Idaho does have a state sales tax

Idaho charges a state sales tax of 6 percent on most retail purchases. This is a statewide rate that applies when you buy tangible goods — things you can touch and take home. The tax is added at the register and collected by the seller, who then sends it to the Idaho State Tax Commission.

However, Idaho's actual sales tax rate in your city or county is usually higher than 6 percent because most cities and counties add their own local sales tax on top of the state rate. Your total rate depends on where you live and shop. For example, a purchase in Boise may have a different total rate than the same purchase in Coeur d'Alene because each city sets its own local rate.

Key Takeaways

  • Idaho's state sales tax is 6 percent, but your total rate is higher because cities and counties add local taxes on top.
  • Food bought at a grocery store is not taxed, but prepared food at restaurants and hot food at delis is taxed.
  • Clothing and shoes are not taxed in Idaho, which is unusual among states.
  • You can find your exact local sales tax rate by entering your address on the Idaho State Tax Commission website or asking a local retailer.

How the state and local rates stack together

When you see a price tag in an Idaho store, the amount you pay at checkout will be higher because of sales tax. The state contributes 6 percent of the purchase price, but your city or county adds more on top of that. Some cities add 1 percent, others add 2 percent or more. A few areas have combined state and local rates above 8 percent.

The Idaho State Tax Commission publishes a list of all local rates by city and county. You can look up your specific area to see the exact combined rate you will pay. This matters most when you are budgeting for a large purchase or comparing prices between different towns.

What is and is not taxed in Idaho

Groceries — food you buy at a supermarket to cook at home — are not taxed in Idaho. This includes meat, produce, dairy, bread, and canned goods. However, prepared food is taxed. If you buy a rotisserie chicken at the deli counter, a sandwich from the deli, or a hot pizza, you pay sales tax on it. The rule is straightforward: if it is ready to eat, it is taxed.

Clothing and shoes are also not taxed in Idaho, which sets it apart from many other states. A pair of jeans, a winter coat, or work boots have no sales tax added. This exemption applies to most apparel, though some specialty items like athletic protective gear may be treated differently.

Services are generally not taxed. If you hire a plumber, electrician, or house cleaner, you do not pay sales tax on their labor. However, if they sell you a physical product — like a part they install — the part itself may be taxed depending on what it is.

What happens when you buy online or from out of state

If you order something online from a seller outside Idaho, you may not see Idaho sales tax added at checkout. However, Idaho law requires you to pay use tax on out-of-state purchases. Use tax is the same rate as sales tax — it is meant to level the playing field between local and online retailers.

Most individual shoppers do not pay use tax voluntarily, and Idaho does not have a straightforward way for consumers to report and pay it on small purchases. Large businesses and regular online buyers are more likely to be tracked. If you are unsure whether a particular purchase should have tax, the Idaho State Tax Commission can answer specific questions.

Who collects the tax and where it goes

The seller — the store, restaurant, or business you buy from — is responsible for collecting sales tax from you and sending it to Idaho. You do not file sales tax yourself as a consumer. The business keeps records of what they collected and sends it to the state on a schedule set by the Tax Commission, usually monthly or quarterly depending on the size of the business.

The state portion (6 percent) goes to the Idaho State General Fund, which pays for schools, roads, and other state services. The local portion goes to your city or county and funds local services like police, fire, libraries, and parks. This is why the rate varies by location — each city and county decides how much local tax to charge.

Finding your exact local sales tax rate

Your combined sales tax rate depends on your address. To find it, visit the Idaho State Tax Commission website and use their sales tax rate lookup tool. You enter your city or zip code, and it shows you the exact rate that applies there. You can also call a local business or your city hall and ask what the current rate is.

Rates can change when a city or county votes to raise or lower its local tax, so if you have not checked in a while, it is worth looking again. The Tax Commission updates its rates regularly, so the website is the most current source.

Frequently Asked Questions

Do I pay sales tax on used items?

Sales tax applies to used goods sold by a business, just as it does to new items. However, if you sell something to a friend or at a garage sale, no sales tax is involved. The tax applies when a retailer or dealer sells to you.

Are prescription medications taxed in Idaho?

No. Prescription drugs are not taxed in Idaho. Over-the-counter medications and vitamins are also not taxed. However, other items you might buy at a pharmacy — like cosmetics, shampoo, or candy — are taxed.

What if a business charges me the wrong tax amount?

If you notice a business charged you an incorrect sales tax rate, you can report it to the Idaho State Tax Commission. Keep your receipt as proof. The business may have made a mistake, or the rate in that location may have changed recently.

Do I have to pay sales tax when I buy a car in Idaho?

Yes. Vehicle purchases are subject to sales tax in Idaho. The tax is calculated on the purchase price and is usually collected when you register the vehicle with the Department of Motor Vehicles, not at the dealership.