Idaho Sales Tax

You must know sales tax rules and regulations if you sell taxable goods in Idaho. You must register for a sales tax permit and collect sales tax on all taxable sales.

Idaho Sales Tax rate is 6%, and local jurisdictions may also impose additional taxes. All Idaho residents must pay sales tax on tangible personal property and certain services, with some exceptions. Retailers must register with the state to collect sales tax and file returns, and they may also need to obtain a seller’s permit. In 2019, the state passed a law affecting online retailers and marketplace facilitators following the Wayfair decision, which set the sales tax collection threshold at $100,000 in sales or more for remote sellers with nexus in Idaho. This nexus threshold applies to both individual sellers and marketplace facilitators who sell on behalf of third-party sellers.

Once a company has registered with the state and begun collecting Idaho sales tax, it must report and remit the collected taxes monthly or quarterly, depending on its filing frequency. Late reporting and remittance will result in penalties. In addition to the state sales tax, many cities and counties in Idaho have their own local sales taxes. Check with a tax professional for details on your local sales and use tax rates. Unlike most states, Idaho does not impose a state use tax on software as a service (SaaS) products.

Idaho Sales Tax Due Dates
Idaho Sales Tax 1

Idaho Sales Tax Due Dates

You must file a sales tax return in Idaho for each reporting period and make a sales tax payment with each filing. The state’s due dates vary by filing frequency and are typically the last day of the month following the end of the period. If a return or payment is filed late, you will be subject to late filing penalties and interest charges. In addition to filing returns and making payments, you must keep accurate records of all of your sales tax collected. These records are used to determine how much sales tax you owe.

If you do not collect sales tax from your customers, or if you fail to remit the collected taxes, you can be held liable for a penalty of 0.5% of the total amount of the taxes due for each month the tax is unpaid, up to a maximum of 25%.

Sales tax laws are complicated and are constantly changing. For many businesses, partnering with a knowledgeable bookkeeper or sales tax automation company is the best way to avoid costly mistakes and ensure compliance.

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