The low tax burden in Idaho extends to the sales tax as well. All counties and localities in the state are subject to the same 6% sales tax rate. In Idaho, some items are excluded from paying sales tax. What items are exempt? and other pertinent queries will be covered in this article.
Let’s start by discussing the goods that are exempt from Idaho’s sales tax. Groceries, prescription drugs, and various medical equipment are among of the most popular excluded products. Newspapers, some services including legal and accountancy advice, and agricultural goods are also excluded from sales tax.
It’s crucial to remember that not all groceries are free from paying sales tax. Sales tax is still applicable to foods that have been prepared, such as restaurant meals or hot deli items. Similarly, if medical supplies and prescription drugs are viewed as luxury or non-essential commodities, they might not be exempt.
The majority of commodities in Idaho are taxable, unless they are expressly exempt, according to the list of goods that are subject to sales tax. This covers things like apparel, electronics, and automobiles. Sales tax is also charged on additional services like haircuts and auto repairs.
Let’s talk about whether Idaho residents must pay sales tax on homes now. You do not pay sales tax on a house in Idaho, is the response. Instead, you will be accountable for paying property taxes depending on your home’s assessed worth.
And finally, does Idaho have a state income tax? Idaho does indeed have a state income tax, to be precise. Depending on your income level, the state has a progressive income tax system with rates ranging from 1.125% to 6.925%.
Despite Idaho’s comparatively low 6% sales tax rate, not all items are exempt from paying the tax. When making purchases, it’s critical to understand which things are exempt and which are not. Additionally, homes in Idaho are paid for by property tax rather than sales tax, although the state does have a state income tax system.