Idaho Income Tax Calculator

Taxes in Idaho

Idaho State Tax Quick Facts

• Income tax: 0.00% - 5.80%
• Sales tax: 6.00% - 9.00%
• Property tax: 0.63% effective property tax rate
• Gas tax: 32 cents per gallon of regular gasoline and diesel

Idaho has enacted several tax cuts in the past decade, lowering its top tax rate from 7.80% in 2011 down to the current rate of 5.80% for the 2023 tax year. Even with these tax cuts, that remains on the higher side of all the rates in the country. The Gem State also has lower-than-average sales taxes, with a statewide rate of 6% and a limited number of municipal sales taxes. Homeowners in Idaho likewise benefit from taxpayer-friendly policies, facing an average effective property tax rate of 0.63%. The national average is 1.02%.

A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Idaho Income Taxes

There are only two income tax brackets in Idaho. Marginal rates begin at 0.00% and reach 5.80% for income above $4,489 for single filers and $8,978. The table below shows tax rates and brackets for the Idaho personal income tax.

Taxpayers in Idaho pay taxes based on total income, which includes wages, salaries, self-employment income, rental income, royalties and various forms of interest income. Social Security is not taxed in Idaho, nor is interest from U.S. Government Obligations.

Filers in Idaho can claim itemized deductions or the standard deduction, whichever is greater. The standard deduction is equal to the federal standard deduction, which for the 2023 tax year is $13,850 for single filers and $27,700 for joint filers. The personal exemption was eliminated starting in the 2019 tax year, just as they were with federal income taxes.

Idaho Tax Credits

Some taxpayers in Idaho may also be able to claim tax credits to lower their tax bill. Idaho credits include the credit for income taxes paid to other states, credits for charitable contributions and live organ donations and the grocery credit (which is available to low-income taxpayers to offset Idaho’s sales tax on food). Since the 2018 tax year, Idaho also has a nonrefundable child tax credit of $205 for each qualifying child.

Idaho Capital Gains Tax

Capital gains are taxed as regular income in Idaho, and subject to the personal income tax rates outlined above. However, certain types of capital gains qualify for a deduction. Real property that is held for at least one year is eligible for a deduction of 60% of the net capital income (that is the net gain after expenses).

Tangible property (i.e. not stocks, easements or other intangible goods) used in a revenue-producing enterprise and held for at least 12 months is also eligible for the 60% deduction. Farmers and ranchers may be able to claim the deduction for the sale of horses or cattle sold after 12 or more months, and any timber held for at least 24 months is eligible.

Intangible property, like stocks or bonds, does not qualify for the capital gains deduction under any circumstances.

Idaho Sales Tax

Idaho’s state sales tax is 6%. This is the rate you will be charged in almost the entire state, with a few exceptions. There are 10 counties that include local governments that may charge their own sales tax. These local sales taxes are often called “local option taxes.” The cities with a local sales tax can decide which purchases are subject to the tax and at what rates. For example, it’s common for these cities to charge an additional tax on lodging, alcohol and restaurant food sales.

Idaho sales tax applies to the sale, rental or lease of most goods and some services. Temporary lodging (30 days or less) is taxed. Food is taxed in Idaho, though low-income taxpayers may be eligible for a tax credit to offset the cost of sales taxes paid on food purchases. Prescription drugs, however, are exempt from sales taxes.

Idaho Property Tax

Idaho has relatively low property taxes compared to the rest of the country. A typical homeowner in the Gem State pays 0.63% of their home values in property taxes each year, which is a total of about $1,682 annually. Property taxes help pay for local services such as schools, law enforcement and libraries.

Property taxes are based on the assessed value of a home, but homeowners living in a primary residence may be eligible for a property tax exemption of up to 50% of the home value or up to one acre of land ($125,000 maximum). 

Enticed by Idaho’s low property taxes? If you’re looking to become a resident, check out our guide to Idaho mortgage rates and getting a mortgage in Idaho.

Idaho Gas Tax

Going for a drive in Sawtooth National Forest? Idaho collects a gas tax of 32 cents per gallon on both regular gasoline and diesel.

Idaho Cigarette Tax

Cigarettes in Idaho are taxed at a rate of 57 cents per pack of 20. The state has had the same rate since 2003 and it's one of the lowest cigarette taxes in the country. There is a separate tobacco tax on other tobacco products like cigars and snuff. That tax is equal to 40% of the wholesale price of the tobacco. The tax on cigars tops out at 50 cents per cigar. 

Idaho Alcohol Tax

Alcoholic beverages are taxed at varying rates in Idaho, depending on the type of beverage. The beer tax is relatively low, at just 15 cents per gallon (about 1.4 cents per beer), while the wine tax is 45 cents per gallon. The sale of hard liquor is controlled by the state. Since neighboring Washington state has a liquor tax of $14.27 per gallon, it's common for Washington residents who live near the border to cross state lines and buy their booze in Idaho.

Idaho Estate Tax

There is no estate or inheritance tax in Idaho. Estates may still have to pay the federal estate tax, however.

• Nearly one-third of the United States potato crop is grown in Idaho, which is just the 14th largest state by area.
• 75% of Idaho’s energy is generated by hydroelectric power plants.
• Boise, which is the state capital of Idaho, is the only city in the state with a population over 100,000.