Idaho: Sales Tax Handbook
How to file your sales taxes in Idaho
Once your business has an Idaho sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Idaho government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Idaho
If the seller has an in-state location in the state of Idaho, they are legally required to collect sales tax at the tax rate of the area where the buyer is located, as Idaho is a destination based sales tax state.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge the local rate of sales tax from the buyer's location, so long as the seller has tax nexus in the state. It must be noted that while Idaho's statewide sales tax rate is 6%, some areas chose too add additional local taxes.
Sales Tax Collection Discounts In Idaho
While many states allow merchants to keep a small percentage of the sales tax they collect as a collection discount, or compensation for the work put in collecting the tax on behalf of the state, Idaho does not currently allow this.
Your Idaho Sales Tax Filing Requirements
To file sales tax in the state of Idaho, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
In the state of Idaho, all taxpayers are given three options for filing taxes. One is filing online using the online service Autofile. You can also file online at the Idaho State Tax Commission's Taxpayer Access Point (also known as TAP). Payment can also be remitted through either of these online systems. You can also file manually through the mail using the form 850.
Tax payers in the state of Idaho should be aware of late penalties the district applies. The penalty for late filing is either 5% of tax due per month or ten dollars, whichever is larger. The maximum payment is 25%. The late payment penalty is 0.5% of tax due per month that the payment is late. this penalty also has a percentage limit of 25%.
Your Idaho Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period. For a list of this year's actual due dates, see our calendar of Idaho sales tax filing due dates.
Where To File Your Idaho Sales Tax Return:
Filing Your Idaho Sales Tax Returns Online
Idaho supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Idaho allows businesses to make sales tax payments electronically via the internet.Electronic payments are required when the payment that is due is greater than one hundred thousand dollars.
You can process your required sales tax filings and payments online using the official Taxpayers Access Point (TAP) website, which can be found here . You should have received credentials to access your Taxpayers Access Point (TAP) account when you applied for your Idaho sales tax license.
Filing Your Idaho Sales Tax Returns Offline
While it is highly recommended that you file online using the Taxpayers Access Point (TAP) website, it is possible to file your required sales tax reportings offline using Idaho Form 850, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Idaho Sales Tax Filing Address: Idaho State Tax Commission
PO Box 76
Boise, ID 83707-0076
Please note that if you file your Idaho sales taxes by mail, it may take significantly longer to process your returns and payments.
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