Idaho State Tax Commission

Idaho State Tax Commission

Sales/Use Tax

Sales tax applies to the sale, rental, or lease of tangible personal property and some services. Food is taxed in Idaho, but prescription drugs are not. Temporary lodging (30 days or less)—including vacation rentals by owner—is taxed. Read about Travel & Convention Tax for details.

A sale means any transfer of title to tangible personal property for payment. It includes exchange and barter. A sale occurs when title passes. Unless otherwise agreed, title passes to the buyer when the seller delivers the goods, even if a title document is delivered at a different time or place.

When you buy goods in Idaho, the retailer should charge sales tax. When you buy goods on the Internet, by telephone, or from a mail-order catalog, the retailer won’t charge sales tax if he's not an Idaho retailer. In that case, you owe use tax.

Use tax

Every state with a sales tax also has a use tax. Use tax is a tax on goods that you put to use or store in Idaho, if sales tax wasn't paid on the purchase of the goods. Most Idaho sales tax exemptions also apply to use tax. The use tax rate and sales tax rates are the same. Use tax is paid directly to the state, instead of to the seller of the goods.

Individuals can report use tax on their annual Idaho income tax return or submit it directly to the Tax Commission using Form 850-U.

Businesses must have a use tax permit if they buy items without paying sales tax. See our Sales/Use Tax for Businesses page for more information.

Occasional sales

If you make sales only a few times a year (e.g. bazaars, craft fairs, etc.), you may meet the criteria for a Temporary Seller’s Permit.

Tax rate history

The Idaho sales tax began in 1965. The rate has changed as follows:

PeriodRate
July 1965 through February 19833%
March 1983 through May 19834%
June 1983 through June 19844.5%
July 1984 through March 19864%
April 1986 through April 20035%
May 2003 through June 20056%
July 2005 through September 20065%
October 2006 to current6%

Forms/publications

Note: Forms 850, 852, and N-3850 are personalized and aren’t available online. Please read the notice at the top of our forms search page.

Related information

Laws and rules

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Last updated Nov. 29, 2013

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