Idaho Sales Tax for Contractors (2026): Who Pays on a Home Remodel
Whether an Idaho contractor charges sales tax on a home remodel, who pays on materials, and three jobs worked at 6%.
Not tax advice. General information from each state's revenue department, checked Oct 29, 2026. Rates shown are the state rate; city and county tax is extra where it applies. The facts of your job and contract can change the answer; for a specific job, ask a tax professional in your state.
The rule in Idaho
Materials only
You pay tax on materials and fixtures; installation isn't taxed.
6%
6% plus limited local
Itemizing or time and materials
Selling materials at an agreed price is a taxable retail sale.
None
Source: IDAPA 35.01.02.012 (Rule copy, eff. Mar 31, 2022)
“Contractors are defined as consumers of materials they use”
Three jobs, worked
| Job | Customer | You pay |
|---|---|---|
| Bathroom $12,000 job, $5,000 materials | $0 | $300 |
| Kitchen $40,000 job, $15,000 materials | $0 | $900 |
| Addition $90,000 job, $35,000 materials | $0 | $2,100 |
On the kitchen: The customer pays no sales tax. You pay $900 on $15,000 of materials at 6%, and build it into the price. Itemize materials or bill time and materials and you collect 6% on the materials from the customer instead.
Idaho sales tax questions
Do contractors charge sales tax in Idaho?
Not on a home remodel. The contractor pays tax on materials when buying them and charges the homeowner none. Selling materials at an agreed price is a taxable retail sale.
Is labor taxable in Idaho?
Not for remodeling a home.
What rate do contractors pay on materials in Idaho?
6% state rate, plus local tax in the few resort cities that have one.
Compare other states
How we checked
We read each state's sales tax rule for construction contractors on the revenue department or legislature site, and its 2026 state rate. Two independent research passes covered all 50 states and DC, and a third reviewer checked the result. Where a state's own page would not load, the row names the copy we read. Last checked .
This guide explains the general rule for remodeling an owner-occupied home. It is not tax advice.