--- title: "Idaho marketplace facilitator law and 1099-K rules" description: "Idaho marketplaces collect sales tax for sellers since June 1, 2019; sellers using only registered marketplaces need no permit. $5,000 small-seller rule." canonical: https://resellerindex.com/tax/states/idaho/ last_updated: 2026-10-23 publisher: "The Reseller Index" --- [Taxes](https://resellerindex.com/tax/) / [State tax rules](https://resellerindex.com/tax/states/) / Idaho # Selling on eBay, Poshmark or Etsy from Idaho: sales tax and 1099-K rules Since June 1, 2019, Idaho Code § 63-3605E has required marketplace facilitators to collect and forward Idaho sales tax on third-party sales in Idaho, and the State Tax Commission says you don't need an Idaho seller's permit if you sell only on sites that register with it as marketplace facilitators, though you should verify they report your sales. For Form 1099-K, no Idaho threshold appears on the State Tax Commission pages checked for this page; the federal test is over $20,000 in more than 200 transactions. General information, not tax advice. Check with a tax professional about your own situation. Checked against the official pages listed below on Oct 19, 2026. ## Idaho in short - **General sales tax:** Yes - **Marketplace facilitator law:** Yes: Idaho Code § 63-3605E (House Bill 259, 2019), since Jun 1, 2019 - **When a marketplace must collect:** for a facilitator without a physical presence in Idaho, combined own and third-party Idaho sales over $100,000 in the current or previous year; a facilitator with a physical presence collects on third-party sales without a threshold - **Form 1099-K:** No state rule stated on the pages checked ## Who collects the tax on a marketplace sale Idaho law requires marketplace facilitators to collect and forward Idaho sales tax on third-party sales in Idaho. A facilitator without a physical presence collects once its own Idaho sales plus its third-party Idaho sales exceed $100,000 in the current or previous year, and holds separate seller's permits for its own sales and its third-party sales. ### If you sell only through marketplaces The Tax Commission says you don't need an Idaho seller's permit if you sell only on third-party websites or social media sites that register with it as marketplace facilitators; they report your sales, collect the tax and forward it for you, and you verify they are reporting your sales. It asks third-party sellers to have the facilitator provide written verification of the tax it reports, and to include the tax on their own permit if a facilitator isn't collecting and forwarding it. Registration, resale certificates and what changes when you also sell direct have their own page: [Idaho: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/idaho/). The law: Idaho Code § 63-3605E (House Bill 259, 2019), effective Jun 1, 2019. > "The only other time you don’t need an Idaho seller’s permit is if you sell only on third-party websites or social media sites that register with the Tax Commission as marketplace facilitators." Idaho State Tax Commission, [Who Needs a Seller's Permit?](https://tax.idaho.gov/taxes/sales-use/permits/who-needs-a-sellers-permit/) > "Have your marketplace facilitator provide written verification of the sales tax they’re reporting." Idaho State Tax Commission, [Guides for Different Business Types](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/business-types/), Third-party sellers Sources: [Online Sellers Guide](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/online-guide/); [Guides for Different Business Types](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/business-types/); [Who Needs a Seller's Permit?](https://tax.idaho.gov/taxes/sales-use/permits/who-needs-a-sellers-permit/); [Laws and Rules for Online Sellers](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/laws-rules/). ## Idaho's sales tax Idaho has a state sales and use tax administered by the Idaho State Tax Commission. Since July 1, 2025, a qualifying Idaho small seller (an Idaho resident individual or sole proprietor with cumulative gross sales of $5,000 or less in the current and previous calendar year, counting marketplace sales) doesn't have to get a permit or collect sales tax on Idaho sales. > "Idaho law defines a “small seller” as an Idaho resident operating as