Introduction to Medical Products Exemption

This guide explains Idaho sales and use tax laws for buying and selling medical supplies and prescriptions. It describes who can buy which kinds of medical supplies and prescriptions without tax.

Buyers that qualify for the exemption

Medical equipment and supplies listed in Idaho Code section  63-3622N are exempt from sales tax when bought by:

  • A practitioner who’ll administer or distribute the items to patients. Learn who’s a “practitioner.”
  • A patient (or someone for a patient) with a practitioner’s prescription or work order.
  • An entity that can buy everything exempt.
  • A for-profit hospital or other health-care provider that will administer to patients under a practitioner’s prescription or work order.

Items that can qualify for the exemption

  • Drugs
  • Hypodermic syringes, insulin, insulin syringes
  • Artificial eyes, eyeglasses, eyeglass component parts, contact lenses
  • Hearing aids, hearing aid parts and accessories
  • Drugs and supplies used in hemodialysis and peritoneal dialysis
  • Braces and other orthopedic appliances
  • Dental prostheses and other orthodontic appliances, including fillings
  • Catheters, urinary accessories, colostomy supplies
  • Prosthetic devices
  • Equipment, devices, or chemical reagents used to test or monitor blood or urine of a diabetic
  • Durable medical equipment (see description in Definitions)

This list isn’t all-inclusive. See Idaho Code section  63-3622N for a full list of items that can qualify for the exemption.