| Idaho | 6.00% |
| Madison County | 0.00% |
| City + District Rate | 0.00% |
| Combined Sales Tax Rate | 6.00% |
Businesses are required to collect sales tax in Madison if they have a sales tax nexus in Idaho and sell to residents of Madison, whether at a physical location within the county or online.
Physical Nexus: This occurs when a business has a tangible presence in the state. Examples include having a store, warehouse, office, or employees in Idaho if your business operates any of these within the state, you have a physical nexus and must collect sales tax from customers in Madison.
Economic Nexus: This is based on the volume of sales or number of transactions a business conducts in the state. For instance, if your business exceeds a certain threshold of sales or transactions in Idaho, which is often defined as a specific dollar amount or number of transactions, you establish economic nexus. Each state sets its own thresholds, so it’s important to monitor your activity closely to avoid accidental noncompliance. This means even if you don’t have a physical presence in the state, you are still required to collect sales tax from customers in Madison.
