Running a short-term rental in Swan Valley can be a great way to earn income, but the tax rules can feel confusing. You want to stay compliant, avoid surprises, and keep more of what you earn. In this guide, you’ll learn which Idaho taxes apply, how marketplace platforms handle them, what to check locally in Swan Valley, and the simple steps to register and file on time. Let’s dive in.
What taxes apply in Swan Valley
Idaho taxes most short-term stays of 30 days or less. The statewide taxes are the big ones you will see on nearly every booking. They are typically charged on the total lodging price, which often includes cleaning and service fees.
- Idaho sales tax: 6% on the taxable lodging charge. Idaho’s lodging guidance explains what is taxable and when.
- Idaho travel and convention tax: 2% on short-term lodging. This is in addition to the 6% sales tax and applies to many stays under 30 days, as outlined in the state’s lodging guidance.
- Auditorium district tax: up to 5% in certain districts only. Examples include Boise, Idaho Falls, and Pocatello/Chubbuck. This applies only if your property sits inside an auditorium district’s boundaries. See the state’s lodging guidance for context.
Stays of more than 30 consecutive days are generally not subject to these lodging taxes. Always treat the total price you charge for the stay as the taxable base unless state guidance says otherwise. Cleaning fees and similar charges are commonly taxable as part of the lodging price under Idaho’s lodging guidance.
Swan Valley local option tax
Some Idaho resort cities use a voter-approved local option tax on lodging or certain sales. Swan Valley is named among Idaho resort communities that have used or are eligible for this type of tax. Because each city sets its own rules and rates, you should confirm whether a Swan Valley local option lodging or sales tax applies inside city limits and at what rate.
- Start with the Idaho State Tax Commission’s page on city local option taxes.
- Then contact the Swan Valley city clerk to confirm the current status, rate, taxable base, and any local registration or permit requirements.
Do not assume your platform collects a Swan Valley local option tax. Some platforms collect state taxes but not city taxes.
Who collects and remits
Idaho requires short-term rental marketplaces that arrange bookings to register and collect applicable state lodging taxes. That often covers the 6% sales tax and 2% travel and convention tax when a guest books through a platform.
- When platforms collect: If a marketplace facilitates the entire booking, it typically registers and remits Idaho state lodging taxes on your behalf. Idaho rules address marketplace obligations in IDAPA 35.01.06.003. Platforms also publish their own tax collection details. See VRBO’s tax help page for examples.
- When you must collect: If you take direct bookings or your platform does not collect a specific tax, you must register with the Idaho State Tax Commission, charge the right taxes, and file returns. This can include a local option tax if Swan Valley has one.
What counts as taxable
Idaho generally treats the total lodging charge as the taxable price. That can include nightly rates, cleaning fees, and certain service fees tied to the stay. Review the state’s lodging guidance to confirm how your specific charges are treated.
Register and file: a simple checklist
Use this step-by-step list to set up clean compliance for your Swan Valley rental.
- Register if needed
- If you will collect or remit taxes, register with the Idaho State Tax Commission and set up your TAP account. Idaho’s rules on marketplace and retailer registration are in IDAPA 35.01.06.003.
- Confirm platform tax collection
- Check your listing settings and statements from your marketplace to see which taxes they collect for your property. Review platform guidance like VRBO’s tax help page.
- Check Swan Valley local option status
- Contact the Swan Valley city clerk and verify whether a local option lodging or sales tax applies, the rate, and how it is administered. Start with the Tax Commission’s city local option page.
- Register your business name if needed
- If you operate as a business or under a trade name, complete state business registration. See the Idaho SBDC’s business FAQs for guidance.
- Set up clean bookkeeping
- Track taxable lodging receipts separately from any nontaxable items. Keep records and invoices for at least four years, as guided by Idaho’s lodging resources.
- File and pay on schedule
- The Tax Commission assigns filing frequency, often monthly. Returns are typically due on the 20th day of the month following your reporting period. See IDAPA 35.01.02.105 for timing.
Federal tax basics for hosts
You must generally report rental income to the IRS. The rules differ if you also use the property personally, so good recordkeeping matters.
- Reporting and deductions: IRS Publication 527 explains how to report income and claim expenses, including depreciation, for residential rentals. Read IRS Publication 527 for the details.
- The 14-day and 10 percent tests: Section 280A addresses personal use. If you use the home more than 14 days or more than 10 percent of the days rented at fair rental, it is treated as a residence for expense allocation. Review IRC Section 280A.
- Very short rentals: A limited exception may apply for rentals of fewer than 15 days in a year. See Publication 527 for how this works.
Common mistakes to avoid
- Assuming your platform collects every tax. Some collect state lodging taxes but not any city tax.
- Forgetting to tax cleaning fees. These charges are commonly part of the taxable price in Idaho.
- Missing the 30-day cutoff. Longer stays may be treated differently for state lodging taxes.
- Skipping zero returns. You may need to file even when you have no taxable sales for a period.
- Ignoring auditorium district boundaries. Only some areas are in a district, and the tax applies only inside those lines.
Quick math example
You charge $200 per night for a 2-night stay and a $100 cleaning fee. Your taxable base is $500. Idaho’s 6% sales tax plus 2% travel and convention tax equals 8%, so the combined state taxes are $40. If a local option tax or auditorium district tax applies, that would be in addition to the $40. Confirm any local taxes with the city clerk and the Tax Commission’s city local option page.
Work with a local team that understands STRs
Whether you are buying an STR-ready cabin in Swan Valley or prepping your current rental for the market, you deserve clear guidance and strong marketing. Our team helps investors and second-home owners navigate local rules, present their properties beautifully, and reach the right guests. If you want straightforward answers and a plan tailored to Swan Valley, connect with Top-Notch Real Estate.
FAQs
What taxes apply to short-term rentals in Swan Valley?
- Idaho’s 6% sales tax and 2% travel and convention tax generally apply to stays of 30 days or less, and auditorium district or local option taxes may apply depending on your property’s location.
Do I need to tax cleaning fees for my Airbnb in Swan Valley?
- In Idaho, cleaning fees and similar charges connected to the stay are commonly part of the taxable price, as explained in the state’s lodging guidance.
Will Airbnb or VRBO collect all Idaho and local taxes for me?
- Marketplaces often collect Idaho state lodging taxes, but collection of any city or district tax varies by platform and location, so you must verify what is being collected for your listing.
How often do I file Idaho lodging taxes as a host?
- The Idaho State Tax Commission assigns your filing frequency, often monthly, and returns are typically due on the 20th day after the reporting period.
Does Swan Valley charge a local option lodging tax?
- Swan Valley is among Idaho resort communities that have used or are eligible for local option taxes, so contact the city clerk and check the Tax Commission’s city tax page to confirm the current status and rate.
How do federal taxes work if I use the property personally?
- IRS rules in Publication 527 and Section 280A use the 14-day and 10 percent tests to determine how you report income and allocate expenses when you mix rental and personal use.
