Idaho's statewide sales tax is 6 percent
Idaho charges a 6 percent sales tax on most retail purchases. This is the base rate that applies across the state. However, your actual tax at checkout may be higher because cities and counties in Idaho can add their own local sales tax on top of the state rate.
The combined rate you pay depends on where you make the purchase. In some Idaho cities, the total sales tax reaches 8 or 9 percent when you add local taxes to the state 6 percent. Before you buy, you can check your specific city or county's rate — most local tax offices post this information online, or you can call the city clerk's office.
Key Takeaways
- Idaho's state sales tax is 6 percent, but your total tax rate includes local additions that vary by city and county.
- Groceries, prescription medications, and medical devices are exempt from Idaho sales tax.
- Services like haircuts, repairs, and professional fees are generally not taxed in Idaho.
- You pay sales tax on tangible goods like clothing, electronics, and furniture at the point of sale.
- Online purchases from out-of-state sellers may not include Idaho sales tax, but you may owe use tax on those items.
What is and isn't taxed in Idaho
Idaho exempts certain items from sales tax. Groceries — food you buy to cook at home — are not taxed. This includes bread, milk, vegetables, meat, and canned goods. Restaurant meals and prepared foods are taxed, but raw ingredients are not.
Prescription medications are exempt. Over-the-counter drugs like cold medicine or pain relievers are taxed as regular goods. Medical devices prescribed by a doctor, such as diabetic supplies or hearing aids, are also exempt.
Most services are not subject to sales tax in Idaho. This includes haircuts, car repairs, plumbing work, accounting services, and dental work. You pay the service provider's fee, but no sales tax is added. The main exception is certain repair and installation services on tangible goods — those may be taxed depending on the situation.
Clothing and footwear are taxed at the full rate. Electronics, furniture, appliances, and most other retail goods are taxed. Gasoline is taxed, though the state also charges a separate fuel excise tax.
Local sales tax rates vary by location
Idaho allows cities and counties to impose their own local sales tax in addition to the state 6 percent. These local rates range from 0 to 3 percent depending on where you live. Boise, for example, has a local rate of 3 percent, making the combined rate 9 percent. Smaller towns may have lower local rates or none at all.
Some counties have a local tax but individual cities within that county do not — or vice versa. This means two towns 10 miles apart can have different total rates. The easiest way to find your exact rate is to search "[your city] sales tax rate" or contact your city or county clerk's office by phone.
How sales tax is calculated at checkout
Sales tax is calculated on the subtotal of your purchase before any discounts are applied. If you buy a $50 item in a location with a 9 percent combined rate, the tax is $4.50, making your total $54.50. If you have a coupon that brings the subtotal to $45, the tax is then calculated on $45.
Most retailers calculate and display the tax automatically at checkout. You see the subtotal, the tax amount, and the final total. Some small businesses or online sellers may calculate it differently, but the standard method is tax on the discounted subtotal.
Sales tax on online and out-of-state purchases
If you buy from an out-of-state online retailer that does not have a physical location in Idaho, that retailer may not charge you Idaho sales tax at checkout. However, Idaho law requires you to pay use tax on those purchases — it is essentially the same rate as sales tax, owed to the state instead of collected by the seller.
Most individual shoppers do not report use tax on their tax returns, and the state does not actively pursue small purchases. However, if you make large purchases from out-of-state sellers regularly, you may want to understand your use tax obligation. You can report use tax on your Idaho income tax return, or contact the Idaho State Tax Commission for guidance on your specific situation.
Large online retailers like Amazon now collect Idaho sales tax on most purchases, so you will see the tax added at checkout. This has become standard for major sellers, though smaller retailers may not.
Special sales tax situations in Idaho
Certain transactions have their own rules. If you trade in an old item toward a new purchase — say, trading in a used car toward a new one — you typically pay sales tax only on the difference between the new item's price and the trade-in value, not on the full price of the new item.
Resale certificates allow businesses to buy goods without paying sales tax if they plan to resell those goods. If you are a business owner, you can obtain a resale certificate from the Idaho State Tax Commission and provide it to your suppliers. The tax is then paid by the end consumer, not by you as the middleman.
Agricultural equipment and certain farm supplies may may have access to for exemptions or reduced rates under Idaho law. If you operate a farm or ranch, the State Tax Commission website lists which items may have access to.
Where to find your local sales tax rate
The Idaho State Tax Commission maintains a database of all local sales tax rates by city and county. You can visit their website and search by location, or call their office during business hours. Your city or county clerk's office can also provide your exact combined rate in seconds.
If you are a business owner or frequent buyer, bookmarking your local rate saves time. Many accounting software programs and point-of-sale systems allow you to enter your location once, and they calculate the correct tax automatically on every transaction.
Frequently Asked Questions
Do I pay sales tax on groceries in Idaho?
No. Food you buy to cook at home — including produce, meat, dairy, bread, and canned goods — is exempt from Idaho sales tax. However, prepared foods like restaurant meals, deli items, and hot food from a grocery store are taxed.
What is the difference between sales tax and use tax?
Sales tax is collected by the seller at the point of sale. Use tax is owed by the buyer on items purchased from out-of-state sellers who did not collect Idaho sales tax. Both are the same rate, but use tax is your responsibility to report and pay to the state.
Can a city charge a different sales tax rate than the county?
Yes. Cities and counties set their local rates independently. You may live in a county with a 2 percent local rate but a city with a 1 percent rate, or vice versa. Your total rate depends on both your city and county location, so check both.
Are services like haircuts and car repairs taxed in Idaho?
No. Most services in Idaho are not subject to sales tax. This includes haircuts, repairs, plumbing, accounting, dental work, and professional fees. You pay the service fee, but no sales tax is added.
Do I have to pay sales tax on prescription medications?
No. Prescription medications are exempt from Idaho sales tax. Over-the-counter drugs and supplements are taxed as regular goods. Medical devices prescribed by a doctor, such as diabetic test strips or hearing aids, are also exempt.