an individual or sole proprietorship, whose cumulative gross sales don’t exceed $5,000 in either the current or previous calendar year." Idaho State Tax Commission, [New law means Idaho small sellers won't have to charge sales tax](https://tax.idaho.gov/pressrelease/new-law-means-idaho-small-sellers-wont-have-to-charge-sales-tax/), News release, July 17, 2025 > "The $5,000 limit includes sales made in state, out of state, or using a marketplace facilitator." Idaho State Tax Commission, [New law means Idaho small sellers won't have to charge sales tax](https://tax.idaho.gov/pressrelease/new-law-means-idaho-small-sellers-wont-have-to-charge-sales-tax/), News release, July 17, 2025 Sources: [New law means Idaho small sellers won't have to charge sales tax](https://tax.idaho.gov/pressrelease/new-law-means-idaho-small-sellers-wont-have-to-charge-sales-tax/); [Who Needs a Seller's Permit?](https://tax.idaho.gov/taxes/sales-use/permits/who-needs-a-sellers-permit/) ## Form 1099-K: Idaho and the federal test The Tax Commission pages checked for this page (its online seller guides and permit pages) don't address Form 1099-K, so no Idaho 1099-K rule is stated here. The federal test, for comparison: the IRS says a payment app or online marketplace must send a Form 1099-K when payments for goods or services total over $20,000 in more than 200 transactions, and adds: "However, they may send you a Form 1099-K with lower amounts and/or transactions." ([Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026). The [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k) count both parts for the calendar year, through each platform separately, and say the box 1a gross amount is figured without adjustments for credits, discounts, fees, refunds or shipping, so a 1099-K figure is not the same as profit. More on the federal rule in [Form 1099-K for resellers](https://resellerindex.com/guides/1099-k-for-resellers/). Sources: [Online Sellers Guide](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/online-guide/); [Who Needs a Seller's Permit?](https://tax.idaho.gov/taxes/sales-use/permits/who-needs-a-sellers-permit/) ## Worked examples ### An Idaho resident with $4,000 of sales a year $4,000 of cumulative gross sales in both the current and previous calendar year, including $2,000 on marketplaces, is under the $5,000 small seller limit, so the seller doesn't need a permit or collect sales tax on Idaho sales. Over $3,000 a year, the Tax Commission says to start tracking sales; over $5,000, get a seller's permit within 30 days. ### An Idaho seller with $12,000 a year, all on marketplaces $12,000 is over the small seller limit, but if every sale goes through sites registered with the Tax Commission as marketplace facilitators, its permit page says no Idaho seller's permit is needed. The seller keeps the facilitators' written verification of the tax they report. ## Edge cases and details - The small seller exemption excludes sales of certain items, such as vehicles, lodging, alcohol and admissions, and small sellers still pay sales tax on what they buy and register when they sell at a promoter-sponsored event, the Tax Commission's July 17, 2025 release says. - A small seller who exceeds $5,000 in gross sales for the current or previous calendar year must get a seller's permit within 30 days and start collecting and sending in Idaho sales and use taxes. - Short-term rental marketplaces must collect and send in all taxes due for all your sales for you to skip a permit; otherwise you still need permits, the Tax Commission says. - A retailer with a physical presence in Idaho that also runs a marketplace collects on its third-party sales and holds separate permits for its own and third-party sales. ## What to do 1. Ask each marketplace for written verification of the Idaho sales tax it reports on your sales, as the Tax Commission suggests, and keep it. 2. If you're an Idaho resident with small total sales, read the Tax Commission's small seller exemption page (tax.idaho.gov/smallseller) and track your yearly total against $3,000 and $5,000. 