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Small Seller Exemption
Most people who sell goods in Idaho need a seller’s permit to collect and send in sales tax. However, you don’t have to do that if you qualify for the small seller exemption, which went into effect July 1, 2025. This exemption typically applies to individuals who sell things like crafts, baked goods, art, or homegrown fruits and vegetables.
Whether you qualify for this exemption or not, it doesn’t apply to the sales of:
- Motor vehicles
- Trailers
- All-terrain vehicles
- Utility-type vehicles
- Specialty off-highway vehicles
- Lodging
- Off-road motorcycles
- Snowmobiles
- Aircraft
- Vessels
- Alcohol or tobacco products
- Admissions or entertainment
Who’s not a small seller?
You don’t qualify for the small seller exemption if any of these are true:
- You aren’t an Idaho resident.
- You’re operating as a corporation, partnership, or limited liability company (LLC).
- You exceed $5,000 in gross sales from any source in either the current or previous calendar year. See the Responsibilities for small sellers section.
- You maintain a permanent location to conduct business.
- You buy untaxed products to resell, or you buy untaxed materials specifically to be incorporated into items for resale.
- You’re a contractor because you’re the end user of the materials you purchase.
Who qualifies for the small seller exemption?
You might qualify for the small seller exemption if all the following are true:
- You’re an Idaho resident.
- You operate as an individual or sole proprietorship.
- Your gross sales are $5,000 or less in both the current and previous calendar years.
- You don’t operate through a business entity such as a corporation, partnership, or LLC.
- You don’t maintain a permanent place of business such as an office, warehouse, or storefront.
- You don’t keep a stock of goods with the intent to exceed the $5,000 sales threshold.
Important:
If you qualify for the small seller exemption by meeting all of the above, remember:
- As a small seller, you must pay sales or use tax on all goods and materials you buy.
- You don’t need to apply for a seller’s permit or file paperwork with us.
Responsibilities of small sellers
If you qualify for the small seller exemption, you won’t collect sales tax on sales you make. However, you must do all of these:
- Pay sales or use tax on items you buy.
- Keep records for at least four years, if sales exceed $3,000. It’s important to note that total sales include sales you make whether in-state or out of state or through a marketplace facilitator.
- When asked, provide proof of exemption on a receipt or invoice that your sale is exempt from sales and use tax.
- Register with us if you sell at an event. The promoter will have instructions. Select I am not making taxable sales and enter “Idaho resident small seller” in the Products I am selling field.
- Claim the income you made from selling on your individual income tax return and file the return, if you meet filing requirements.
If you sell more than $5,000
If your gross sales in the current or prior calendar year exceed $5,000, you no longer qualify for the small seller exemption. Instead, you must:
- Immediately begin collecting sales tax. (Don’t collect or send sales tax on the original $5,000 in gross sales.)
- Apply for a temporary or regular seller’s permit within 30 days.
- Start sending in state sales and use taxes once you receive your permit.
Need help?
Laws and rules
- Idaho Code section 63-3622YY — Small Seller
- Sales Tax Rules
Business Exemptions
General Business Exemptions
All retail sales in Idaho are taxable unless Idaho or federal law specifically exempts them. See the Basics page for sales and use tax exemptions for more information.
Below are Idaho exemptions that might apply to businesses.
General
- If you resell goods, you might be able to buy them exempt from sales tax. See Buying Exempt for Resale.
- If you produce goods to sell, you might be able to buy the materials that go into making those goods exempt from sales tax. See the Production exemption.
- Building contractors might be able to buy building materials exempt from sales tax. See Exemptions from sales and use taxes on the Contractors
- If your business is logging, you might be able to buy equipment and supplies exempt from sales tax. See the Logging exemption.
- Medical products and prescriptions might qualify for an exemption.
- Transferring capital assets from one business to another might qualify for an exemption.
- Labor charges to repair tangible personal property such as computers, bicycles, and vehicles are exempt if the seller separately states those charges on the invoice. But, you might need to pay sales tax on labor charges to make repair parts. See Repair Shops and Vehicles & Vessels: Repairs.
Vehicles and vessels
- You might not have to pay sales tax on some boats or vessels, off-highway vehicles, aircraft, or office trailers or untitled transport trailers. Also see vehicle and vessel exemptions.
- You might not have to pay sales or use tax on certain motor vehicles that are gifts.
- Transferring vehicles that are capital assets from one business to another might be exempt.
- Repairs to vehicles and vessels might be exempt.
- Out-of-state businesses might be able to buy vehicles, vessels, or aircraft without paying sales tax, if they take them out of Idaho right away.
- The lease or purchase of a motor vehicle, trailer, or glider kit might be exempt from sales tax if it’s used in interstate commerce.
