Idaho charges a 6 percent sales tax on most goods, with some exceptions

Idaho's state sales tax rate is 6 percent. This applies to tangible items you buy in stores — clothing, groceries, electronics, furniture. When you see a price tag, that amount does not include the tax; the 6 percent gets added at checkout.

Many Idaho cities and counties add their own local sales tax on top of the state rate. Local rates range from 0 to 3 percent depending on where you live, so your total tax can be anywhere from 6 to 9 percent. A purchase that costs $100 in one Idaho town might cost $106 in another town 20 miles away.

Some items are taxed differently or not taxed at all. Food you buy to cook at home — milk, bread, vegetables, meat — is not taxed. Prescription medications are not taxed. But prepared food, restaurant meals, and food from a deli counter are taxed at the full rate.

Key Takeaways

  • Idaho's state sales tax is 6 percent, and most cities and counties add 0 to 3 percent more, making your total tax between 6 and 9 percent.
  • Groceries and prescription medications are not taxed, but restaurant meals and prepared foods are taxed at the full rate.
  • The tax rate depends on where you make the purchase, not where you live, so buying in different towns can result in different total costs.
  • Online purchases from out-of-state sellers may or may not be taxed depending on the seller's location and whether they have a physical presence in Idaho.

What is and is not taxed in Idaho

The line between taxed and untaxed items is not always obvious. Unprepared food — raw chicken, fresh apples, bulk rice — is never taxed. The moment that same food is prepared for immediate eating, it becomes taxable. A rotisserie chicken from the grocery store deli is taxed. A raw chicken from the meat counter is not.

Services are generally not taxed in Idaho, with some exceptions. A haircut is not taxed. Plumbing repair is not taxed. But if you buy a haircut and a bottle of shampoo in the same transaction, only the shampoo is taxed. Repair parts are taxed, but the labor is not.

Clothing and shoes are taxed at the full rate. There is no clothing exemption in Idaho. A pair of jeans, a winter coat, and work boots all have 6 percent state tax plus any local tax added.

Local sales tax rates vary by city and county

Idaho does not have a single statewide sales tax. The state collects 6 percent, but cities and counties can add their own local tax. Ada County (which includes Boise) adds 1 percent, bringing the total to 7 percent. Canyon County adds 1 percent. Some rural counties add nothing, so you pay only the 6 percent state rate.

The local tax rate depends on where the store is located, not where you live. If you live in a county with no local tax but drive to a neighboring county to shop, you pay that county's local tax. The tax is collected at the point of sale.

To find your local rate, search online for your city or county name plus "sales tax rate," or ask the cashier. Most retailers know their local rate and can tell you the total before you check out.

How sales tax is collected and who pays it

The retailer collects the sales tax from you at the register and sends it to the state and local government. You do not send in a separate payment. The tax is built into what you pay when you buy something.

Businesses that sell goods in Idaho must register with the Idaho State Tax Commission and collect tax on every sale. Online retailers that have a warehouse, office, or other physical location in Idaho must also collect tax on orders shipped to Idaho addresses. Retailers based entirely outside Idaho may not collect tax, though this is changing as federal law evolves.

If you buy something online from an out-of-state seller and no tax was collected, you are technically responsible for reporting and paying the tax yourself on your Idaho tax return. In practice, very few individuals do this, but the obligation exists.

Tax-exempt purchases and who qualifies

Most people pay sales tax on everything they buy. However, certain organizations can make tax-free purchases. Nonprofits registered with the IRS, schools, and government agencies can buy items without paying sales tax if they provide a tax exemption certificate to the seller.

Individual shoppers do not have a blanket tax exemption. You cannot claim an exemption just because you are low-income or disabled. The only broad exemption for individuals is on unprepared food and prescription medications, which are not taxed for anyone.

If you are buying on behalf of a nonprofit or government agency, ask the organization for their tax exemption certificate. You will need to provide it to the retailer before the purchase.

Sales tax on specific purchases

Groceries: Unprepared food is not taxed. This includes raw meat, fresh produce, bread, milk, eggs, and canned goods. Hot food from a deli, bakery items sold warm, and prepared salads are taxed.

Medications: Prescription medications are not taxed. Over-the-counter medications like pain relievers and cold medicine are taxed.

Vehicles: Car purchases are taxed at the full rate. The tax is usually collected when you register the vehicle with the Idaho Department of Motor Vehicles, not at the dealership.

Utilities: Electricity, natural gas, and water are not subject to sales tax in Idaho.

Gasoline: Gasoline is not subject to sales tax. Instead, Idaho charges a fuel tax per gallon, which is included in the pump price.

Frequently Asked Questions

Why is the sales tax different in different towns?

Idaho allows cities and counties to add their own local sales tax on top of the 6 percent state rate. Each local government decides whether to add a tax and how much. Ada County adds 1 percent; some rural counties add nothing. The tax you pay depends on where the store is located.

Do I have to pay sales tax on groceries?

No, unprepared food is not taxed in Idaho. Raw meat, fresh vegetables, bread, milk, and canned goods have no sales tax. But prepared food — rotisserie chicken, deli sandwiches, hot pizza — is taxed at the full rate.

Is sales tax included in the price shown on the shelf?

No. The shelf price does not include sales tax. The tax is added at checkout. A $10 item in Boise costs $10.70 after tax (6 percent state plus 1 percent local). The same item in a county with no local tax costs $10.60.

Do I pay sales tax on online purchases?

It depends on the seller. If the online retailer has a physical location in Idaho, they must collect sales tax on your order. If they are based entirely outside Idaho, they may not collect tax. Check your receipt to see if tax was charged.

What is the sales tax on a car purchase?

Cars are taxed at the full state and local rate. The tax is usually collected when you register the vehicle with the Idaho Department of Motor Vehicles, not at the dealership. You will pay tax based on the county where you register the vehicle.