Idaho sits in the northwest of the USA and borders Canada. Almost half of its 215,000 km² is covered by forest. By area, the "Gem State" is the 14th largest in the country. With around two million people (as of 2024), it is one of the more sparsely populated US states.
Idaho's economy blends traditional and up-and-coming industries. That combination brings stability, cooperation and innovation. If this mix appeals to you, Idaho is a great place for your business.
Idaho is an attractive place to invest. Economic growth is steady and backed by a stable business environment. Technology manufacturing is the biggest contributor to Idaho's gross domestic product, and investment in the sector keeps paying off. Tech is strongly represented too: today more than 800 software companies are based in Idaho. The state has long ranked near the top for patents per capita, and its vibrant business culture is called one of the best in the whole country.
A state that lends a hand
Low taxes ("A Top-10 Most Tax Friendly State", CNBC), a balanced state budget and light regulation have earned Idaho sixth place in U.S. News' "Best State Economy" ranking. The outlook for job growth is even better: the Bureau of Labor Statistics puts Idaho in a very strong third place nationwide. GDP shows strong, continuous growth.
Idaho likes to say it stands beside businesses rather than in their way. Its title as "Most Friendly State for Small Business" (The Kauffman Foundation and Thumbtack.com) backs that up, and fourth place for "Best State for Cost of Doing Business" (CNBC) is further proof. The state does a wonderful job of carrying its general friendliness over into its business climate. Entrepreneurs face no unnecessary restrictions or requirements and can focus entirely on growing their business. Fifth place for "Strongest State Economy" (CNBC, 2018) is Idaho's reward for its efforts.
Close cooperation on workforce development
Idaho's Western spirit has created a hard-working, can-do culture that shows in the mindset of its workforce. In the "Gem State" you will find committed, skilled employees. Local colleges and universities work closely with the private sector to build programs that meet business needs. The state supports companies in training skilled workers and also reimburses the costs involved. On top of that, Idaho backs its entrepreneurs with a range of other measures. This lets the state attract entrepreneurs and executives whose work in turn has positive knock-on effects for the local economy.
Easy access to key markets
For many companies, Idaho's location is the deciding factor for setting up here. The "Gem State" offers easy access to the most important US markets. The country's major seaports in Portland and Seattle are within easy reach, and shipped goods arrive in the key US states within one to two days. Access to nearly 20 major airline hubs is another plus and rounds off Idaho's strategically favorable location.
Whether you specialize in technology, agriculture or manufacturing: in Idaho you will find committed, like-minded professionals who share your passion for success, and a state that has your back.
Here you can find out which states are especially popular with foreign investors, and why.
Income tax in Idaho
Idaho levies a flat income tax of 5.3% (since tax year 2025). Federal income tax is due on top.
Corporate tax in Idaho
Idaho levies a corporate tax of 5.3% (since tax year 2025). Federal corporate tax is due on top.
Sales tax in Idaho
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Idaho
The state sales tax in Idaho is 6%. Cities and counties add an average of 0.03%, so the combined rate averages 6.03%.
Idaho nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
June 1, 2019
Included transactions:
Cumulative gross receipts from sales, including taxable products and taxable services delivered into the state
Treatment of exempt sales:
Exempt sales and exempt services are included in the threshold
Trigger:
Sales only
Sales/transaction threshold:
$100,000
Evaluation period:
The threshold applies to the current or previous calendar year
Additional information:
- Remote sellers with economic nexus are not responsible for collecting or remitting local sales tax in Idaho.
- Registration requirements: Idaho expects remote businesses to track their sales and register before reaching the threshold, so they have their seller's permit in time to start collecting sales tax as soon as they cross the economic nexus threshold.
- HB 259
Idaho marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
June 1, 2019
Economic nexus threshold:
More than $100,000 in cumulative gross receipts from Idaho sales in the current or previous calendar year. When calculating the threshold:
- Remote sellers include sales through a marketplace when calculating the threshold.
- Marketplace facilitators include all sales through the marketplace when calculating the threshold
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the Idaho State Tax Commission and collect Idaho sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You must register once you cross the economic nexus threshold, even if you only sell through one or two 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 tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register; contact the Idaho State Tax Commission for more information.
- Learn more here.
Find more state profiles in our overview of all US states. Which state is right for your company? Our guide Which US state is best for your company? explains. And how to run a US LLC with no US presence completely tax-free is shown by our sister site zerotax.llc.
Our services for Idaho:
You can form a company with us in six states; our overview of US company formation shows which one fits your plans in Idaho. Any open questions we can settle in a consultation.