Effective July 1, 2025, a new Idaho law brings good news for small, individual sellers.
If you’re an Idaho resident running a sole proprietorship and your total gross sales are under $5,000 for the current or previous calendar year, you are now exempt from getting a sales tax permit and collecting Idaho sales tax!
This exemption applies whether you’re selling in-state, out-of-state, or through online marketplaces. This means:
- No sales tax permit required
- No need to collect sales tax on qualifying sales
Keep in mind, there are some exemptions not covered. Sales of vehicles, lodging, alcohol, or admissions are the exemptions.
You Still Must:
- Pay sales tax on everything you buy
- Start tracking sales if they exceed $3,000 annually
- Register when selling at promoter-sponsored events
- Report income on your state tax return
- If your gross sales go over $5,000, you’ll need to register within 30 days and start collecting sales tax immediately.
If you have questions, you can contact the tax commission directly at tax.idaho.gov/smallseller or Call (208) 334-7660 or (800) 972-7660
