Idaho: The Gem State

Idaho is located in the Northwest of the USA and borders Canada. Almost half of the 215,000 km² are covered by forests. According to ehuacom, the Gem State is the 14th largest in the country by area. With 1.7 million people, it is one of the sparsely populated states in the USA.

Idaho’s economy is made up of a mix of traditional and emerging industries. This combination ensures stability, collaboration and innovation. If this mix appeals to you, Idaho is a good location for your business.

Idaho is an attractive place to invest. Economic growth is steady and benefits from a stable business environment. Technological manufacturing accounts for the largest portion of Idaho’s gross domestic product. Investments in this sector continue to be successful. The technology sector is also well represented. Today, more than 800 software companies are based in Idaho. In terms of patents per capita, the state has long held a top position. Idaho’s vibrant corporate culture is recognized as one of the best in the country.

Idaho Location Map

THE STATE AS A HELPING HAND

Low taxes, “A Top-10 Most Tax Friendly State” (CNBC), a balanced state budget and few regulations ensure that Idaho is ranked sixth in “Best State Economy” by US News. Things are looking even better for the projected growth rate for jobs. The Bureau of Labor Statistics put this in a very strong third place in a US-wide comparison. GDP shows strong, continuous growth.

Idaho likes to advertise that it prefers to stand by companies rather than get in the way. The award as “Most Friendly State for Small Business” (The Kauffman Foundation and Thumbtack.com) can be used as proof of this. A fourth place in the “Best State for Cost of Doing Business” (CNBC) category is another indication of this. The state succeeds wonderfully in transferring its general friendliness to the corporate climate. Entrepreneurs do not face unnecessary restrictions and requirements and can fully focus on growing their business. Ranked fifth in the Strongest State Economy category (CNBC, 2018) is Idaho’s reward for his efforts.

CLOSE COOPERATION IN EMPLOYEE DEVELOPMENT

Idaho’s western spirit has created an industrious, energetic culture that is reflected in the mindset of the workforce. In the “Gem State” you will meet dedicated and qualified employees. Local colleges and universities work closely with the private sector to develop programs that meet business needs. The state supports companies in training specialists and reimburses the costs incurred for this. In addition, Idaho supports its entrepreneurs with various other measures. This enables the state to attract entrepreneurs and executives, whose work in turn has positive consequences for the local economy.

GOOD ACCESS TO THE CENTRAL MARKETS

For many companies, Idaho’s location is a key factor in locating here. The Gem State provides easy access to major US markets. The most important seaports in the country, in Portland and Seattle, are easily accessible and all goods can be shipped to the major US states in one to two days. Access to nearly 20 major air hubs is another plus and completes Idaho’s strategic location.

Whether you specialize in technology, agriculture or manufacturing, in Idaho you will find dedicated, like-minded professionals who share a passion for success and a state that stands by your side.

IDAHO INCOME TAX

Idaho charges an income tax of 1,125-6,925% depending on income. In addition, federal income taxes are payable.

CORPORATE INCOME TAX IN IDAHO

Idaho collects a 6.925% corporate income tax. In addition, federal corporation tax is payable.

SALES TAX IN IDAHO

There is no sales tax or Value Added Tax (VAT) in the USA based on the European model. Instead, in the United States, states, counties, and municipalities levy a local sales tax on the sale of products (but not services).

Sales Tax rate in Idaho

The sales tax in Idaho is 6% at the state level. Municipalities or districts charge an average of 0.03% sales tax. Combined, an average of 6.03% is due.

Idaho Nexus Laws & Sales Tax

Learn more about the Economic Nexus Laws in the context of Sales Tax here.

Effective Date

June 1, 2019

Transactions included:

Cumulative gross receipts from sales, including taxable products and taxable services, supplied to US states

Treatment of tax-exempt transactions:

Exempt Sales and Exempt Services are included in the threshold

Reason:

Sale only

Sales/Transactions Threshold:

$100,000

Evaluation period:

The threshold applies to the current or previous calendar year

Extra information:

  • Remote sellers with Economic Nexus are not responsible for collecting or remitting local Idaho sales tax.
  • Registration Requirements: Idaho requires remote businesses to track their sales and register before they reach the threshold so that they have timely permission from their seller to begin collecting sales tax once they cross the Economic Nexus threshold.
  • HB 259

Idaho Marketplace Sellers & Sales Tax

Learn more about Marketplace seller registration requirements

Effective date by the marketplace broker:

June 1, 2019

Economic Nexus Threshold:

More than $100,000 in cumulative gross receipts from Idaho sales in the state in the current or previous calendar year. When calculating the threshold:

  • Remote sellers include sales through a marketplace in the threshold count calculation.
  • Marketplace intermediaries include all sales via the marketplace in the calculation of the threshold

Registration requirements:

  • Remote Multichannel Sellers: You must register with the Idaho State Tax Commission and collect Idaho sales tax on sales not taxed by a Marketplace Agent once you have crossed the Economic Nexus Threshold.
  • Remote Marketplace Sellers: You must register if you cross the Economic Nexus Threshold, even if you only sell through one or two bulk marketplaces. Contact the Idaho State Tax Commission for more information.
  • In-State Multichannel Sellers: You must register with the Idaho State Tax Commission and collect taxes on sales that are not taxed by a marketplace intermediary.
  • State Marketplace Sellers: You must register; Contact the Idaho State Tax Commission for more information.