Idaho Sales Tax Guide for Businesses
- Sales Tax Rate
- Local Taxes
- State Tax Commission
- Tax Line
We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Idaho, and if so, how best to tackle the sales tax situation in the Gem State.
After reading this, you’ll know:
- Do you or don’t you need to collect Idaho sales tax?
- Which customers do you collect from?
- How much do you collect?
- What do you do with all the sales tax you’ve collected?
- Way more than you probably ever wanted to know about Idaho sales tax!
Do you have sales tax nexus in Idaho?
Good news! You only have to begin thinking about Idaho sales tax if you have sales tax nexus in Idaho.
“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.
Idaho considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- an office, warehouse, sales or sample room, or storage place
- a stock of goods
- renting or leasing property (other than real property) to a customer who uses the property in Idaho
- business servicing tangible personal property in Idaho
- a salesman, agent, or representative who comes to Idaho to sell, deliver, install, or take orders. (It doesn’t matter whether the salesman, agent, or representative is your employee, or whether he lives in Idaho or another state.)
You can click here to read exactly what the Idaho Department of Revenue (Idaho’s taxing authority) has to say about what constitutes sales tax nexus in Idaho.
Is what you’re selling even taxable?
You’ve probably read this far because you realized you have sales tax nexus in Idaho. Your next step is to determine if what you’re selling is even taxable.
Services in Idaho are generally not taxable. So if you’re a freelance writer or a plumber, you’re in luck and you don’t have to worry about sales tax. But watch out – if the service you provide includes creating or manufacturing a product, you may have to deal with the sales tax on products.
Tangible products are taxable in Idaho , with a few exceptions such as prescription drugs.
So if you sell toys, then charge sales tax to your Idaho customers.
But if you’re a graphic designer, don’t charge sales tax to your Idaho customers.
If you have sales tax nexus in Idaho and your products are taxable, your next step is to register for a sales tax permit.
How to Register for a Sales Tax Permit in Idaho
Sellers with sales tax nexus in Idaho must apply for an Idaho sales tax permit.
How to Collect Sales Tax in Idaho
So you’ve determined that you have sales tax nexus in Idaho and what you’re selling is taxable. And you’re all set and registered for your Idaho sales tax permit.
The next step is to determine how much sales tax to collect.
Idaho is a destination-based sales tax state for in-state sellers. So if you live and run your business in Idaho you would charge sales tax at the rate of your buyer’s ship-to location.
Fortunately, the sales tax rate in Idaho is generally just the state rate of 6%, even though certain resort towns are allowed to add on an additional local sales tax rate.
If you are not based in Idaho but have sales tax nexus in Idaho for some reason such as having a salesperson or inventory in a warehouse there, then you are only required to charge the 6% “use tax” rate to your Idaho buyers. (“Use tax” is very similar to sales tax but charged by sellers based out-of-state.)
Should you collect sales tax on shipping charges in Idaho?
As long as you separately state the shipping charges on your bill to your customer, you do not have to charge sales tax on shipping.
But if you include shipping in the price of the product you sell the customer, then shipping is considered part of the taxable transaction and Idaho declares that you must collect sales tax on shipping.
Read a full explanation of sales tax on shipping in Idaho here.
|8||Twin Falls||45,981||Twin Falls||6.00%|
Caption: The Top 20 Most Populous Cities in Idaho and their Sales Tax Rates
When are Idaho Sales Tax Returns Due?
Idaho sales tax returns are always due the 20th of the month following the reporting period. You’ll be assigned a sales tax filing frequency when you apply for your Idaho sales tax permit. You’ll file either monthly or quarterly.
To break it down:
2016 Idaho Monthly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|January||February 22, 2016*|
|February||March 21, 2016*|
|March||April 20, 2016|
|April||May 20, 2016|
|May||June 20, 2016|
|June||July 20, 2016|
|July||August 22, 2016*|
|August||September 20, 2016|
|September||October 20, 2016|
|October||November 21, 2016*|
|November||December 20, 2016|
|December||January 20, 2017|
*indicates a due date pushed back due to a weekend or holiday
2016 Idaho Quarterly Sales Tax Filing Due Dates
|Taxable Period||Due Date|
|Q1 (Jan - Mar)||April 20, 2016|
|Q2 (Apr - Jun)||July 20, 2016|
|Q3 (Jul - Sep)||October 20, 2016|
|Q4 (Oct - Dec)||January 20, 2017|
Click here for a chart of Idaho sales tax filing due dates for 2016.
How to File Sales Tax in Idaho
When it comes time to file sales tax in Idaho you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
We’ll walk you through these steps.
How to Calculate How Much Sales Tax You Owe in Idaho
Calculating how much sales tax you should remit to the state of Idaho is easy with TaxJar’s Idaho sales tax report.
All you do is connect the channels through which you sell – including Amazon, eBay, Shopify, Square and more – and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Idaho sales tax return will be waiting for you in TaxJar. All you have to do is login!
How to File and Pay Sales Tax in Idaho
You have three options for filing and paying your Idaho sales tax:
- File online – File online at the Idaho State Tax Commission’s Taxpayer Access Point (TAP). You can remit your payment through their online system.
- File by mail – You can use Form 850 and file and pay through the mail. Idaho will mail you a personalized Form 850.
- AutoFile – Let TaxJar file your sales tax for you. We take care of the payments, too. You’ll never have to worry about spreadsheets, calculations or filling out complex sales tax returns. Just $19.95/month per return, per state.
- Late Filing Penalty – Greater of 5% of tax due per month (maximum 25%) or $10
- Late Payment Penalty – 0.5% of tax due per month (maximum 25%)
Other penalties for fraud or serial offenses include higher penalties and even criminal charges.
And that’s it. You’ve mastered Idaho sales tax filing! Now that sales tax is out of the way, you can get back to what you do best – running your business.
Idaho Sales Tax Resources
For more about Idaho sales tax, check out the Idaho section of the TaxJar blog.