Idaho's sales tax rate and what it covers
Idaho has a state sales tax of 6 percent, which applies to most goods you buy in stores. However, your total sales tax bill depends on where you live, because Idaho cities and counties add their own local sales taxes on top of the state rate. Your final tax can range from 6 percent to just over 8 percent depending on your location.
The state tax applies to tangible items—things you can touch and take home. Groceries for home use are exempt, which means you do not pay sales tax when you buy food to cook at home. Prescription medications are also exempt. But prepared food, restaurant meals, and food you eat on premises are taxable.
Services are generally not taxed in Idaho. If you hire a plumber, electrician, or contractor, you typically do not pay sales tax on their labor. However, if they sell you materials as part of the job, those materials may be taxable depending on the specifics of the transaction.
Key Takeaways
- Idaho's state sales tax is 6 percent, but your actual rate is higher because cities and counties add local taxes, bringing the total to between 6 and 8 percent.
- Groceries for home cooking are not taxed, but restaurant meals and prepared foods are taxed at the full rate.
- Prescription medications are exempt from sales tax, but over-the-counter drugs and vitamins are taxable.
- You can find your exact local sales tax rate by entering your address on the Idaho State Tax Commission website or asking at a local business.
How local sales taxes add to the state rate
Idaho allows cities and counties to impose their own local sales taxes on top of the 6 percent state rate. Ada County (which includes Boise) adds 1 percent, bringing the total to 7 percent. Other counties and cities have different rates. Some areas have no local tax at all, while others add up to 2 percent or more.
The local tax you pay depends on where the sale happens, not where you live. If you buy something in a city with a higher local tax rate, you pay that rate at checkout. The business collects all the tax—state and local combined—and sends it to the appropriate government offices.
You can find your exact local sales tax rate by visiting the Idaho State Tax Commission website and using their rate lookup tool, or by calling your city or county assessor's office. Knowing your rate matters if you are budgeting for a large purchase or trying to understand your receipt.
What items are taxed and what are exempt
Most physical goods are taxable: clothing, electronics, furniture, tools, and household items all have sales tax applied at checkout. However, certain categories are exempt to reduce the tax burden on essentials.
Food for home consumption—raw ingredients, packaged goods, frozen meals you prepare yourself—is not taxed. But the moment food is prepared for when ready consumption, it becomes taxable. A sandwich from a deli counter, a coffee from a café, or a rotisserie chicken from a grocery store bakery all have sales tax. Alcohol and tobacco products are taxed at the full rate.
Prescription medications dispensed by a licensed pharmacist are exempt. Over-the-counter medicines, vitamins, and supplements are taxable. Medical equipment like wheelchairs or hearing aids may be exempt under certain conditions, but you should ask the seller or contact the Idaho State Tax Commission to confirm before purchase.
Sales tax on online and out-of-state purchases
If you order something online from a retailer that has a physical presence in Idaho—a warehouse, store, or office—that retailer must collect and send Idaho sales tax. Large national retailers like Amazon, Walmart, and Target collect Idaho sales tax on orders shipped to Idaho addresses.
If you buy from a small out-of-state seller with no Idaho presence, they are not required to collect Idaho sales tax at checkout. However, Idaho law requires you to pay "use tax" on those purchases—it is the same rate as sales tax, and you owe it even though the seller did not collect it. Most people do not pay use tax on individual purchases, but it is technically your responsibility. If you run a business or make frequent large purchases from out-of-state sellers, you should understand your use tax obligations.
The practical effect is that most online purchases to Idaho addresses now have sales tax collected, because the major retailers do so. Smaller sellers may not, and the difference is usually small enough that most buyers do not pursue it further.
How sales tax appears on your receipt
When you check out at a store, the cashier or register shows you the subtotal (the price before tax), then adds the sales tax, and shows you the total you owe. The receipt breaks down the state and local portions separately so you can see exactly how much tax was charged.
If you are buying multiple items with different tax statuses—for example, groceries (no tax) and a magazine (taxed)—the register calculates tax only on the taxable items. You do not need to do anything; the system handles it automatically.
Keep your receipt if you need to return an item. The store uses it to refund the correct amount, including the tax you paid. If you lose the receipt, most stores can look up the transaction if you have your credit or debit card information.
Sales tax for businesses and resellers
If you own a business in Idaho, you need a sales tax permit from the Idaho State Tax Commission. You collect sales tax from customers and send it to the state monthly or quarterly, depending on your sales volume. The commission tells you when and how to file based on your business size.
If you are a reseller—you buy goods to resell them—you can provide a resale certificate to your supplier so you do not pay sales tax on your inventory. You collect tax from your customers instead. This prevents the same item from being taxed twice (once when you buy it, again when your customer buys it from you).
Businesses must keep records of sales and taxes collected for at least three years in case of an audit. The Idaho State Tax Commission provides guidance on record-keeping and filing requirements on their website.
Frequently Asked Questions
Do I pay sales tax on groceries in Idaho?
No. Groceries for home use—raw ingredients, packaged foods, frozen meals you prepare yourself—are exempt from sales tax. However, prepared foods like deli items, hot foods, and restaurant meals are taxed at the full rate.
What is the sales tax rate in my city?
Idaho's state rate is 6 percent, but your total depends on local taxes. Use the Idaho State Tax Commission's rate lookup tool on their website, or call your city or county assessor's office with your address. Rates vary from 6 to just over 8 percent across the state.
Do I owe sales tax on items I buy online from out-of-state sellers?
If the seller has no physical presence in Idaho, they are not required to collect tax. However, Idaho law says you owe use tax—the same rate as sales tax—on those purchases. Most individual buyers do not pay it, but it is technically your responsibility.
Are prescription medications taxed in Idaho?
No. Prescription medications dispensed by a licensed pharmacist are exempt from sales tax. Over-the-counter medicines, vitamins, and supplements are taxed at the full rate.
How often do businesses have to send sales tax to the state?
It depends on your sales volume. The Idaho State Tax Commission sets filing schedules—some businesses file monthly, others quarterly. You will receive a notice telling you when to file based on your business size and sales history.