Idaho

Sales Tax

  • Statewide: 6.0%
  • Counties can levy an additional sales tax of no more than 3.0%.
  • Current average sales tax (with local taxes included): 6.02%
  • Common Exceptions at State Level: 
    • Prescription Medicine: Exempt
  • Gasoline Tax: 51.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 57.40 cents/gallon (Includes all state, local, and federal taxes)
  • Groceries are taxed, but a $100-per-person sales tax credit (seniors get $120) is in place.

 

Personal Income Tax

  • Personal Income Tax Rate Range: Five brackets from 0% to 6.0%. Flat rate of 5.8% begins on income over $2,500 as of Jan. 3, 2023.
  • Standard deduction: Single Filing Status: $12,950. Married Filing Jointly: $25,900
  • Personal Exemption Allowance: N/A
  • Itemized Deductions Allowed? Yes, subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal income
    • Military Retirement Pay: Taxable at ordinary income tax rates*
    • Military Disability Pay: Exempt
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*
Income tax comments: *$60,210 of retirement income ($40,140 for joint filers) may be exempt if 65 and over (or 62 and over and disabled) but must be reduced by any Social Security benefits.

 

Property Tax

  • Local municipalities average .69% of the property's assessed value.
  • Calculation of assessed value: 100% of fair market value
  • Relief programs for:
    • Owner-occupied: Assessed value is lesser of 50% of fair market value up to $125,000.
    • 65 and over/Disabled/Disabled Vet: Taxes may be reduced by up to $1,500 if income less than $32,230. 
  • Personal Property Tax: Yes.
Property Tax Comments: Tax deferral programs are in place if meet income requirements.

 

Inheritance & Estate Taxes: None.

 

Department of Revenue website: www.tax.idaho.gov

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