What Items are Exempt from Sales Tax in Idaho?

For many US states, including Idaho, the sales tax is a major source of funding. The majority of products and services sold inside the state of Idaho are subject to a 6% sales tax. In Idaho, though, some things are excluded from paying sales tax. This article will cover the topics of what is exempt from Idaho’s sales tax, what transactions are subject to use tax, what taxes Idaho doesn’t have, and whether used car sales are subject to sales tax. Items Exempt from Idaho’s Sales Tax

Certain goods are free from sales tax in the state of Idaho. These things include food, prescription medications, medical equipment, and a few more things related to medicine. As of 2021, the state of Idaho will not charge a sales tax on goods, so you can purchase foods like bread, milk, eggs, and meat free of charge. In addition, medical equipment like wheelchairs and crutches is exempt from sales tax.

Clothing is another item in Idaho that is free from sales tax. The majority of apparel products under $100 are exempt from sales tax. All sorts of apparel, including winter jackets, boots, and shoes, are excluded from this rule. However, the 6% sales tax is applied to any apparel item that costs more than $100. Purchases Exempt from Use Tax

Use tax is charged in Idaho on out-of-state purchases that are carried into the state for consumption. Similar to sales tax, usage tax is levied on the consumption of goods and services as opposed to their sale. For instance, you would be required to pay use tax on a computer if you bought it in Oregon and used it in Idaho. Vehicles, yachts, and aircraft are some other purchases that require use tax. Idaho Has No

There are a number of taxes that Idaho does not have in addition to use tax and sales tax exemptions. These include inheritance tax, estate tax, and personal property tax. You won’t be required to pay taxes on intangible assets like stocks and bonds because Idaho does not have a state-level intangible personal property tax. Sales Tax on Used Automobiles

In Idaho, used car sales are subject to sales tax. The used car sales tax rate is determined by the car’s purchase price. For automobiles costing less than $2,500, the tax rate is 6%; for vehicles costing more than $2,500, the tax rate is 6% plus a $50 registration fee.

In conclusion, the majority of products and services purchased inside the state of Idaho are subject to a 6% sales tax. The majority of clothing products that cost less than $100 as well as groceries, prescription medications, medical equipment, and most other things are exempt from sales tax. While Idaho does not have a personal property tax, an estate or inheritance tax, purchases acquired outside of the state that are then brought into the state for use are subject to use tax. Last but not least, used car sales in Idaho are subject to sales tax.