If your limited liability company (LLC) sells physical products or certain types of services, you will need to collect and pay sales tax. In Idaho, the first step is visiting the Idaho State Tax Commission website and registering for sales tax in order to acquire a seller’s permit, or sales tax permit.
What Products and Services Are Subject to Sales Tax in Idaho?
Sales of tangible property are subject to sales tax in Idaho. Admissions to certain recreational events, hotel accommodations, and labor to produce tangible property are also taxable. Most drugs and medical equipment are exempt from sales tax in Idaho.
Idaho Sales Tax Rate
The sales tax rate in Idaho is 6%.
Five states have no sales tax. Colorado has the lowest sales tax at 2.9%, while California has the highest rate at 7.25%.
How to Register for Idaho Sales Tax
In Idaho, acquire a seller’s permit by following the tax commission’s detailed instructions for registration:
- Go to the Idaho business registration website.
- Register for an account.
- Fill out the business registration form.
- There is no fee to register your business for taxes in Idaho.
Use our Sales Tax Calculator to calculate taxes and total purchase amount.
In Idaho, and across the country, collecting sales tax is a must if you want to avoid potentially heavy fines and even closure. It’s crucial that you follow your state’s laws, and you might consider consulting with an accountant or tax attorney to make sure you’re in full compliance.