Key figures
Idaho receivables
2026, with sources
Software is outside the base
Idaho’s sales tax is 6%, with local option taxes in some resort cities. What it doesn’t reach is most software: Idaho Code §63-3616 excludes custom programs, electronically delivered software, remotely accessed software and “load and leave” installs from tangible personal property. SaaS sold to Idaho customers is not taxed, and neither are downloads.
Digital books, videos, music and games sold with a permanent right to use are taxable, as is software delivered on physical media. A company selling hardware with its software, or training on physical materials, should look at those lines separately.
Nexus and registration
An out-of-state retailer must hold an Idaho seller’s permit once its sales into Idaho exceed $100,000 in any 12-month period, and at a $10,000 level for sales through retail referral agreements. Sales made only through registered marketplace facilitators are collected by the marketplace.
Example: a SaaS company with $400,000 of Idaho subscription revenue and no hardware has no taxable Idaho sales and nothing to collect. If it starts selling $50,000 of devices into Idaho alongside the software, it should look at the threshold again with the Tax Commission’s seller’s permit guidance.
The federal baseline
This page covers what Idaho adds. The federal rules underneath it apply here too.
Common questions
Is SaaS taxable in Idaho?
No. Idaho Code §63-3616 excludes custom programs, software delivered electronically and remotely accessed software from tangible personal property, so a SaaS subscription sold to an Idaho customer is not subject to Idaho sales tax.
Do we need an Idaho seller’s permit?
Only if you sell taxable goods there. An out-of-state retailer needs an Idaho seller’s permit once its sales into Idaho exceed $100,000 in a 12-month period; a company selling only SaaS makes no taxable Idaho sales to collect on.
Receivables next door
- MTMontana receivablesMontana has no sales tax, so SaaS sold to Montana customers is untaxed at the register; Montana receipts matter through the receipts-only income tax apportionment.
- NVNevada receivablesA 6.85% state sales tax plus county rates, on tangible goods only — SaaS is not taxable. Remote sellers register at $100,000 or 200 transactions.
- OROregon receivablesOregon has no sales tax, so SaaS sold to Oregon customers is untaxed at the register, but Oregon receipts over $1 million carry the 0.57% Corporate Activity Tax.
- UTUtah receivablesUtah taxes SaaS as prewritten software used in Utah, at 4.85% plus local rates. Remote sellers register at $100,000 of Utah revenue; the transaction count is gone.
- WAWashington receivablesWashington taxes SaaS as a retail sale and, since October 2025, IT services and custom software too; remote sellers register at $100,000 of Washington receipts and collect 6.5% plus local tax.
- WYWyoming receivablesWyoming doesn’t tax SaaS, PaaS or IaaS but does tax prewritten software however delivered; remote sellers license once gross Wyoming sales exceed $100,000.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
More of the Idaho guide
- AccountingAccounting and state tax in IdahoCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in IdahoPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- 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.