- Some aircraft used in certain ways are exempt from sales and use taxes.
More information
- See more sales tax exemptions for businesses in the Types of Exemptions
- See Forms and instructions and search for “exemption.”
Basics of Sales and Use Tax Exemptions
All retail sales in Idaho are taxable unless Idaho or federal law specifically exempts them. In all cases of exempt sales, the buyer and seller must each keep clear and complete records to explain why the seller didn’t charge the buyer sales tax.
Restrictions can apply to any tax-exempt sale or use. If the sale is taxable and the buyer doesn’t pay tax to the seller, the buyer owes use tax, which is the same rate as sales tax.
See exemptions that might apply to these main groups of taxpayers:
- Exemptions for individuals
- Exemptions for nonprofits and other organizations
- Exemptions for schools
- Exemptions for governments
- Exemptions for businesses
More information
- See Forms and instructions and search for “exemption.”
- See Types of exemptions for a list of various exemptions.
Individual Exemptions
All retail sales in Idaho are taxable unless Idaho or federal law specifically exempts them. See the page for sales and use tax exemptions for more information.
Below are Idaho exemptions that might apply to individuals.
For specific individuals
- New residents to Idaho might be exempt from use tax on vehicles and other goods they bring into Idaho.
- Nonresident military stationed here might be exempt from use tax on vehicles and other goods they bring into Idaho.
- Native American tribal members might be exempt from sales or use tax on motor vehicles and other purchases delivered to a reservation.
- Out-of-state buyers might be able to buy vehicles, vessels, or aircraft without paying Idaho sales tax, if they take them out of Idaho right away.
- Idaho residents making less than $5,000 in gross sales in the current calendar year might qualify for the small seller exemption.
For all individuals
- People who sell their own things one or two times in a 12-month period might qualify for the occasional sales exemption.
- You might be able to give a motor vehicle, off-highway vehicle, other vehicle, or boat or trailer to someone – including a family member – without anyone owing sales or use tax.
- You might be able to sell a motor vehicle to a close family member without their owing sale or use tax.
- You might not have to pay sales or use tax on some off-highway vehicles or vessels, aircraft, or office trailers or untitled transport trailers.
- Certain modified park-model recreation vehicles are exempt from sales and use taxes.
- Medical products and prescriptions might qualify for an exemption.
- Labor charges to repair tangible personal property such as computers, bicycles, and vehicles are exempt if the seller separately states those charges on the invoice. But, you might need to pay sales tax on labor charges to make repair parts. See Repair Shops and Vehicles & Vessels: Repairs.
- See a list of other types of exemptions from sales and use taxes.
More information
- See the first page of vehicle and vessel exemptions for a summary and which form to use.
- See Exemption forms and instructions and search for “exemption.”
- This chart lists all available vehicle and vessel sales or use tax exemptions, including for sales to individuals: Vehicles & Vessels: Exemption Certificates.
Sales and Use Tax Record of Returns Filed
Auctioneers
An auction is the buying and selling of goods through a bidding system. An auctioneer is a person who manages an auction by offering items for bid, taking bids, and then selling the items to the highest bidder. Auctioneers are retailers in the business of selling tangible personal property. Auctioneers act as intermediaries between buyers and sellers; they might not have the title to the goods sold.
When a buyer purchases goods at an auction, the sale is between the buyer and the auctioneer. The buyer makes payment to the auctioneer. If there’s a problem with the sale, the buyer will contact the auctioneer to resolve the issue.
Idaho state law requires auctioneers, agents, brokers, distributors, and factors who facilitate the sale of tangible personal property to collect and remit tax on retail sales unless a valid exemption exists. They must collect sales tax even if Idaho law wouldn’t require the property owner to collect the tax.
- Example: An auctioneer sells a vehicle owned by the federal government. The federal government is exempt from collecting tax. Idaho law still requires the auctioneer to collect tax because the auctioneer is making the sale.
Most auctioneers charge a buyer’s fee (generally 10% – 15% of the sale). Buyers pay this fee to get the tangible personal property they purchased in the auction. Buyer’s fees are taxable.
Out-of-state sales
Sales tax doesn’t apply to sales of tangible personal property that the seller delivers outside Idaho using a common carrier, U.S. mail, or seller’s delivery service.
The seller must keep records to support the sales tax exemption. This includes shipping bills of lading, postal receipts, or invoices that show the out-of-state destination with supporting documents.
If the buyer picks up the tangible personal property in Idaho or pays a third party to pick up the property and deliver it outside Idaho, the sale is subject to Idaho sales tax. That’s because the transfer of title has occurred in Idaho.
Out-of-state purchases
Use tax applies when an Idaho buyer purchases goods outside of Idaho that they use or store in Idaho. Learn more on our Use Tax page.