Idaho's personal income tax system has eight tax brackets, ranging from 1.6 percent to 7.8 percent. The tax brackets are annually indexed for inflation. More on Idaho taxes can be found in the tabbed pages below.
Income
Sales
Property
Estate
Other
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 $1,198 of taxable income
-- 3.6 percent on taxable income between $1,199 and $2,396
-- 4.1 percent on taxable income between $2,397 and $3,594
-- 5.1 percent on taxable income between $3,595 and $4,793
-- 6.1 percent on taxable income between $4,794 and $5,991
-- 7.1 percent on taxable income of $5,992 and $8,986
-- 7.4 percent on taxable income of $8,987 and $23,963
-- 7.8 percent on taxable income
of $23,964 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).
A $20 grocery
credit is refundable to full year-residents over 62 who
are not required to file an income tax return ($35 for persons
over 65).
Idaho residents 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.
Sales tax
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. Links to these jurisdictions can be found here.
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. Contact the county
assessor for specific information about valuation and the county
treasurer about payment.
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.
Owner-occupied primary residences
in Idaho qualify for a homeowner's
exemption. This program may reduce property taxes on a home and up to one acre of land by as much as $1,320. The Idaho State Tax Commission administers the Property Tax Reduction program, but homeowners must apply through their county assessor's office.
Contact your county assessor for
specific information about valuation and the county treasurer
about payments.
Inheritance and estate taxes
There is no inheritance tax in Idaho.
For dates of death Jan. 1, 2005,
and later, only federal estate tax returns need to be filed.
Other (intangible personal property taxes)
The state of Idaho has partnered with software developers and the IRS to provide free electronic filing to some taxpayers.
SmartMoney Select 
Sign up now for FREE
