Idaho Grocery Tax Information
Idaho charges a state tax rate of 6% on groceries and offers a tax credit averaging $100 per person to offset this. Residents receive the tax credit when filing income taxes. The bill is currently discussing raising the tax credit to $120 per person in 2023.
The grocery tax credit for a typical family of four is currently $400, allowing them to buy $6,667 of groceries per year tax-free. If the credit rises to $120 per person, the same family could purchase $8,000 of groceries without paying sales tax.
Exemptions and Claims
Idaho taxes groceries at the full 6% state sales tax rate but offers a grocery tax credit refund. Residents 65 or older receive $120, and there are additional credits for dependents. Some goods, such as computer software, prescription medications, and qualified food stamp purchases, are exempt from sales tax.
Residents can claim the grocery tax credit through their state income tax return. Those not required to file taxes can still obtain the credit by submitting Form 24.
Attempts to Eliminate Grocery Tax
There have been past attempts to eliminate the grocery tax in Idaho, including legislative repeals in 2017 that were vetoed by the Governor. Despite these efforts, the tax remains in effect.