Idaho’s sales tax rate is 6%. Idaho’s use tax rate is also 6%.
Basics of sales tax
Sales tax applies to every retail sale. Examples of sales include:
- The sale, lease, or rental of tangible personal property (goods)
- Digital books, videos, music, or games with a permanent right for the buyer to use
- Short-term rental accommodations for 30 days or less
- Furnishing meals or drinks
- Admissions to events or places in Idaho
- The privilege to use personal property or facilities for recreation
- Production, fabrication, printing, or imprinting labor
Basics of use tax
Use tax applies to goods used or stored in Idaho if:
- The seller didn’t charge sales tax.
- The buyer didn’t pay at least 6% sales tax (such as on goods bought while in another state).
- The buyer bought something online and didn’t pay 6% Idaho
- The purchase doesn’t qualify for an exemption. Or, the goods are used in a way that no longer qualifies for the original exemption claimed.
See Use Tax for more information.
Buyers owe sales tax on goods they use or store in Idaho. This includes goods they buy in person, out-of-state, online, by telephone, or from a mail-order catalog.
Buyers owe use tax if they didn’t correctly pay sales tax – or didn’t pay at least 6% sales tax – on taxable goods, and they don’t qualify for an exemption. See Use Tax for more information.
Idaho offers some exemptions from sales and use taxes when buying goods. See Sales Tax Exemptions for more information.
Almost everyone selling goods or offering taxable services in Idaho must:
- Have a seller’s permit
- Collect sales tax
- File a return for sales and use taxes
- Forward the tax they collected to the Tax Commission
You might not need a seller’s permit if you only make a couple of sales per year. See Occasional Sellers for more information.
What's in the taxable purchase price
You owe sales or use tax on the following items, even if they’re separately stated on the invoice:
Freight-in to the retailer
Fees charged for shipping goods to the retailer, who then passes the charges to the buyer
Manufacturer’s or importer’s excise tax
U.S. federal taxes that are charged to the retailer before the retail sale, but might still be a separate item on the invoice to the buyer
Example: Taxes on cars, gasoline, beer, wine, and cigarettes
Certain services the seller performs as part of the sale
Example: Assembling an item for a fee; Clothing alterations charged at the time of the sale
Certain surcharges or fees
- Fees for paying with a credit card, debit card, or gift card
- Environmental or disposal fees (except those that a government agency directly imposes)
- Fuel surcharges that aren’t tied to delivery
What's not in the taxable purchase price
You don’t owe sales or use tax on the following items, if they’re separately stated on the invoice:
Shipping and handling
Shipping and handling charges for shipping the goods directly to the buyer
Installation labor, such as the labor to install a television in a home at the time of the sale
Repair labor, such as the labor to fix a customer’s television
- Parts used to make repairs are taxable.
- Labor to install parts isn’t taxable (e.g., installing parts in a car after the sale of the car).
- Labor to repair goods you own isn’t taxable. (See the Repair Shops guide.)
Charges for optional insurance on goods rented or sold.
Certain interest charges
Interest, carrying charges, service charges or financing charges on goods sold
Note: Special rules apply to interest, service, and financing charges on leases. See Renting and Leasing Tangible Personal Property.
U.S. federal excise taxes
U.S. federal excise taxes that the retailer charges the customer at the time of the retail sale. The retailer pays the supplier the tax when the retailer buys the items for resale. The retailer then charges and separately states the excise tax on the invoice.
Example: New, large tractor-trailer units
Trade-in allowances on merchandise traded in for other goods
- Can cover all or part of the purchase price.
- Goods traded in must be added to the seller’s inventory.
Example: Donna buys a range from Sam’s Appliances for $800. Sam’s agrees to give Donna a $250 trade-in allowance on her old range. Sam’s agrees to deliver the range for an additional $25. Sam’s doesn’t charge Donna sales tax. Donna owes use tax on $550 ($800 minus the $250 trade-in; the $25 delivery fee isn’t taxable).
Taxable purchase price and discounts and rebates
The following table explains how discounts or rebates can affect the taxable purchase price.
Type of discount allowed
How the discount or allowance works
Does it reduce the taxable purchase price?
Reduction of the buyer’s cost that a third party offers. The rebate is only valid if there’s proof of purchase.
Electronic or paper coupon or other price reduction that the retailer gives but receives no reimbursement for.
Retailer’s trade discount
Discount given to good customers or customers in a certain industry (e.g., a lumber yard that gives contractors a 3% discount).
Discount that encourages the buyer to pay the bill on time (e.g., a 2% discount if the customer pays the bill within a certain number of days).
Laws and rules
- Sales Tax (Idaho Code section Title 63, Chapter 36)
- Sales and Use Tax Rules
- Decisions: Sales & Use
- Sales Tax Rules Committee
Learn more about use tax:
- Retailer Engaged in Business in This State (Idaho Code section 63-3611)
- Sales Price (Idaho Code section 63-3613)
- Storage (Idaho Code section 63-3615)
- Tangible Personal Property (Idaho Code section 63-3616)
- Imposition and Rate of the Use Tax – Exemptions (Idaho Code section 63-3621)
- Use Tax on Transient Equipment (Idaho Code section 63-3621A)
- Returns and Payments (Idaho Code section 63-3623)
- Retail Sales: Sale at Retail (Sales Tax Rule 011)
- Sales Price or Purchase Price Defined (Sales Tax Rule 043)
- Application and Payment of Use Tax (Sales Tax Rule 072)
- Tangible Personal Property Bought or Shipped to Idaho (Sales Tax Rule 073)
- Time and Imposition of Tax, Returns, Payments and Partial Payments (Sales Tax Rule 105)
- Vehicles and Vessels – Gifts, Military Personnel, Nonresident, New Resident, Tax Paid to Another State, Sales to Family Members, Sales to American Indians, and Other Exemptions (Sales Tax Rule 107)