Welcome to our handy guide on Idaho sales tax. We'll walk you through everything you need to know, from the specific sales tax rates in different counties and cities across Idaho to answering some of the most common questions. Plus, we'll guide you on how to efficiently collect and file your sales tax in Idaho.
Sales Tax Rate
Idaho State Tax Commission
What Triggers Sales Tax Nexus in Idaho?Nexus in Idaho is all about your business's presence or activities in the state. Here's how it works:
Physical NexusThis happens when your business has a noticeable physical presence in Idaho. It could be:
Economic NexusEven without a physical presence, if your sales are big in Idaho, you might have economic nexus. Here's Idaho's take:
Affiliate NexusGot a partnership with an Idaho business that helps you make sales? This could create affiliate nexus. If your agreement with an Idaho business leads to over $100,000 in sales or you pay them a commission, you're in this category. To steer clear, you'd need to avoid such agreements or keep sales under that threshold.
Click-Through NexusThis is similar to affiliate nexus but with a lower sales threshold. If you get over $10,000 in sales through Idaho referrals, you're here. To avoid this, don't have these agreements or keep sales from them under $10,000.
Marketplace NexusFor marketplace facilitators like Amazon or Etsy, if you or your affiliates get over $100,000 in sales in Idaho, you've got marketplace nexus. You'd then need to collect and remit sales tax on all Idaho sales.
Got Nexus? Here's What to DoIf any of these apply to you:
Buy a pumpkin for eating, and it’s tax-free. Buy it for decoration, and it’s taxed. In Idaho, it's all about the pumpkin's purpose.
Do You Need a Permit?First, figure out if you need a sales tax permit in Idaho. This usually means having a physical presence or meeting economic nexus requirements in Idaho, like an office or a storage place.
Gather Your InfoBefore you dive into registering, make sure you have:
Register OnlineHead over to the Idaho State Tax Commission's website and fill out the "State Sales Tax Registration" form. This is a quick and easy online process.
Confirmation and DocumentsAfter registering, you'll get a confirmation within 1-2 business days. Then, you'll receive your official documents from the Tax Commission, and your sales tax account will be all set. Remember, once you get your permit, display it where customers can see it. If you have more than one location, you'll get a permit for each.
Cost of Registering for a Sales Tax License in IdahoGood news! There's no fee for getting a seller's permit in Idaho.
Do You Need an EIN?Yes, you'll need a Federal Tax ID Number, or EIN, to register. It's the number the IRS uses to identify your business. If you don't have one yet, you can apply for an EIN on the IRS website.
Other Idaho Agencies You Might Need to Register WithDepending on what your business does, you might need to register with a few more Idaho agencies:
What's Taxable in Idaho?In Idaho, you'll generally collect sales tax on:
Software as a Service (SaaS)Good news! As of 2013, SaaS isn't taxed in Idaho. The same goes for digital subscriptions like music and movies. This is a big win if you're in the digital game.
Who's Off the Hook for Idaho Sales Tax?Certain groups get a pass on sales tax:
Got a Tax-Exempt Customer?
Lost an Exemption Certificate?
Potatoes are tax-free unless they’re prepared. Idaho likes its state vegetable au naturel.
Idaho's Sales Tax TimelinesIdaho has its own rhythm for tax filing. Here’s the lowdown:
Weekend or Holiday Filing?If your filing date lands on a weekend or holiday, Idaho's got your back – you get an extra day.
How to File Your Idaho Sales Tax Return
Oops, Filed Late? Here's What You Might Owe
Snag Some Idaho Tax DiscountsIdaho's not all about taking – they give too! Pay early or file quarterly and get discounts up to 2%. Maintain a good standing for an extra 1% off. Just remember to file on time and pay in full to qualify.
Idaho’s Sales Tax Holidays
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