The Complete Idaho STR Lodging Tax Guide: Airbnb and VRBO Idaho Occupancy Tax Breakdown

Starting an Airbnb or short-term rental business in Idaho comes with specific tax obligations that hosts must understand to operate legally and efficiently. Join us as we break down the general lodging and occupancy taxes applicable statewide, followed by a detailed look at unique tax requirements in specific cities and counties.

Idaho-Wide Lodging Tax Requirements for Airbnb Hosts

Every short-term rental host in Idaho must collect and remit two primary taxes for stays of 30 nights or less. Hosts are subject to an Idaho Sales Tax of 6% which includes the total listing price, cleaning fees, and other charges. Additionally, rentals are also required to pay for an Idaho Travel and Convention Tax of 2%, which is directly remitted to a fund dedicated to pushing tourism efforts in the state.

Example: For a 5-night stay with a nightly rate of $150 and a $100 cleaning fee.

• Base Revenue: ($150 × 5) + $100 (Cleaning fee) = $850
• Idaho Sales Tax: $850 × 6% = $51
• Travel & Convention Tax: $850 × 2% = $17
• Total Tax: $68
• Total Guest Charge: $918

County and City-Wide Occupancy Tax Requirements

Sandpoint

Sandpoint has one of the highest local option taxes in the state at a staggering 14%. Before, the Resort City Tax used to be 7%, but on January 1, 2023, it was doubled to the current 14%. Half of this tax funds streets and pedestrian improvements, so at least hosts know its put to good use.

Example: For a 3-night stay with a nightly rate of $200 and a $120 cleaning fee.

1. Base Revenue: ($200 × 3) + $120 = $720
2. Idaho Sales Tax: $720 × 6% = $43.20
3. Travel & Convention Tax: $720 × 2% = $14.40
4. Sandpoint Resort City Tax: $720 × 14% = $100.80
5. Total Tax: $158.40
6. Total Guest Charge: $878.40

McCall

McCall implements a Local Option Tax of 7%. This tax consists of a 1% retail tax plus a 6% lodging tax for all accommodations within city limits. The funds are split between street improvements and quality of life/tourism projects.

Example: For a 4-night stay with a nightly rate of $180 and a $100 cleaning fee.

1. Base Revenue: ($180 × 4) + $100 = $820
2. Idaho Sales Tax: $820 × 6% = $49.20
3. Travel & Convention Tax: $820 × 2% = $16.40
4. McCall Local Option Tax: $820 × 7% = $57.40
5. Total Tax: $123
6. Total Guest Charge: $943.00

Boise and Greater Boise Auditorium District

Properties in the Greater Boise Auditorium District face an additional tax. The Greater Boise Auditorium District Tax of 5% helps fund local convention and visitor facilities. This is in addition to the standard state taxesm bringing the total tax rate to about 13%.

Example: For a 2-night stay with a nightly rate of $175 and a $90 cleaning fee.

1. Base Revenue: ($175 × 2) + $90 = $440
2. Idaho Sales Tax: $440 × 6% = $26.40
3. Travel & Convention Tax: $440 × 2% = $8.80
4. Greater Boise Auditorium District Tax: $440 × 5% = $22.00
5. Total Tax: $57.2
6. Total Guest Charge: $497.20

Meridian

The final city is Meridian. Meridian hosts are subject to a 2% local sales tax. It’s applicable to all short-term rental accommodations and includes everything from the total listing price to the extra charges.

Example: For a 3-night stay with a nightly rate of $160 and an $80 cleaning fee.

1. Base Revenue: ($160 × 3) + $80 = $560
2. Idaho Sales Tax: $560 × 6% = $33.60
3. Travel & Convention Tax: $560 × 2% = $11.20
4. Meridian Local Option Tax (2%): $560 × 2% = $11.20
5. Total Tax: $56
6. Total Guest Charge: $616.00

Wrapping Things Up

Understanding lodging and occupancy taxes is crucial for Airbnb hosts in Idaho. By complying with state-level taxes like sales tax and Travel and Convention tax, as well as local taxes in some cities, hosts can avoid penalties while contributing to tourism development in the state.

Always consult local authorities or tax professionals for updates on regulations specific to your area. Check out the official Idaho Tax website for more insights into applicable taxes.