Idaho Sales Tax Exemptions / Tax Free Items Idaho: Sales Tax Handbook

Idaho:

What purchases are exempt from the Idaho sales tax?

While the Idaho sales tax of 6.00% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Idaho.

Sales Tax Exemptions in Idaho

In Idaho, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.

Several examples of exemptions are prescription drugs, some groceries, truck campers, office trailers, and transport trailers.

Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Idaho:


Clothing

  6.%

Groceries

  6.%

Prepared Food

  6.%

Prescription Drugs

  EXEMPT

OTC Drugs

  6.%

These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.

Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":


Is candy taxable in Idaho? Candy IS considered a grocery in Idaho
Is soda taxable in Idaho? Soda IS considered a grocery in Idaho

Are services, shipping, installation, etc taxable in Idaho?

The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Idaho sales tax see the Idaho sales taxability FAQ page.


Other tax-exempt items in Idaho

This table lists a number of additional categories of goods and services that are exempt from Idaho's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Idaho.

Category Exemption Status
Amazon Purchases
Products on Amazon.com EXEMPT
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel EXEMPT *
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Occasional Sales
General Occasional Sales EXEMPT
Optional Maintenance Contracts
General Optional Maintenance Contracts EXEMPT *
Services
Janitorial Services EXEMPT
Software and Digital Products
Canned Software - Downloaded EXEMPT *
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Customization of Canned Software EXEMPT *
Trade-Ins
General Trade-Ins EXEMPT *

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/idaho/sales-tax-exemptions