Sales Tax in Idaho: A Complete Guide for Ecommerce Sellers

Idaho is an SST member state with a 6% flat rate that applies to virtually all Idaho addresses. Counties do not levy sales taxes, and local additions exist only in a handful of resort cities. For most ecommerce sellers, Idaho is one of the simpler states, register once through SST, apply 6% to all Idaho orders, and file monthly through the CSP.

Quick reference

Economic nexus

Idaho’s OR threshold: $100,000 in gross sales OR 200 or more separate transactions into Idaho in the current or prior calendar year. Either condition alone triggers registration.

Idaho enacted its economic nexus rules effective June 1, 2019.

Physical nexus

Physical presence in Idaho creates nexus without any threshold:

• Warehouse, office, or storage facility in Idaho
• Amazon FBA inventory in Idaho fulfillment centers
• Employees, agents, or independent contractors in Idaho
• Sales representatives in Idaho

Registration

Idaho is an SST member state. Register through a Certified Service Provider for simultaneous registration in Idaho and all other SST states at no charge.

Sellers can also register directly with the Idaho State Tax Commission through its online portal (tax.idaho.gov). Registration is free.

Tax rates

State rate: 6%

No county additions: Idaho counties do not levy sales taxes.

Resort city additions: A small number of Idaho resort cities have adopted local option resort taxes:

• Sun Valley: up to 3% resort tax = 9% combined
• McCall: up to 3% resort tax = 9% combined
• Ketchum: resort tax applies

Resort taxes in Idaho are generally limited to tourism-related activities and may not apply to all tangible goods. Sellers shipping physical goods to resort city addresses should confirm whether their product category is subject to the local resort tax.

Most Idaho addresses: 6% state rate only.

What’s taxable

Generally taxable: Electronics, clothing, furniture, sporting goods, toys, most tangible personal property.

Generally exempt:

• Prescription medications
• Food for human consumption (groceries — Idaho broadly exempts food for home consumption)
• Agricultural equipment and supplies
• Manufacturing equipment used directly in production

Notable Idaho rules:

• Clothing: Taxable in Idaho, no clothing exemption
• Digital products: Idaho taxes specified digital products including downloaded software and digital audio/audiovisual works
• SaaS: Idaho taxes remotely accessed software (SaaS) in most circumstances
• Food: Idaho broadly exempts food for home consumption. Prepared food, candy, and soft drinks are taxable

Shipping taxability

Idaho taxes delivery charges when the shipped goods are taxable. When all goods in a shipment are exempt, the delivery charge is also exempt.

Marketplace facilitator rules

Idaho enacted marketplace facilitator legislation effective June 1, 2019. Qualifying marketplace facilitators collect and remit Idaho sales tax on marketplace-facilitated sales.

Remote sellers with no Idaho physical nexus whose only Idaho sales are through marketplace facilitators may not need to separately register. Sellers with Idaho physical nexus must register regardless.

State-specific notes

Near-flat rate for ecommerce: Idaho’s county-free structure and limited resort city additions mean nearly all Idaho ecommerce deliveries land at exactly 6%. This makes Idaho operationally simple, no rate lookup complexity for standard product shipments.

Resort city threshold: Resort taxes in Sun Valley and McCall are primarily targeted at tourism activities. Sellers of physical goods shipping to these addresses should verify whether their specific product category triggers the local resort tax, as it may not apply universally to all retail sales.

SST membership: Idaho’s SST membership and simple rate structure make it one of the faster states to add to a multi-state compliance program.