Yes, Idaho has a sales tax
Idaho charges a sales tax of 6 percent on most retail purchases. This is the statewide rate that applies everywhere in the state. However, many Idaho cities and counties add their own local sales tax on top of the state rate, so your total tax can be higher depending on where you shop.
The combined rate — state plus local — ranges from 6 percent in some areas to as high as 8.5 percent in others. When you buy something at a store, the cashier or checkout system will calculate the tax based on your location, not where the business is based.
Key Takeaways
- Idaho's statewide sales tax is 6 percent, but local taxes can add 0.5 to 2.5 percent depending on your city or county.
- The total tax you pay is determined by where the sale happens, not where the seller is located.
- Groceries, prescription medications, and medical equipment are generally exempt from Idaho sales tax.
- Online purchases from out-of-state sellers may or may not include Idaho sales tax, depending on whether the seller collects it.
How local sales tax works in Idaho
Idaho allows cities and counties to impose their own local sales tax in addition to the 6 percent state rate. Not every city or county uses this option, so the local rate varies widely across the state. Some areas have no local tax at all, while others add 1 percent, 1.5 percent, 2 percent, or more.
To find out what the total rate is in your area, you can check with your city or county clerk's office, or look at your receipt from a recent purchase — the tax rate is usually printed there. The Idaho State Tax Commission also publishes a list of local tax rates by jurisdiction on its website.
Local sales tax revenue typically goes to city or county projects like roads, schools, or public services. When you shop, the store collects both the state and local tax and sends them to the appropriate government bodies.
What is and is not taxed in Idaho
Most items you buy in stores are subject to Idaho sales tax, including clothing, electronics, furniture, and household goods. However, certain categories are exempt or taxed differently.
Groceries and food are generally not taxed in Idaho. This includes items like bread, milk, vegetables, and meat that you buy to prepare at home. Restaurant meals and prepared foods are taxed, though some counties have different rules.
Prescription medications are exempt from sales tax in Idaho. Over-the-counter medicines like pain relievers or cold medicine are taxed. Medical equipment prescribed by a doctor — such as wheelchairs, hearing aids, or diabetic supplies — is typically exempt, but you may need to provide documentation.
Services are generally not taxed in Idaho. If you pay for a haircut, car repair, or plumbing work, sales tax does not explore. However, some services bundled with products — like installation or delivery — may be taxed depending on how the seller structures the charge.
Sales tax on online and out-of-state purchases
When you order something online from a national retailer, the seller may or may not collect Idaho sales tax. Large retailers like Amazon, Walmart, and Target now collect sales tax for Idaho purchases because they have a physical presence in the state or meet other thresholds set by Idaho law.
If you buy from a small out-of-state seller that does not collect Idaho sales tax, you are technically responsible for paying the tax yourself — this is called "use tax." In practice, most individuals do not report use tax on personal purchases, though the law allows Idaho to pursue it. The use tax rate is the same as the sales tax rate in your area.
If you are a business owner buying inventory or materials from out-of-state sellers, you should track these purchases carefully, as use tax rules may explore differently to business transactions.
Tax-free shopping days and exemptions
Idaho does not have an annual tax-free shopping day like some other states do. However, certain organizations and individuals may be exempt from paying sales tax on specific purchases.
Nonprofit organizations, schools, and government agencies can often purchase items tax-free if they provide a resale certificate or tax-exempt status documentation. If you work for one of these organizations, ask your purchasing department whether your purchase qualifies.
Farmers and agricultural businesses may have exemptions on equipment and supplies used directly in farming. Manufacturers may be exempt on equipment used in production. These exemptions require specific documentation and are not automatic — you must provide proof of your status to the seller.
How to find your local sales tax rate
The easiest way to find your exact sales tax rate is to look at a recent receipt from any store purchase in your area. The receipt will show the tax rate applied.
You can also contact your city or county clerk's office directly — they maintain current tax rate information. The Idaho State Tax Commission website has a searchable database of sales tax rates by city and county. If you are moving to a new area or planning a large purchase, checking the rate beforehand can help you budget accurately.
Keep in mind that tax rates can change, though this does not happen frequently. If you are using a rate from more than a year ago, it is worth double-checking with your local government.
Frequently Asked Questions
Does Idaho tax groceries?
No. Groceries purchased for home preparation are exempt from Idaho sales tax. This includes produce, meat, dairy, bread, and pantry staples. Restaurant meals and prepared foods are taxed.
Do I pay sales tax on clothes in Idaho?
Yes. Clothing and shoes are subject to both state and local sales tax in Idaho. There is no clothing exemption.
What is the highest sales tax rate in Idaho?
The highest combined rate is around 8.5 percent in some areas, though this varies by location. Check your specific city or county for the exact rate where you live or shop.
Do I have to pay sales tax on used items?
Sales tax applies to used items sold by businesses, including used cars, used furniture, and used electronics. Private sales between individuals typically do not involve sales tax, though this depends on the circumstances.
Is prescription medication taxed in Idaho?
No. Prescription medications are exempt from sales tax. Over-the-counter medicines and health products are taxed.