Idaho sales tax for online sellers: nexus, permit and filing

What is the Idaho sales tax rate?

The state rate is 6%, and it is the only sales tax across most of Idaho. A small number of resort cities and special districts add their own local taxes, which are administered locally and not by the state. Idaho taxes groceries at the full rate, which most states do not.

When does an online seller have to collect in Idaho?

You must collect if you have a physical presence in Idaho, such as staff, an office or inventory, or if your sales into Idaho are more than $100,000 in the current or previous calendar year. There is no transaction-count test, and both taxable and exempt sales count. Several guides say sales made through marketplaces also count towards the $100,000, even though the marketplace collects the tax on them; the State Tax Commission's guide for online sellers sets out the detail, so check it if marketplace sales would decide the question.

How nexus works in general is covered in physical vs economic nexus and economic nexus explained.

What if you sell on Amazon, eBay or Etsy?

Idaho requires marketplace facilitators to collect and remit sales tax on the sales they facilitate, so you do not collect on those orders. Your own website and other direct channels remain your responsibility. See marketplace facilitator laws.

How do you register?

Apply online through the Idaho Business Registration system for a regular seller's permit. There is no fee. The permit must be in place before you collect tax.

What are the steps once you have nexus?

1. Confirm nexus

   Check your presence and your sales into Idaho against its threshold.

2. Register before collecting

   With the Idaho tax agency, as set out above.

3. Set up your store

   Charge the correct combined rate for each delivery address and product.

4. File and pay

   On the schedule Idaho assigns, including zero returns where required.

How are returns filed?

Returns are filed on Form 850, online, and are due by the 20th of the month after the period. The Tax Commission assigns monthly, quarterly or annual filing based on the tax you collect. A return is required for every period, even with no sales.

See how to file a sales tax return.

What should marketplace sellers check in Idaho?

Idaho tells marketplace sellers to get written confirmation from each marketplace that it is registered and reporting the seller's Idaho sales. Without that confirmation, the seller is expected to report those sales on its own permit. Marketplaces collect only the state tax, so keep the confirmation with your sales tax records.

What does an example look like?

A seller has $70,000 of Idaho sales through its own website and $50,000 through a marketplace in one year, $120,000 in total. If marketplace sales count towards the threshold, it has passed $100,000 and needs a seller's permit, but it collects tax only on the $70,000 of direct sales, because the marketplace collects on the rest. A seller with the same $70,000 of direct sales and no marketplace sales would be under the threshold.

What else should sellers know?

• Sellers outside the US: the same rules apply wherever the business is based. See selling on Amazon US as a non-resident.
• Late registration: tax you should have collected becomes your own debt. See voluntary disclosure agreements and collected but not remitted.
• Records: keep sales by delivery address, tax collected and any certificates. See exemption certificates and sales tax audits.
• Stopping: returns stay due until the account is closed. See filing frequency and cancelling a sales tax permit.
• Store settings: switch on collection only once you are registered. See Shopify sales tax setup.

This guide is general information. It is not tax or legal advice for your situation.