Retailers doing business in Idaho get a free Seller's Permit from the Idaho State Tax Commission, and you can apply online through the Idaho Business Registration (IBR) system. Remote sellers need one once their Idaho sales exceed $100,000 in the current or previous calendar year, and sellers who use only registered marketplaces don't need one.
Every retailer doing business in Idaho must apply for a Seller's Permit before operating there. Idaho's sales tax rules treat "Seller's Permit" and "sales tax permit" as the same thing.
Idaho law excludes remotely accessed software from tangible personal property, so SaaS in Idaho generally isn't taxable.
If you have no physical presence in Idaho, you need a Seller's Permit once you cross the Idaho economic nexus threshold: more than $100,000 in sales delivered into Idaho in the current or previous calendar year. Idaho has no transaction-count threshold.
Count your total sales in Idaho:
Once you're over $100,000, Idaho treats you as a retailer engaged in business in the state, and the law requires a permit before you conduct business. Apply as soon as you cross the threshold.
Because the test covers the current or previous calendar year, crossing $100,000 in one year also keeps you over the threshold for the entire next year.
If you crossed the threshold in the past and never registered, a voluntary disclosure agreement can reduce the penalties on back taxes.
Idaho also has click-through nexus. If an Idaho retailer refers customers to you for a commission and those referrals produced more than $10,000 in Idaho sales during the preceding 12 months, Idaho presumes you need a Seller's Permit.
You can rebut that presumption by showing those referrers didn't solicit sales in Idaho for you.
Any physical nexus in Idaho means you need a Seller’s Permit, and there’s no minimum sales threshold. Any of these activities creates physical nexus:
A related business operating in the state can also create sales tax nexus in Idaho.
You don’t need a permit if you sell only through registered marketplace facilitators or qualify for the occasional sale or small seller exemption.
Apply before you start selling. If you can’t wait for the permit to arrive, keep a copy of your application, collect tax from customers, and send it in once your permit and returns arrive.
You don't need a permit if you make two or fewer sales in any 12-month period, hold two or fewer yard sales a year, and don't advertise taxable goods or services. The occasional sales exemption never covers sales at organized events or short-term lodging rentals.
Some Idaho residents don't need a permit. The small seller exemption covers individuals and sole proprietors whose gross sales from all sources are $5,000 or less in the calendar year.
It doesn't apply to corporations, partnerships, or LLCs; sellers with a permanent business location; or sales of vehicles, lodging, alcohol, tobacco, or admissions.
If your sales pass $5,000, you have to apply for a Seller's Permit within 30 days and start collecting tax right away. If they pass $7,500 in the same year, tax is due on all of that year's sales, including the first $5,000.
Idaho's marketplace facilitator law requires marketplaces to collect and send in Idaho sales tax on third-party sales. Whether you still need your own permit depends on where you sell:
The Tax Commission's marketplace-only exception doesn't mention where your inventory is stored, including inventory in an Idaho fulfillment center, as with many Amazon FBA sellers.
Direct sales are a different matter. Maintaining a stock of goods in Idaho counts as physical presence, so if you also sell directly, inventory in Idaho means you need a permit for those sales at any sales volume.
Start by registering your business and any assumed business names with the Idaho Secretary of State. You also need a Federal Employer Identification Number (FEIN) if the IRS requires one for your business, for example, because you have employees.
The online application and the paper Form IBR-1 ask for:
Form IBR-1 requires a Social Security number for every individual listed. If you’re a sole proprietor filing the paper form, list your spouse with their SSN, and have your spouse sign it too.
The registration covers several agencies at once, so it also asks:
Most businesses apply online through the Idaho Business Registration (IBR) system, which also registers you with the Department of Labor and the Industrial Commission if you have employees.
Go to Getting Tax Permits and select Idaho Business Registration (IBR) application.
If you have trouble with the online application, you can print and fill out Form IBR-1, Business Registration Form. Fax it to (208) 334-5364 or mail it to Idaho Business Registration, PO Box 36, Boise, ID 83722-0410.
On the Idaho Business Registration System welcome page, select Create a new account under Begin New Registration.
On Create New Account, choose a username and password and enter your email, then select Ok - Continue Registration. The password must be at least six characters and include an uppercase letter, a lowercase letter, a number, and a special character.
Tip: Each registration has its own username and password. If you stop partway, log back in under Returning to Complete a Registration with the same credentials to finish it.
Follow the prompts and select the sales tax permit, plus any other permits your business needs. The application asks for the business, owner, and Idaho-specific details listed above. There's no fee.
Warning: If you buy an existing Idaho business, Idaho law requires you to withhold enough of the purchase price to cover any unpaid sales tax. Request a Successors' Liability clearance letter before the sale closes, and apply for your own permit. You can't use the previous owner's permit.
