Sales Tax and Reverse Sales Tax Calculator Idaho

IDAHO [Multidirectional Calculator]
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  • 8.5%
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  • Amount Before Tax ${{amountBeforeTax}}
  • Sales Tax Rate {{SalesTaxRate}}%
  • Amount Of Taxes ${{AmountOfTaxes}}
  • Amount After Taxes ${{AmountAfterTaxes}}



Idaho – ID Sales Tax Calculator: User Guide

Idaho is a US state famous for potatoes, prairies, and the Rocky Mountains and the Great Basin Desert. It is situated in the northwestern region of the United States. The state has the 6th best economy among the 50 states, with a favorable business environment and growth for entrepreneurs, businessmen, and job seekers.

So if you are planning to relocate, expand, or start your business in Idaho, you must know how to deal with Idaho sales taxes. Wherefore, our experts have worked days and nights to you a one-of-its-kind Idaho Sales Tax Calculator along with a comprehensive guide to make your learning effortless.

So let's get started!

Idaho Sales Tax Facts:

  • The general sales tax rate in Idaho levied on the state level is 6%.
  • On the top of state-wide sales tax, many cities and municipalities are also allowed to levy local sales tax ranging from 0% and 3%. However, unlike most of the other state, counties in Idaho doesn't collect sales tax.
  • Sun Valley, Idaho, is among cities that charge the highest combined sales tax rate of 9%.
  • Pocatello, Idaho is among cities that charge the lowest combined sales tax rate of 6%.
  • Prescription Drugs are exempted from sales tax in Idaho. Unfortunately, Groceries aren't exempted.
  • The sale, rental, or lease of tangible personal property and the sale of some services are subject to sales tax in Idaho. Moreover, hotel, motel, and campground accommodations may also be subjected to additional tax.
  • Good purchases by the individuals and companies for resale, improvement, or as raw materials are exempted from Idaho Sales Tax.
  • Consumers buying from online and out of state sellers or retailers without paying sales tax, are required to pay Idaho Use Tax.

How to calculate Sales Tax in Idaho?

Businesses and Sellers who have Nexus are required to pay Sales tax to Idaho (state and local) on the sale, rental, or lease of tangible personal property as well as the sale of some services. They are required to collect, manage, and transfers it to the Idaho State Tax Commission while staying in compliance with state laws and avoid penalties and interest.

The sales tax determined on four factors:

  1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
  2. Location and Products or Services: The sales tax rate varies from product to product and location to location, so you must check the sales tax rate applicable to your product according to the product category, county, and city in Idaho.
  3. Exemptions: Almost all goods are eligible for sales tax regulation. However, products, including Groceries (partially-exempted), prescription medicine, medical devices, and few more, are exempted under Idaho Law. So you should check with Idaho state government as to which goods and services sold in Idaho are subject to sales tax.

To calculate Sales Tax in Idaho, follow the steps below:

Step 1 – Determine your Nexus:

You, as a Business owner, are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the Idaho State. And to determine your Nexus in Idaho, you must have any of the following:

  • A physical location like office, warehouse, plant, retail store, or other places of business.
  • An employee working for you in this state.
  • A stock of goods in the state.
  • Selling, delivering, installing, or taking orders in Idaho through a salesperson, agent, or representative.

Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with Idaho, next is to deduce the Sales Tax rate (State + Local Sales Tax) applicable on your product, for which you can refer the tables below:

Idaho Sales Tax Rates by Location:

The state-wide Sales Tax rate in Idaho is 6%. Besides, many cities levy additional local sales tax on tangible personal property and certain services. However, counties in Idaho don't collect sales tax.

Note:

  • Local Sales Tax rates charged by cities in Idaho may vary according to the type of purchases and location.

Following are the Sales Tax rate on State, County, and city level in Idaho:

Sales Tax Rates(Updated January 2020)
City State Rate City Rate Total Sales Tax
Donnelly 6.00% 1.00% 7.00%
Driggs 6.00% 0.50% 6.50%
Ketchum 6.00% 2.00% 8.00%
Lava Hot Springs 6.00% 2.00% 8.00%
Stanley 6.00% 2.50% 8.50%
Sun Valley 6.00% 2.00% 8.00%

Note:

  • Prescription Drugs are exempted from Idaho Sales Tax. Unfortunately, the food isn't exempted. However, low-income taxpayers are allowed to claim the tax credit on food purchases.


Step 4 – Calculate Sales Tax:

After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you are selling a washing machine on your store in Sandpoint, Idaho, having a net price tag of $250. The amount that a buyer has to pay (including sales tax) on a check out would be:

Manual Method:

Net Price (amount before Tax) of a Washing Machine: $250

Total Sales Tax rate: 1.00% (Sandpoint) + 0.00% (Bonner County) + 6.00% (Idaho State) = 7.00%


Total Sales Tax amount = $250 x 7.00% = $17.5

Gross Price (Amount after Tax) = 250 + 17.5 = $267.5


It means the buyer has to pay for a washing machine on a cash counter, which would be $267.5.


Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

  1. Input the $250 Net Price of a washing machine as Amount Before Tax
  2. Input or select 00% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

idaho-sales-tax-calculator

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product, and the Gross Price of the Product.

But there are also instances when you are required to deduce how much sales tax buyer has actually paid on a product or you may want to check the accuracy of the sales tax indicated on your item's receipt.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Idaho Sales Tax Calculator can perform this calculation like a Pro.


Example:

Your buyer has paid $350 for a Clothes Dryer Machine at your store in Aberdeen, Idaho. Now the buyer is inquiring how much the Clothes Dryer Machine actually cost before the sales tax was added. So you need to follow the steps below to determine the amount before tax (net price) of a Clothes Dryer Machine:

Gross Price (Amount after Tax) of Clothes Dryer Machine: $350

Total Sales Tax rate: 0.00% (Aberdeen) + 0.00% (Bingham County) + 6.00% (Idaho State) = 6.00%


Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

350 = [Net Price x ((6/100) + 1)]

350 = Net Price x 1.06

$330.2 = Net Price


So the original Price (net price) of the Clothes Dryer Machine was $330.2.


Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:

  1. Input the $350 Gross Price of Clothes Dryer Machine as Amount after Tax
  2. Input or select 6.00% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

Also Check: Idaho Paycheck Calculator to Calculate your Paycheck in Idaho State including all taxes and take home pay.

FAQs

Answer: Yes, Idaho State levies 6% of sales tax on the state level. Additionally, many cities and municipalities are also allowed to collect local sales tax ranging from 0% and 3%.

Answer: Idaho State charges 6% of sales tax on all vehicles. Besides, many cities may also levy local sales tax according to the location.

Answer: Services are only taxable if they include parts; else, services are generally not taxed in Idaho.

Answer: Yes, Groceries are charged with a full sales tax of 6% in Idaho on the state level.

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