few ways out-of-state sellers can establish a sales tax nexus and be considered "engaged in business" in Idaho:
If you meet any of the nexus triggers above, you must register online for an Idaho seller's permit and begin collecting and remitting sales tax. The easiest way to handle multi-state tax compliance is to use sales tax automation software to calculate the correct rates and file returns for you.
In Idaho, sales tax generally applies to delivery and transportation charges for shipments of taxable goods to customers. So, if you ship an item subject to Idaho sales tax, the associated shipping charge would also be taxable. An exception is when the delivery fees are separately stated on the invoice.
If you have an Idaho seller's permit, you must file regular sales tax returns with the Idaho State Tax Commission (STC) and remit any sales tax collected from customers. Even if you made no taxable sales for a period, you must file a zero return.
Returns and payments are due on the 20th of the month after each reporting period. You can file paper returns electronically through Idaho's Taxpayer Access Point (TAP).
The STC assigns each seller a monthly, quarterly, semi-annual, or annual filing frequency. This is based on your sales volume. Due dates for each period are:
Monthly filing due dates
If you are assigned a monthly filing frequency, returns and payments are due by the 20th of the following month for each reporting period:
Quarterly filing due dates
If you file quarterly returns, the reporting periods and due dates are:
Semi-Annual filing due dates
For semi-annual filing, returns are due on the following dates:
Annual filing due date
If you only need to file annually, the reporting period and due date is:
As you can see, Idaho sales tax returns and payments are always due on the 20th day of the month after the close of each reporting period. Filing on time is crucial to avoid late penalties.
Being selected for a sales and use tax audit by the Idaho State Tax Commission can feel intimidating, but understanding the typical audit progression can help you prepare. Here are the key phases:
If audit findings showing tax deficiencies are deemed unreasonable or incorrect, Idaho allows you to contest the results through the appeal process:
To register for an Idaho seller's permit, visit the Idaho State Tax Commission (STC) Business Registration page. You'll need to provide the following:
The STC does not charge a fee to obtain an Idaho seller’s permit. However, some integrated software solutions do have monthly subscription fees to automate multistate sales tax filing, which can provide immense time savings and accuracy.
Due to economic nexus laws, out-of-state online retailers shipping products to Idaho buyers may need to register if annual sales exceed:
Automated Idaho sales tax software can significantly ease the compliance burden for internet sellers lacking physical presence.
Idaho does not charge any fee to obtain a seller's permit or sales tax license. Registration is accessible through the STC online portal. However, registering through a third-party provider may incur associated software subscription fees.
The Idaho State Tax Commission (STC) is the sole agency business owners register with for a seller's permit to collect/remit the Idaho sales tax. Visit the STC website to start the online application.
For additional questions on Idaho sales tax filing, audits, appeals, registration, or general inquiries:
The STC website also contains resources on Idaho tax law, recent rate changes, taxpayer guides, contact forms, and instructional videos.
There you have it—a comprehensive guide on Idaho's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
The Idaho sales tax rate in 2023 is 6% statewide. Additionally, local jurisdictions in Idaho can impose sales taxes up to 3% for total combined rates ranging from 6% to 9%.
To calculate Idaho sales tax, you would apply the state rate of 6% plus any applicable local rates to the taxable purchase price. For example, if an item costs $100 and the local tax rate is 1%, the total sales tax would be $7 ($100 * 7%).
You can look up local sales tax rates on the Idaho State Tax Commission website.
You do not need an Idaho seller's permit if you only sell tangible personal property wholesale and make no retail sales. However, you must provide an exempt sale certificate to your suppliers.
If you make temporary or occasional sales in Idaho, you may qualify for a Temporary seller's permit. This allows you to sell at up to 3 events per calendar year without a regular seller’s permit.
In Idaho, sales tax is charged on the retail sale of most tangible personal property (goods) and some services. Some exemptions include:
Some taxable services include hotel stays, vehicle rentals, production, and recreation services.
Idaho levies selective excise taxes on the sale or distribution of certain goods like motor vehicle fuels, alcohol, tobacco, and marijuana. These are in addition to the statewide 6% sales tax.
If you are an out-of-state seller shipping taxable goods to Idaho customers, you must register and collect Idaho sales tax once your total sales exceed $100,000 in the current or prior calendar year. This establishes economic nexus.
