Sales Tax Rules
Idaho imposes a state sales tax rate of 6%, with a maximum combined rate (state plus local) of 9% when local taxes are added. Economic nexus is triggered at $100,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit Idaho sales tax. SaaS and digital software products are generally exempt from sales tax in Idaho. Groceries are subject to sales tax in Idaho.
SaaS Tax Details
SaaS and electronically delivered software are exempt.
Grocery Details
Groceries are taxable, but Idaho provides a grocery tax credit for residents.
What is the sales tax rate in Idaho?
Idaho's state sales tax rate is 6%. When local taxes are added, the maximum combined rate can reach 9%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Idaho?
Idaho requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit Idaho sales tax.
Is SaaS taxable in Idaho?
No. SaaS products are generally exempt from sales tax in Idaho. SaaS and electronically delivered software are exempt.
Are groceries taxed in Idaho?
Groceries are subject to sales tax in Idaho. Groceries are taxable, but Idaho provides a grocery tax credit for residents.
Are digital goods taxable in Idaho?
Yes. Idaho taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Idaho customers should collect sales tax.
Are clothing items exempt from sales tax in Idaho?
Clothing is subject to sales tax in Idaho at the standard state rate.
How often do I need to file sales tax in Idaho?
Idaho requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
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Official Source
Idaho Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.