All car sales in Idaho are subject to a state sales tax rate of 6%. However, the total tax rate is dependent on your county and local taxes, which can be up to 9%. On average, the total Idaho car sales tax is 6.074%.
Although checking the sale price of the car you’re shopping for can help keep you within budget, there are additional costs that can push you over. One particular cost you should take note of is the sales tax, which can vary depending on where your car is purchased.
Idaho car sales tax rates are some of the highest in the country. You will need to find out the exact rate in your area to know how much your car will actually cost. Fortunately, the car insurance
app, Jerry
, can guide you through the car sales taxes in Idaho. We'll even show you how to save on your Idaho car insurance costs
—it’s time to crunch some numbers! How much is the car sales tax rate in Idaho?
The statewide sales tax in Idaho is 6%, which will be applied to any car purchase, whether it’s a new or used car. On top of this base tax, you will also need to shell out extra for your county or local sales tax.
The highest combined sales tax rate for car purchases is in the city of Sun Valley, which has a 9% sales tax. Among the 112 local tax jurisdictions across the state, the sales tax averages out to around 6.074%. The good news is that multiple Idaho counties do not collect additional sales tax, so the rate in those particular counties is 6%.
How are car trade-ins taxed in Idaho?
Many dealers will allow you to trade in an old vehicle
so that you can use the credit towards purchasing a new car. In Idaho, the car sales tax only applies to the final ticket cost of your car, as the value of your trade-in is not subject to taxes. For example, if you’re buying an Audi A4 Premium
worth $57,000 in Meridian
, and you’re trading in your old Honda CR-V
for a $3,500 credit, you’ll only have to pay Ada County’s 6% combined state and local sales tax on $53,500 of the purchase. On the other hand, dealer rebates and incentives are not exempt from sales tax—meaning the sales tax is applied to the vehicle price before dealer incentives. For example, even if the dealer gives you a rebate, the sales tax will still be applied to the full price of the car.
How to calculate sales tax on a car in Idaho
You can easily calculate the total car sales tax in your area by using the online tax calculator tool
provided by the Sales Tax Handbook. You can get an estimate of the sales tax rate that will apply to your car purchase based on your purchase location ZIP code. Key Takeaway You can combine the 6% statewide sales tax with your local or county sales tax to calculate the total car sales tax in your area.
Exemptions from Idaho car sales tax
Although all Idaho State car purchases are subject to sales tax, there are a few exemptions. You can fill out the following forms for a car sales tax exemption according to your situation:
Non-resident buyers: Idaho Sales Tax Exemption Certificate–Nonresident Vehicle/Vessel Form ST-104NR
Government agencies, schools, some nonprofit organizations, and American Indian tribes: Idaho Resale or Exemption Certificate Form ST-101
Members of American Indian tribes: Sales Tax Exemption Certificate–Family or American Indian Sales Form ST-133
Interstate commerce: Idaho Sales Tax Exemption Certificate–Motor Vehicle Form ST-104IC
Producers, farmers, and ranchers: Idaho Resale or Exemption Certificate Form ST-101
For more details on available sales tax exemptions, refer to the chart provided
by the Idaho State Tax Commission. MORE: Car inspection in Idaho
How to estimate Idaho tax, title, and registration fees
Aside from the sales tax, you’ll also need to consider other factors that affect your total cost. For example, the title and registration fees, the cost to transfer your license plates, and the documentation fee charged by most dealerships.
Here’s how all the additional costs associated with car purchases in Idaho break down:
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| $45 to $69 <BR>(+$140 for electric vehicles) <BR>(+$75 for plug-in hybrids) |
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MORE: Is car insurance tax deductible?
How to find affordable car insurance in Idaho
One last expense after all the taxes and fees is the cost of car insurance
for your new car! Although Idaho can have high insurance rates, the Jerry
app can help lower your cost. Jerry does all the hard work of finding affordable quotes from the over 50 name-brand insurance companies and buying new car insurance. To ensure you always have the lowest rate, Jerry will also send you new quotes every time your policy comes up for renewal, so you’re always getting the coverage you want at the best price.
“When we added a new car to our family, we were shocked at how high our current insurer was going to hike our rates. We used Jerry
for some comparison shopping and are now saving around $1000 a year. Thank you, Jerry!” —Darius P.
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