Use Idaho's online portal to apply for a remote seller's permit. You must charge Idaho's 6% statewide sales tax rate plus any applicable local taxes based on the ship-to location. Sales tax automation software can calculate this for you.
Oil and gas are taxed at 2.5% of the gross income from selling oil and gas products.
While groceries are taxable in Idaho sales tax, including ingredients used to prepare home meals, you can claim grocery credits of up to $100 per person as tax rebates.
Clothing and local sales tax rates are taxable at the regular rate of 6% statewide.
Idaho sales tax generally applies to digital products like downloaded music, ebooks, streaming services, and software.
Let's examine the critical steps for collecting Idaho sales tax, whether you're based in the state or out-of-state.
Even if you do not have a physical presence in Idaho, you may still be required to register and collect Idaho sales tax if you meet certain economic nexus thresholds. Specifically, if you have over $100,000 in Idaho sales in the current or prior year, you have economic nexus and must register to collect tax.
There are a few ways out-of-state sellers can establish a sales tax nexus and be considered "engaged in business" in Idaho:
If you meet any of the nexus triggers above, you must register online for an Idaho seller's permit and begin collecting and remitting sales tax. The easiest way to handle multi-state tax compliance is to use sales tax automation software to calculate the correct rates and file returns for you.
In Idaho, sales tax generally applies to delivery and transportation charges for shipments of taxable goods to customers. So, if you ship an item subject to Idaho sales tax, the associated shipping charge would also be taxable. An exception is when the delivery fees are separately stated on the invoice.
If you have an Idaho seller's permit, you must file regular sales tax returns with the Idaho State Tax Commission (STC) and remit any sales tax collected from customers. Even if you made no taxable sales for a period, you must file a zero return.
Returns and payments are due on the 20th of the month after each reporting period. You can file paper returns electronically through Idaho's Taxpayer Access Point (TAP).
The STC assigns each seller a monthly, quarterly, semi-annual, or annual filing frequency. This is based on your sales volume. Due dates for each period are:
Monthly filing due dates
If you are assigned a monthly filing frequency, returns and payments are due by the 20th of the following month for each reporting period:
Quarterly filing due dates
If you file quarterly returns, the reporting periods and due dates are:
Semi-Annual filing due dates
For semi-annual filing, returns are due on the following dates:
Annual filing due date
If you only need to file annually, the reporting period and due date is:
As you can see, Idaho sales tax returns and payments are always due on the 20th day of the month after the close of each reporting period. Filing on time is crucial to avoid late penalties.
Being selected for a sales and use tax audit by the Idaho State Tax Commission can feel intimidating, but understanding the typical audit progression can help you prepare. Here are the key phases:
If audit findings showing tax deficiencies are deemed unreasonable or incorrect, Idaho allows you to contest the results through the appeal process:
To register for an Idaho seller's permit, visit the Idaho State Tax Commission (STC) Business Registration page. You'll need to provide the following:
The STC does not charge a fee to obtain an Idaho seller’s permit. However, some integrated software solutions do have monthly subscription fees to automate multistate sales tax filing, which can provide immense time savings and accuracy.
Due to economic nexus laws, out-of-state online retailers shipping products to Idaho buyers may need to register if annual sales exceed:
Automated Idaho sales tax software can significantly ease the compliance burden for internet sellers lacking physical presence.
Idaho does not charge any fee to obtain a seller's permit or sales tax license. Registration is accessible through the STC online portal. However, registering through a third-party provider may incur associated software subscription fees.
The Idaho State Tax Commission (STC) is the sole agency business owners register with for a seller's permit to collect/remit the Idaho sales tax. Visit the STC website to start the online application.
For additional questions on Idaho sales tax filing, audits, appeals, registration, or general inquiries:
The STC website also contains resources on Idaho tax law, recent rate changes, taxpayer guides, contact forms, and instructional videos.
There you have it—a comprehensive guide on Idaho's sales tax regime. Need help filing taxes for your ecommerce store? Get a demo with Numeral now.
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Deb Mukherjee
Deb is the head of marketing at Numeral. He has worked with the likes of Shopify and Wonderment and has helped countless ecommerce stores scale through seamlessly. With a background in finance, he often finds himself advising stores on sales tax and good financial systems.
With Numeral, you spend five minutes or less every month on sales tax. We’re the white-glove service you are looking for that’s run by ecommerce operators and CPAs.
No long-term contract. No credit card required.
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