3. If you sell at shows or events in Idaho, check the promoter-sponsored event rules on the Tax Commission's permit page. 4. Check with a tax professional, or with the Tax Commission, about your own permit and income tax questions. ## Common questions ### Do I need an Idaho seller's permit to sell on eBay or Poshmark? Not if you sell only on sites registered with the Idaho State Tax Commission as marketplace facilitators, according to its Who Needs a Seller's Permit page; it asks you to verify they report your sales. Other sales, such as at events or through your own site, can require a permit unless you qualify as a small seller. ### Do my marketplace sales count toward Idaho's $5,000 small seller limit? Yes. The Tax Commission's July 17, 2025 release says the $5,000 limit includes sales made in state, out of state, or using a marketplace facilitator. ## Related - [Every state on one table: sales tax, marketplace facilitator laws and 1099-K rules](https://resellerindex.com/tax/states/) - [Idaho: seller's permit and resale certificate rules](https://resellerindex.com/tax/sellers-permit/idaho/) - [Hawaii: sales tax and 1099-K rules](https://resellerindex.com/tax/states/hawaii/) - [Illinois: sales tax and 1099-K rules](https://resellerindex.com/tax/states/illinois/) - [Form 1099-K for resellers: the federal test](https://resellerindex.com/guides/1099-k-for-resellers/) - [Do eBay's fees apply to the sales tax a buyer pays?](https://resellerindex.com/guides/ebay-fees-on-sales-tax/) - [Where each selling app keeps its sales report](https://resellerindex.com/guides/sales-reports-for-taxes/) ## General information, not tax advice This page summarizes Idaho's own published pages and statutes as read on Oct 19, 2026, and the IRS's 1099-K pages. It doesn't say what you should file, register for or pay. Rules depend on your situation and change: check with a tax professional, or with the state's revenue department. ## Sources Official pages this page is built from, with the day each was read. - Idaho State Tax Commission: [Online Sellers Guide](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/online-guide/); read Oct 19, 2026. June 1, 2019 law; facilitator threshold and separate permits. - Idaho State Tax Commission: [Guides for Different Business Types](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/business-types/); read Oct 19, 2026. Third-party sellers: facilitators collect, written verification, report tax if a facilitator doesn't. - Idaho State Tax Commission: [Laws and Rules for Online Sellers](https://tax.idaho.gov/taxes/sales-use/guides-for-certain-groups/online-sellers/laws-rules/); read Oct 19, 2026. Marketplace facilitator law: Idaho Code section 63-3605E, House Bill 259 (2019). - Idaho State Tax Commission: [Who Needs a Seller's Permit?](https://tax.idaho.gov/taxes/sales-use/permits/who-needs-a-sellers-permit/); read Oct 19, 2026. No permit needed when selling only through registered marketplace facilitators; short-term rentals; small seller exemption; events. - Idaho State Tax Commission: [New law means Idaho small sellers won't have to charge sales tax](https://tax.idaho.gov/pressrelease/new-law-means-idaho-small-sellers-wont-have-to-charge-sales-tax/), dated Jul 17, 2025; read Oct 19, 2026. Small seller exemption from July 1, 2025: $5,000 limit including marketplace sales, exclusions, $3,000 tracking, 30-day permit rule. - IRS: [Understanding your Form 1099-K](https://www.irs.gov/businesses/understanding-your-form-1099-k), reviewed Jun 28, 2026. The federal 1099-K test. - IRS: [Instructions for Form 1099-K](https://www.irs.gov/instructions/i1099k), reviewed Jun 1, 2026. Both parts of the federal test counted for the calendar year. Subscribe: https://resellerindex.com/subscribe/ --- The Reseller Index Researched and drafted with AI assistance from each platform's and carrier's own published pages. A full-time reseller runs The Reseller Index and will edit every newsletter issue once the newsletter starts. Every number links to its source and carries the date we checked it. Spot an error? [Tell us](https://resellerindex.com/corrections/) and we'll fix it in the public corrections log. General information, not tax, legal or financial advice. Not affiliated with or endorsed by eBay, Amazon, Mercari, Poshmark, Depop, Whatnot, Etsy, TikTok Shop, USPS, the IRS or the software companies whose prices we track; their names belong to them. Each page shows the date its own rates were last checked. Sponsored placements are always labeled "Sponsored". © 2026 The Reseller Index. No trackers, no ad cookies.