Idaho has a sales tax of 6 percent on most purchases

Idaho charges a 6 percent state sales tax on retail goods and some services. This is a flat rate across the entire state. However, cities and counties can add their own local sales taxes on top of the state rate, so your total tax at checkout depends on where you live or shop. Some counties add 1 to 3 percent more, meaning your final rate could be anywhere from 6 to 9 percent.

The state does not tax groceries, prescription medications, or medical devices. These exemptions mean your food bill at the supermarket has no sales tax, but prepared food — like restaurant meals or deli items — is taxed at the full rate.

Key Takeaways

  • Idaho's state sales tax is 6 percent, but local taxes can add 1 to 3 percent depending on your county or city.
  • Groceries and prescription medications are not taxed, but restaurant food and prepared items are.
  • Services like haircuts, repairs, and professional fees are generally not subject to sales tax in Idaho.
  • Online purchases from out-of-state sellers may or may not have Idaho sales tax applied, depending on the seller's location and business structure.

How local taxes change your total rate

While the state rate is always 6 percent, your actual sales tax depends on where the sale happens. Ada County (which includes Boise) adds 1 percent, bringing the total to 7 percent. Canyon County adds 1 percent as well. Other counties add different amounts — some add nothing extra, while others add up to 3 percent.

Cities within those counties may also have their own local taxes. This means two stores in different parts of the same county could charge different total rates. Before moving to a new area or making a large purchase, check your specific city or county rate with the Idaho State Tax Commission or your local tax assessor's office.

What is and is not taxed in Idaho

Idaho taxes most retail goods — clothing, electronics, furniture, and household items all carry the full sales tax. Services like haircuts, car repairs, plumbing, and accounting are generally not taxed. Medical services and prescriptions are exempt. Utilities (electricity, water, gas) are not subject to sales tax.

Prepared food is taxed, but raw groceries are not. This means a sandwich from a deli counter is taxed, but a loaf of bread from the shelf is not. Candy and soda are taxed because they are considered prepared or non-essential food items. Seeds and plants for growing food are exempt.

Online and mail orders from outside Idaho

If you order from an out-of-state seller that has no physical location in Idaho, Idaho sales tax may not be charged at checkout. However, many large online retailers now collect Idaho sales tax even when they ship from out of state, because they meet Idaho's threshold for remote sellers. Amazon, for example, collects Idaho sales tax on most orders.

If you buy from a small seller with no Idaho presence and no sales tax is collected, you may owe use tax on that purchase when you file your Idaho income tax return. Use tax is the same rate as sales tax and applies to goods you bring into the state or have shipped to you. Most people do not report use tax, but it is technically owed.

Who collects and where the money goes

Retailers collect sales tax at the point of sale and send it to the Idaho State Tax Commission. The state keeps the 6 percent portion. Local taxes go to the city or county that imposed them. These funds support schools, roads, emergency services, and other local government operations.

Businesses are responsible for collecting the correct rate based on the customer's location. If you are charged the wrong rate, contact the retailer first. If the error is not corrected, you can report it to the Idaho State Tax Commission.

Sales tax on vehicles and large purchases

Vehicle sales are taxed in Idaho. When you buy a car, truck, or motorcycle, sales tax is calculated on the purchase price and collected at the time of sale or when you register the vehicle. The rate is the same as for other goods — 6 percent state tax plus any local tax.

If you trade in a vehicle, the sales tax is calculated on the net price (the sale price minus the trade-in value), not the full sale price. This can reduce your tax bill on a vehicle purchase. Keep your trade-in documentation to prove the value.

Frequently Asked Questions

Does Idaho tax groceries?

No. Unprepared groceries — bread, milk, vegetables, meat, canned goods — are not taxed in Idaho. Prepared foods like deli sandwiches, hot pizza, and restaurant meals 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 tax, for a total of 7 percent. Some Boise neighborhoods may have additional local taxes, so confirm your exact rate with the Ada County Assessor's office.

Do I owe sales tax on items I buy online from out of state?

If the seller collects Idaho sales tax, no additional tax is owed. If no tax was collected and the seller has no Idaho presence, you may owe use tax on your Idaho income tax return. Most online retailers now collect the tax automatically.

Are services like haircuts and car repairs taxed?

No. Most services in Idaho are not subject to sales tax. Haircuts, repairs, professional fees, and labor are generally exempt. However, any tangible goods sold with the service (like hair products or car parts) may be taxed.

What happens if a store charges me the wrong sales tax?

Ask the store to correct it. If they do not, contact the Idaho State Tax Commission with your receipt and the store's location. The commission can investigate and may support the correct rate is charged going forward.