Personal income tax
Idaho collects income taxes from its residents at the following rates.
For single and married filing separately taxpayers:
- 1.6 percent on the first $1,428 of taxable income.
- 3.6 percent on taxable income between $1,429 and $2,857.
- 4.1 percent on taxable income between $2,858 and $4,286.
- 5.1 percent on taxable income between $4,287 and $5,715.
- 6.1 percent on taxable income between $5,716 and $7,144.
- 7.1 percent on taxable income of $7,145 and $10,717.
- 7.4 percent on taxable income of $10,718 and above.
For married persons filing joint returns, the rates remain the same but the income brackets are doubled. The tax brackets are adjusted annually based on the consumer price index.
Idaho tax returns are due April 15, or the next business day if that date falls on a weekend or holiday.
Social Security income and Railroad Retirement benefits are not taxed. Retired taxpayers also may receive a partial exemption for civil service and military retirement benefits received after age 65 (62 if disabled).
Some Idahoans qualify for a grocery credit designed to offset the sales tax charged on groceries. The amount of the credit varies depending upon the taxpayer's taxable income and age. You can claim the credit on your tax return or if you do not have to file a return, by submitting Form 24, Idaho Grocery Credit Refund.
Idahoans also may apply for state tax credits for taxes paid to other states, as well as for donations to Idaho state educational entities and some nonprofit youth and rehabilitation facilities.
Idaho's state sales tax is 6 percent.
Sales tax applies to the sale, rental or lease of tangible personal property and some services. Sales of food are taxed, for example, but sales of prescription drugs are not. Additional taxes apply to sales of lodging at hotels, motels and campgrounds.
Some Idaho resort cities, counties and auditorium districts have a local option sales tax in addition to the state sales tax.
Idaho also imposes a use tax, which is the same rate as the general sales tax. Use tax is collected on the consumption, use or storage of goods in Idaho if sales tax wasn't paid on the purchase of the goods. Most Idaho sales tax exemptions also apply to use tax. One difference: The use tax is paid directly to the state, instead of to the seller of the goods. Individuals can report use tax on their annual Idaho income tax return or submit it directly to the Tax Commission.
Personal and real property taxes
Property taxes apply to homes (including manufactured housing), farms, businesses, industry, warehouses, offices and most privately owned real estate, as well as personal property such as machinery and equipment, farm implements and office furniture and equipment.
Taxpayers must pay at least half of their property taxes by Dec. 20 and the other half by June 20. However, partial payments in increments of no less than $25 may be arranged with the county treasurer.
A rough estimate of property taxes can be calculated by multiplying the average tax rate by the property value, minus exemptions. The actual tax rate is the sum of the tax rates of all the taxing districts in one location.
Idaho has a homeowners exemption for owner-occupied homes and manufactured homes, which are primary dwellings, that includes the value of your home and up to 1 acre of land. Once you apply and qualify for this exemption, you do not have to reapply unless you move.
Contact your county assessor for specific information about valuation and the county treasurer about payments.
Some Idaho counties accept property tax payments online.
Inheritance and estate taxes
There is no inheritance tax in Idaho.
For dates of death on Jan. 1, 2005, and later, only federal estate tax returns need to be filed.
Other Idaho tax facts
The state of Idaho has partnered with software developers and the IRS to provide free electronic filing to some taxpayers.
Idaho residents now can go online to check the status of a refund.