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): 6.1%
- 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 $120-per-person sales tax credit (Those over 65 get $140) is in place.
Personal Income Tax
- Personal Income Tax Rate Range: Flat rate of 5.3% on income over $2,500.
- Standard deduction: Single Filing Status: $15,000.
- 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: A law signed March 6, 2025, expands the state’s income tax exemption on military retirement pay to cover veterans of all ages and disability levels. The deduction is limited to the maximum Social Security benefit ($48,516 for individual filers at age 67 for 2025).
- Military Disability Pay: Exempt
- VA Disability Dependency & Indemnity Compensation Benefits: Exempt
- SBP/SSBP/RCSBP/RSFPP: Exempt (see "Military Retirement Pay" above)
*$48,516 of retirement income ($68,796 for joint filers) may be exempt if 65 or over (or 62 or over and disabled) but must be reduced by any Social Security benefits
Property Tax
- Local municipalities average .53% 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 or maximum of $125,000.
- 65 and Over/Disabled/100% Disabled Vet/Blind/Widowed: Taxes may be reduced by up to $1,500 if meet income requirements. Deferrals available.
- 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: https://tax.idaho.gov
