Idaho Sales Tax on Software and Digital Products Idaho: Sales Tax Handbook

Idaho:

Are Software and Digital Products subject to sales tax?

While Idaho's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Idaho, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Idaho.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Idaho.

Canned Software - Downloaded
EXEMPT
In the state of Idaho, any electronically delivered, remotely accessed (for instance, by cloud), or any """"load and leave"""" software is considered to be exempt.

Custom Software - Delivered on Tangible Media
EXEMPT
Sales of custom software - delivered on tangible media are exempt from the sales tax in Idaho.

Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in Idaho.

Customization of Canned Software
EXEMPT
In the state of Idaho, if charge is separately stated and the customization is prepared specifically for a customer, it is considered to be exempt.

Digital Products
TAXABLE
In the state of Idaho, any digital music, digital books, digital videos, and digital games are considered to be taxable no matter how the title, possession, or right to use is given to the purchaser.



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Source: http://www.salestaxhandbook.com/idaho/sales-tax-taxability/software-and-digital-products