Yes, Idaho has a sales tax of 6 percent

Idaho charges a 6 percent state sales tax on most retail purchases. This is the base rate that applies statewide. However, cities and counties in Idaho can add their own local sales tax on top of the state rate, so your total tax at checkout depends on where you are shopping. Some Idaho counties charge no local tax at all, while others add up to 3 percent or more.

The state tax applies to tangible goods — things you can touch and take home. It does not apply to services like haircuts, car repairs, or plumbing work, with a few exceptions. Food you buy at a grocery store is not taxed, but prepared food from a restaurant or deli counter is taxed at the full rate.

Key Takeaways

  • Idaho's state sales tax is 6 percent, but your actual tax rate depends on your city or county, which may add 1 to 3 percent more.
  • Groceries are exempt from sales tax, but restaurant meals and prepared foods are taxed at the full rate.
  • Services like haircuts, repairs, and medical care are generally not subject to sales tax in Idaho.
  • Clothing and shoes have no special exemption in Idaho and are taxed like any other retail item.

How local sales tax works in Idaho

Idaho allows cities and counties to impose their own local sales tax on top of the 6 percent state rate. This local tax is not uniform across the state. Some counties have no local tax at all, while others have added 1, 2, or even 3 percent. Ada County (which includes Boise) charges 1 percent local tax, bringing the total to 7 percent. Canyon County charges 1 percent. Kootenai County charges 1 percent. Smaller or rural counties may have different rates or no local tax.

The only way to know your exact sales tax rate is to check your city or county. The Idaho State Tax Commission website lists local tax rates by county, or you can call your city or county assessor's office. When you shop online and the retailer ships to an Idaho address, they must collect the combined state and local tax rate for your location.

What is exempt from Idaho sales tax

Groceries and food for home consumption are exempt from Idaho sales tax. This includes bread, milk, eggs, vegetables, meat, and other items you buy to cook at home. It does not include alcohol, candy, or prepared foods. If you buy a rotisserie chicken from a grocery store deli, that is taxed. If you buy a raw chicken to cook at home, it is not.

Prescription medications are exempt. Over-the-counter drugs and vitamins are taxed. Medical devices like hearing aids and prosthetics are exempt, but eyeglasses and contact lenses are taxed. Services are generally not taxed — a doctor visit, dental work, haircut, or car repair is not subject to sales tax. However, some services bundled with goods (like installation of carpet or appliances) may be taxed depending on how the retailer structures the charge.

Clothing and shoes have no special exemption in Idaho and are taxed at the full rate. Children's clothing is not exempt either, unlike in some other states. Used items sold by individuals are not subject to sales tax, but used items sold by a business are taxed.

Sales tax on online and out-of-state purchases

If you order something online from a retailer outside Idaho and have it shipped to an Idaho address, the retailer must collect Idaho sales tax at checkout if they have a physical presence in Idaho or meet certain sales thresholds. Most large retailers (Amazon, Walmart, Target) collect Idaho sales tax on orders shipped to Idaho. Smaller retailers may not, depending on their sales volume and whether they have nexus in the state.

If a retailer does not collect sales tax at checkout, you are technically responsible for paying use tax to Idaho when you file your state income tax return. Use tax is the same rate as sales tax and applies to goods you bought out of state but brought into Idaho for use. In practice, most individuals do not report use tax, but the obligation exists.

Who collects and pays Idaho sales tax

The retailer collects sales tax from you at the point of sale and is responsible for sending it to Idaho. You do not send the tax directly to the state. The retailer files monthly or quarterly sales tax returns with the Idaho State Tax Commission, depending on their sales volume. Retailers who collect less than $1,000 per month may file annually instead.

If you are a business owner in Idaho, you must register for a sales tax permit with the Idaho State Tax Commission before you start selling taxable goods. You then collect tax from customers and remit it to the state on your filing schedule. Businesses that fail to collect or remit sales tax can face penalties and interest.

Special sales tax situations in Idaho

Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell those goods. A retailer buying inventory does not pay sales tax on that purchase; the tax is collected when the customer buys the finished product. If you claim resale status without actually reselling the item, you can face penalties.

Agricultural equipment and machinery used in farming may may have access to for exemption or reduced tax rates under certain conditions. Irrigation equipment, tractors, and harvesting machinery may be exempt if they are used directly in agricultural production. The rules are specific, and you should contact the Idaho State Tax Commission or a tax professional to confirm whether a particular item qualifies.

Nonprofit organizations registered with the state may be exempt from sales tax on certain purchases, but they must have a valid exemption certificate. Schools, churches, and charities should contact the Idaho State Tax Commission to determine what purchases may have access to for exemption.

Frequently Asked Questions

What is the total sales tax rate in my Idaho city?

The total rate is 6 percent state tax plus your local city or county tax. To find your local rate, visit the Idaho State Tax Commission website and search by county, or call your city or county assessor's office. Rates range from 6 percent (state only) to 9 percent or higher in some areas.

Do I pay sales tax on groceries in Idaho?

No. Groceries and food for home consumption are exempt from Idaho sales tax. This includes produce, meat, dairy, and bread. Restaurant meals, prepared foods from a deli counter, and alcohol are taxed at the full rate.

Is clothing taxed in Idaho?

Yes. Idaho does not exempt clothing or shoes from sales tax, even children's clothing. All clothing is taxed at the full state and local rate where you make the purchase.

Do I owe tax on something I bought online from out of state?

If the retailer collected Idaho sales tax at checkout, no. If they did not, you may owe use tax to Idaho, which is the same rate as sales tax. Most people do not report use tax on individual purchases, but the obligation technically exists when you file your state income tax return.

Are services like haircuts or car repairs taxed in Idaho?

No. Services are generally not subject to Idaho sales tax. A haircut, dental work, car repair, or plumbing service is not taxed. However, if the service includes a tangible product (like parts installed in a repair), the product portion may be taxed depending on how the business structures the invoice.