New law means Idaho small sellers won’t have to charge sales tax

BOISE, Idaho – July 17, 2025 – A new law took effect on July 1 that creates an exemption for qualifying Idaho small sellers, who won’t have to charge sales tax on sales they make in Idaho.

Idaho law defines a “small seller” as an Idaho resident operating as an individual or sole proprietorship, whose cumulative gross sales don’t exceed $5,000 in either the current or previous calendar year. The $5,000 limit includes sales made in state, out of state, or using a marketplace facilitator.

Small sellers who qualify won’t have to get a permit or collect sales tax on their Idaho sales.

Sales of certain items such as vehicles, lodging, alcohol, and admissions are excluded from this exemption.

Qualifying small sellers still have certain obligations. They must:

• Pay sales tax on everything they buy.
• Start tracking their sales if they make more than $3,000 per year.
• Register with the Idaho State Tax Commission when they participate at a promoter-sponsored event.
• Report their income on their income tax returns.

Small sellers who exceed $5,000 in gross sales for the current or previous calendar year — or who no longer meet other requirements — must get a seller’s permit within 30 days and immediately begin collecting and sending in Idaho sales and use taxes.

For more information about the new exemption and to see if you qualify, visit tax.idaho.gov/smallseller. You can also call (208) 334-7660 in the Boise area or toll free at (800) 972-7660.