IdahoIdaho small sellers face sales tax as yearly receipts grow
Eligible Idaho residents can sell covered goods tax-free up to $5,000 yearly, but exceeding $7,500 requires paying tax on all that year's sales.
What it does
Individual Idaho residents with up to $5,000 in yearly sales can sell eligible goods without collecting state sales tax. Goods bought for resale and certain products do not qualify.
Small sellers owe tax on sales above $5,000. If yearly receipts exceed $7,500, they must pay tax on all that year's sales, including the first $5,000.
Each person can hold up to two tax-exempt home yard sales yearly, with vehicle exceptions. Homeowners holding more may qualify as small sellers if annual sales are below $5,000.
Argument forThe exemption could spare eligible Idaho residents the work of collecting and sending in state sales tax on covered small sales.
Argument againstPassing $7,500 in yearly sales could leave small sellers owing tax on earlier sales when they did not collect it from buyers.
More detail
Eligible small sellers do not collect or send in state sales or use tax on covered physical goods. Eligible sellers are individual Idaho residents with no more than $5,000 in total sales receipts in the current calendar year. Companies and partnerships do not qualify. The exemption excludes listed transportation equipment, alcohol, or tobacco, and goods bought for resale or use in products for sale. Sellers cannot permanently use a business location or keep stock while expecting receipts above $5,000. Annual sales above $3,000 require keeping records for at least four years. Income tax filing duties still apply. The law took effect on July 1, 2026.
Small sellers must get a temporary seller's permit and collect and send in tax when annual receipts exceed $5,000. These rules apply to small sellers whose yearly sales receipts exceed the exemption limit. Within 30 days of exceeding $5,000, sellers must apply for the temporary permit and begin collecting and sending in tax on sales above $5,000. Receipts above $7,500 require paying sales and use tax on all sales made during that calendar year. Sellers who reasonably expect sales above $5,000 next calendar year must apply for a regular seller's permit. These rules took effect on July 1, 2026. A temporary permit lasts no longer than the rest of the calendar year.
Each person can hold up to two tax-exempt home yard sales per calendar year, with transportation-related exceptions. The exemption covers sales and purchases of physical goods at home yard sales. Homeowners holding more than two yard sales may qualify under the small-seller rules if total annual sales are below $5,000. The yard-sale exemption excludes aircraft, boats, snowmobiles, recreational vehicles, and off-highway motorbikes. Motor vehicles have separate exemption rules. The law took effect on July 1, 2026.
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Where it stands
- Introduced
- Passed 1st Chamber
- Passed 2nd Chamber
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 30Reported Signed by Governor Brad Little on March 26, 2026 Session Law Chapter 189 Effective: 07/01/2026Became Law
- Mar 26Delivered to Governor at 12:58 p.m. on March 26, 2026To Governor
- Mar 26Returned Signed by the President; Ordered Transmitted to GovernorMinor
- Mar 25Signed by President; returned to HouseMajor
- Mar 25Received from the House enrolled/signed by SpeakerMajor
- Mar 25Reported Enrolled; Signed by Speaker; Transmitted to SenateMajor
- Mar 24Returned from Senate Passed; to JRA for EnrollingMinor
- Vote recorded Read third time in full –. Result: pass.Upper
- Mar 24Read third time in full – PASSED - 34-0-1AYES – Adams, Anthon, Bernt, Blaylock, Burtenshaw, Carlson, Cook, Den Hartog, Foreman, Galloway, Grow, Guthrie, Harris, Hart, Keyser, Kohl, Lakey, Lenney, Lent, Nichols, Okuniewicz, Rabe, Ricks, Ruchti, Semmelroth, Shippy, Taylor, Toews, VanOrden, Ward-Engelking, Wintrow, Woodward, Zito, ZuiderveldNAYS – NoneAbsent and excused – Bjerke(Bjerke)Floor Sponsor - Den HartogTitle apvd - to HousePassed 2nd Chamber
- Mar 18Read second time; filed for Third ReadingMinor
- Mar 17Reported out of Committee with Do Pass Recommendation; Filed for second readingMinor
- Mar 13Introduced, read first time; referred to: Local Government & TaxationMinor
- Mar 13Received from the House passed; filed for first reading
- Mar 12Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required – PASSED - 65-0-5AYES – Alfieri, Barbieri, Beiswenger, Berch, Bingham, Boyle, Bruce, Burgoyne, Cannon, Cayler, Cheatum, Cornilles, Crane(12), Crane(13), Dygert, Egbert, Ehardt, Ehlers, Erickson(Larsen), Fuhriman, Furniss, Galaviz, Gannon, Garner, Green, Hall(Stone), Handy, Harris, Hawkins, Haws, Healey, Hill, Holtzclaw, Hostetler, Leavitt, Manwaring, Marmon, Mathias, McCann, Mendive, Miller, Mitchell, Monks, Nelsen, Palmer, Petzke, Pickett, Pohanka, Price, Rasor, Raybould, Redman, Sauter, Scott, Shepherd, Shirts, Skaug, Tanner(13), Tanner(14), Thompson, Vander Woude, Veile, Weber, Wisniewski, Mr. SpeakerNAYS – NoneAbsent – Church, Mickelsen, Raymond, Rubel, WheelerFloor Sponsor - MonksTitle apvd - to SenatePassed 1st Chamber
- Vote recorded Rules Suspended: Ayes 62 Nays 0 Abs/Excd 8, read in full as required –. Result: pass.Lower
- Mar 12Read second time; Filed for Third ReadingMinor
- Mar 11Reported out of Committee with Do Pass Recommendation, Filed for Second ReadingMinor
- Mar 2Reported Printed and Referred to Revenue & Taxation
- Feb 27Introduced, read first time, referred to JRA for PrintingIntroduced
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