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.”