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Airbnb? VRBO? Subject to Tax in Idaho

  • Aug 18, 2015 | Gail Cole

 Have a short-term rental in Idaho? Tax applies.

Update, 11.22.2016: Beginning December 1, 2016, Airbnb will collect all applicable lodging taxes for its hosts.

If you live in Idaho and rent out lodging space for short periods, you must apply Idaho sales tax (6%), the state travel and convention tax (2%), and any applicable local taxes to the charge.

The 8% tax applies to charges for short-term rentals (30 days or less) of just about any type of space, including but not limited to the following: cabin, condominium, lodge, private residence, room in a private residence and vacation home. According to the Audit Division administrator for the Tax Commission, “If you provide temporary lodging to the public for a fee, you must collect the sales tax and the travel and convention tax. The taxes apply whether you’re a hotel chain, a bed and breakfast, or a private homeowner.”

Local taxes may also apply, for some resort areas and auditoriums are permitted to add an extra tax on sleeping accommodations.

The Idaho State Tax Commission is underscoring this tax obligation due to the increasing number of homeowners renting out lodging through such services as Airbnb and VRBO. In some parts of the country, such as San Francisco, Airbnb is regulated and collects lodging taxes for homeowners. As evidenced by this news release, no such arrangement exists in Idaho. As a result, Idaho homeowners are required to deal with lodging taxes themselves.

Simplify lodging tax compliance with Avalara MyLodgeTax, a fully automated solution for vacation rental homeowners.

photo credit: OuiShare Summit 2012 via photopin (license)

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.