Your permit arrives by mail. Display it where it's visible at your business. If you have more than one location, you'll receive a permit for each one.
Once you have your permit, register for a Taxpayer Access Point (TAP) account to file returns and pay. If you haven't filed an Idaho return where you owed tax, TAP mails you a registration code, which can take up to 10 business days to arrive.
An Idaho Seller's Permit is free. Permits are issued without charge, and temporary permits are free as well. There's no renewal fee.
The Tax Commission may require security when it considers it necessary to make sure you comply. It sets the amount.
The cap is the lesser of three times your estimated average monthly tax or $10,000. For habitually delinquent taxpayers, the cap rises to five times the monthly amount, still limited to $10,000.
You'll get your permit in 10 to 15 business days when you apply online. A mailed paper application can take up to four weeks.
If you sell in Idaho only now and then, such as at craft fairs, farmers' markets, or a seasonal stand, you can get a temporary Seller's Permit instead of a regular one. There are two kinds:
You can have up to three temporary permits per calendar year, in any combination. After that, you need a regular Seller's Permit.
You can't get a temporary permit if you sell, lease, or rent vehicles or rent out short-term lodging. Hosts who rent only through short-term rental marketplaces that collect and send in all taxes due don't need a permit.
To apply for the first kind, go to Temporary Sales and Promoters in TAP and choose Seller WITHOUT Event ID. For a single event, get the Event ID and instructions from the event promoter, then choose Seller WITH Event ID.
With a temporary permit, you file and pay within 15 days after the permit expires or the event ends, even if you made no sales.
Twenty-three Idaho resort cities levy a local sales tax on top of the state tax. They include Ketchum, McCall, Sandpoint, and Sun Valley. Some cities tax everything the state taxes, while others limit the tax to lodging, alcohol by the drink, and restaurant food.
Idaho law lets each city contract with the Tax Commission to collect the tax or administer it itself. Contact each city directly with questions about its tax.
For example, Sun Valley has its own local option tax permit application. McCall requires businesses and event vendors within city limits to collect and remit its tax.
Remote sellers registered only because of the $100,000 economic nexus threshold don't collect or remit any local sales tax.
Marketplace facilitators don't collect these city taxes either. If you're based in a resort city and sell only through marketplaces, check with that city about its own registration.
Charge Idaho sales tax at the 6% state rate on taxable sales. If you have a location in a resort city, check with that city about its local tax.
The Tax Commission sets your filing schedule based on how much you sell:
Under the sales tax rules, filers generally need a record of filing and paying on time to move to a less frequent schedule.
You file Idaho sales tax returns online through TAP. Monthly returns are due by the 20th of the following month, and quarterly returns are due within 20 days after the quarter ends.
You have to file every return, even with no sales. Don't include sales made through registered marketplace facilitators that already report them.
A regular Seller's Permit doesn't need to be renewed. It's valid until it's canceled.
If you report $0 in sales for 12 months in a row, the Tax Commission cancels your permit. If your business is seasonal, tell the Tax Commission your closing and reopening dates, and it will suspend your returns while you're closed.
Sales tax registration in other states works differently, and several require periodic renewal.
No. An EIN or FEIN is a federal tax ID from the IRS. The Idaho State Tax Commission issues an Idaho Seller's Permit, which lets you collect Idaho sales tax.
You don't need an FEIN to apply unless the IRS requires one for your business. Sole proprietors can register with their Social Security number.
No. The Seller's Permit lets you make taxable sales and collect tax. To buy goods for resale without paying tax, you give your supplier a completed Form ST-101, Sales Tax Resale or Exemption Certificate.
Idaho retailers enter their nine-digit Seller's Permit number on the form when they buy for resale.
It depends on your business names. Each location receives its own permit, but locations with the same business name share one permit number.
If your locations operate under different business names, you need a separate Idaho Business Registration application and permit number for each name.
Yes, unless you qualify as an Idaho small seller. You can use a regular permit or a temporary one. The occasional sales exemption doesn't apply to sales at organized events, even if you sell only occasionally.
You also have to register for each promoter-sponsored event, using the Event ID the promoter gives you. Small sellers register for the event too, even though they don't need a permit.
No. You don’t need your own permit as long as every sale goes through marketplaces registered with the Tax Commission that collect and send in Idaho tax for you. Keep written verification from each marketplace.
If you add sales through your own website, those sales need a permit once you have nexus, and your marketplace sales still count toward the $100,000 threshold.
Yes, if you've already applied. Keep a copy of your application as proof, collect the correct tax from customers, and send it in when you receive your permit and returns.
Selling without applying can lead to a civil penalty of up to $100 a day after the Tax Commission notifies you.
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