You don’t owe Idaho use tax if you correctly paid another U.S. state’s sales tax* and its rate was equal to or greater than Idaho’s. You owe the difference if the other U.S. state’s sales tax rate is less than Idaho’s.
- Tracy buys a computer while visiting Seattle. She’s correctly charged Washington state sales tax and local tax. Currently, that rate totals 10.1%. Idaho’s sales tax rate is 6 percent. She doesn’t owe use tax because Washington state’s sales tax rate is greater than Idaho’s sales tax rate.
- Phil buys $500 worth of hobby equipment in Wyoming and pays state and local tax of 5%. Wyoming’s rate is 1% lower than Idaho’s rate. Phil owes Idaho use tax totaling 1% of the purchase price.
* A “U.S. state’s sales tax” includes local sales taxes such as city or county local option taxes, in any U.S. state, commonwealth, possession, territory or the District of Columbia.