Key figures
Idaho payables
2026, with sources
1099s
Idaho wants a copy of each 1099-NEC issued for services performed in Idaho, filed with the Tax Commission alongside Form 96 or a federal Form 1096 by the last day of February. Payments to an Idaho resident for work done elsewhere aren’t covered by that rule; payments to a nonresident for work done in Idaho are.
Example: a startup pays a Coeur d’Alene designer $8,000 in 2026 and a Seattle contractor who spends a week on site in Boise. Both 1099-NECs reflect services performed in Idaho, so both go to the Tax Commission as well as the IRS.
Contractors
Idaho’s Industrial Commission looks at contract workers case by case: a written or verbal contract does not settle whether the worker is an employee for workers’ compensation. If a contractor is reclassified, the company is exposed to uninsured-employer penalties and personal liability for an injury, on top of back unemployment and withholding.
Use tax
Idaho’s use tax is 6%, owed on taxable goods used in Idaho when the seller didn’t charge at least 6% sales tax. Because Idaho excludes electronically delivered and remotely accessed software from tangible personal property, the usual startup stack of SaaS tools isn’t subject to it; hardware and equipment shipped from out of state are.
Deadlines
- Last day of FebruaryAnnual information return with 1099-NEC for services performed in IdahoForm 96 (or federal Form 1096)
- Set by the Tax Commission each yearAnnual withholding report, with W-2s and any 1099s showing Idaho tax withheldForm 967
The federal baseline
This page covers what Idaho adds. The federal rules underneath it apply here too.
Common questions
Do we file 1099s with Idaho?
If the 1099-NEC was for services performed in Idaho, yes: Idaho requires it, with Form 96 (or a federal Form 1096) by the last day of February. 1099s with Idaho income tax withheld also go with Form 967.
Do we owe Idaho use tax on our software subscriptions?
Not on SaaS or downloaded software: Idaho excludes electronically delivered, remotely accessed and custom software from tangible personal property. Use tax at 6% applies to taxable goods — laptops, furniture, boxed software — bought from a seller that didn’t charge Idaho tax.
Payables next door
- MTMontana payablesMontana wants Forms 1099 on federal due dates, has no sales or use tax on purchases, and expects contractors to hold an Independent Contractor Exemption Certificate.
- NVNevada payablesNo state 1099s and no contractor withholding. What reaches payables in Nevada is use tax on tangible goods bought without Nevada tax.
- OROregon payablesOregon has no sales or use tax, but every 1099 for an Oregon recipient is filed directly with DOR through iWire, and individual contractors are reported as new hires within 20 days.
- UTUtah payablesUtah wants 1099s that show Utah withholding by Jan 31, has no contractor withholding, and charges use tax on software, SaaS included, used in Utah.
- WAWashington payablesWashington has no state 1099 filing, but it taxes much of what startups buy — software, SaaS and since October 2025 IT services — and tests contractors twice, for UI and workers’ comp.
- WYWyoming payablesWyoming has no state 1099 filing; use tax applies to downloaded and boxed prewritten software but not to SaaS, PaaS or IaaS, which Wyoming doesn’t tax.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the Idaho guide
- AccountingAccounting and state tax in IdahoCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in IdahoSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in IdahoWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in IdahoRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in IdahoCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.