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.
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.
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.
The Idaho sales tax began in 1965. The rate has changed as follows:
|July 1965 through February 1983||3%|
|March 1983 through May 1983||4%|
|June 1983 through June 1984||4.5%|
|July 1984 through March 1986||4%|
|April 1986 through April 2003||5%|
|May 2003 through June 2005||6%|
|July 2005 through September 2006||5%|
|October 2006 to current||6%|
- Form 850 instructions, Idaho Sales and Use Tax
- Form 850-U, Idaho Self-Assessed Use Tax Worksheet and Return
- Sales and Use Tax Record of Returns Filed
- Due Dates for Sales/Use, Travel & Convention, Greater Boise Auditorium District, E911, and Withholding
- Form ST-101, Sales Tax Resale or Exemption Certificate
- Sales Tax Bracket Schedule (Chart)
- Form TCR, Sales Tax Refund Claim
- Full list of sales and use tax forms and publications »
Note: Forms 850 and 852 are personalized and aren't available online. Please read the notice at the top of our forms search page.