Idaho has a sales tax of 6 percent on most goods

Idaho charges a 6 percent state sales tax on retail purchases. This is a flat rate that applies to tangible goods — items you can touch and take home — in nearly every county. The tax is added at the register and collected by the retailer, who then sends it to the state.

However, Idaho also allows counties and cities to add their own local sales taxes on top of the state rate. These local taxes range from 0 to 3.5 percent depending on where you shop. A purchase in Boise may have a different total tax rate than the same purchase in Coeur d'Alene because of these local additions.

Some items are exempt from Idaho sales tax entirely. Groceries, prescription medications, and medical devices do not carry the tax. Clothing and footwear are also exempt, which is unusual — many states tax apparel. This means your grocery bill and your shoes do not trigger sales tax, but a restaurant meal does.

Key Takeaways

  • Idaho's state sales tax is 6 percent on most goods, but your total tax rate depends on local additions that range from 0 to 3.5 percent.
  • Groceries, prescription drugs, medical devices, clothing, and footwear are exempt from Idaho sales tax.
  • Restaurant meals, prepared foods, and most services are taxed at the full rate in your location.
  • Online purchases from out-of-state sellers may not include Idaho sales tax at checkout, but you may owe use tax when you file your state return.

What is taxed and what is not

Idaho exempts food for home consumption, which covers groceries from supermarkets and farmers markets. But food prepared for when ready eating — sandwiches, pizza, restaurant plates — is taxed. The line is whether the food is ready to eat when you buy it.

Prescription medications and over-the-counter drugs both escape the tax. Medical devices prescribed by a doctor, such as diabetic testing supplies or hearing aids, are also exempt. However, vitamins and supplements that are not prescribed do not receive this exemption and are taxed as regular goods.

Clothing and footwear for personal wear have no sales tax in Idaho. This includes shoes, shirts, pants, hats, and coats. But accessories like belts, scarves, and jewelry are taxed because they fall outside the clothing exemption. Sports equipment and protective gear are also taxed.

Services are generally taxed in Idaho. Haircuts, car repairs, plumbing work, and labor charges all carry the sales tax. Digital products and subscriptions — software, streaming services, e-books — are taxed as well, though the rules can vary by the type of service.

How local taxes change your total rate

Idaho's 6 percent state rate is the floor, not the ceiling. Counties and cities layer on their own sales taxes to fund local schools, roads, and services. Ada County (which includes Boise) adds 1 percent, bringing the total to 7 percent. Kootenai County (Coeur d'Alene) adds 1.5 percent for a total of 7.5 percent.

Some counties add less. Owyhee County has no local addition, so the rate stays at 6 percent. Others go higher — certain cities in Bonner County reach 8.5 percent when you combine state and local taxes. The variation matters when you cross county lines or shop online and need to know what you will actually pay.

Your total rate depends on where the retailer is located, not where you live. If you live in one county but shop in another, you pay that county's combined rate. This is why knowing your local rate matters — it changes what you budget for purchases.

Sales tax on online and out-of-state purchases

Online retailers are required to collect Idaho sales tax if they have a physical presence in the state or meet certain sales thresholds. Large retailers like Amazon, Walmart, and Target collect and remit Idaho tax on orders shipped to Idaho addresses. Smaller sellers may not, depending on their sales volume and business structure.

When a seller does not collect Idaho sales tax at checkout, you may owe use tax on that purchase. Use tax is Idaho's way of capturing tax on goods brought into the state from out-of-state sellers. You report use tax on your state income tax return, though many people do not know this applies to them.

The practical reality is that use tax is rarely enforced for individual purchases. However, if you make frequent large purchases from out-of-state sellers without tax collection, you should understand the obligation exists. Keeping receipts and tracking these purchases is the responsible approach.

Who collects and where the money goes

Retailers collect Idaho sales tax at the point of sale and hold it in trust until they remit it to the state. The Idaho State Tax Commission oversees collection and enforcement. Retailers file returns monthly or quarterly depending on their sales volume and explore for a sales tax permit before they can legally operate.

The state keeps the 6 percent revenue for general operations. Local governments keep the revenue from county and city additions. This is why local rates vary — each jurisdiction sets its own rate to fund its own priorities. A city council vote can raise or lower the local rate, which changes what shoppers pay.

Businesses that fail to collect or remit sales tax face penalties and interest. The state audits retailers to may support compliance, especially high-volume sellers. If you are starting a business in Idaho, obtaining a sales tax permit and understanding your collection obligations is a legal requirement.

How to find your exact local rate

Your total sales tax rate depends on your specific address — sometimes even the street you live on. The Idaho State Tax Commission website has a sales tax rate lookup tool where you enter your zip code or address and see the combined state and local rate for that location.

If you are shopping in a different county, ask the cashier or check the receipt after purchase to see what rate was applied. Online retailers usually show the tax amount before you complete checkout, so you can see the total before you buy.

For businesses, the rate matters for pricing and budgeting. If you are setting prices or calculating costs, use the rate for the location where you will make the sale, not your home address. The Idaho State Tax Commission can also answer questions about specific situations if the lookup tool does not cover your case.

Frequently Asked Questions

Do I pay sales tax on groceries in Idaho?

No. Food for home consumption — groceries from stores — is exempt from Idaho sales tax. However, prepared foods like restaurant meals, deli items ready to eat, and hot foods from a store counter are taxed at the full rate.

What is the sales tax rate in Boise?

Boise is in Ada County, which has a 6 percent state rate plus 1 percent local rate, for a total of 7 percent. However, some areas within Ada County may have different local rates, so check the Idaho State Tax Commission lookup tool for your exact address.

Do I owe tax on clothes and shoes?

No. Clothing and footwear for personal wear are exempt from Idaho sales tax. This includes everyday items like shirts, pants, shoes, and coats. Accessories like belts and jewelry are taxed, and sports equipment is also subject to tax.

Do I have to pay sales tax on online purchases from out-of-state sellers?

Large online retailers collect Idaho sales tax automatically. Smaller sellers may not, depending on their sales volume. If tax is not collected at checkout, you may owe use tax on your state income tax return, though enforcement for individual purchases is rare.

Can a city change the sales tax rate?

Yes. Cities and counties set their own local sales tax rates within state limits. A local government can raise or lower its rate through a vote, which changes the total tax shoppers pay. Changes usually take effect on a specific date announced in advance.