Idaho Tax Information

There are three tax types that affect most Idaho residents: sales, income, and property.

Idaho has a personal income tax for those who meet the filing criteria. The tax is graduated to make higher earnings taxed at a higher rate.

Property tax is paid by the owners on the real estate they own. These taxes are assessed by and paid to the counties, rather than the state. However, the state oversees the administration of the property tax system.

Individuals pay sales tax when they buy merchandise, unless an exemption applies.

Individual income tax

Rate: 1.6% to 7.8%

Individual (personal) income tax is graduated so higher earnings are taxed at a higher rate. Idaho residents are taxed on their total income, even if it’s earned in another state or country. Idaho income tax brackets are adjusted for inflation each year.

Credits to offset income tax due include: the grocery credit; credit for tax paid to other states, and credits for donations to Idaho educational entities and some nonprofit youth and rehabilitation facilities.

Are retirees taxed on their retirement income?

Generally, all income received by an Idaho resident, regardless of the source, is subject to Idaho income tax. However, Idaho does not tax Social Security benefits or benefits paid by the Railroad Retirement Board.

Property tax

Average Urban Rate: 1.275%

Average Rural Rate: .832

You can calculate a rough estimate of property taxes by multiplying the average tax rate by the property value, less exemptions.

Property taxes fund local government and are imposed and collected by the county where the property is located. Most homes, farms, and businesses are subject to property tax. Taxes are determined according to the property’s current market value minus any exemptions.

Sales and Use tax

Rate: 6%

Sales tax applies to the sale, rent, or lease of tangible personal property and some services. Food is taxed. Prescription drugs are not taxed. Admission fees and fees for recreation or hotel/motel rooms are also taxed.

Use tax is a tax on goods that you put to use or store in Idaho, and it is paid directly to the state, instead of the seller of the goods. Use tax applies if sales tax was not paid at the point of purchase. For more information, see what are Idaho’s sales tax rate and our Use Tax brochure.

Inheritance gift tax

Idaho has no inheritance tax or gift tax.

Estate tax

Idaho doesn’t have an estate tax, although it did at one time. For this to be reinstated, either the Idaho Legislature or Congress would have to change the law.

For more information, contact: