How much is Idaho state tax? Idaho charges a flat 5.3% individual income tax on taxable income above a small zero-bracket amount, a 6% statewide sales tax, and property taxes set locally by counties, cities, and school districts. Those three levies are the bulk of what you pay as a resident. Rates and thresholds shift from year to year, and the figures below reflect the most recent schedules published by the Idaho State Tax Commission for 2025 and 2026.
Idaho Income Tax
Idaho uses a flat income tax with a small introductory bracket taxed at 0%. For the 2025 tax year, single filers pay 5.3% on taxable income above $4,811, and married couples filing jointly pay 5.3% on taxable income above $9,622. Income below those thresholds is taxed at 0%, which works like a built-in exemption for low earners.1Idaho State Tax Commission. Individual Income Tax Rate Schedule
Your Idaho filing status has to match the one on your federal Form 1040. Whether you must file depends on gross income, age, and filing status. For recent tax years the filing threshold has run around $15,750 for a single filer under 65 and about $31,500 for a married couple filing jointly where both spouses are under 65. These numbers tend to rise each year with the federal standard deduction, so check the Tax Commission’s current instructions before deciding. Nonresidents have to file with Idaho-sourced gross income of $2,500 or more.
Standard Deduction
Idaho conforms to the federal standard deduction. For the 2026 tax year that’s $16,100 for single filers and $32,200 for married couples filing jointly.2Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026 You can itemize instead if that works out better, no matter what you did federally. Deductions reduce the income the 5.3% rate touches.
Credits That Lower Your Bill
Credits reduce the tax you owe dollar for dollar. The one most Idaho residents claim is the Grocery Tax Credit, which is refundable and designed to offset the sales tax you pay on food. The Legislature raised it to $155 per person in 2025. Residents 65 and older get a higher amount. Because it’s refundable, you receive it even if you owe no income tax.
A few other credits and deductions commonly come up:
- Contributions to Idaho’s IDeal 529 college savings program are deductible up to $6,000 for single filers and $12,000 for joint filers.
- Donations to qualifying Idaho scholarship organizations earn a credit capped at $500 per taxpayer or $1,000 for joint filers, and the credit cannot exceed 50% of your income tax or 50% of the donation, whichever is smaller.3Idaho State Tax Commission. Donations to Educational Charities
- Qualifying capital gains from the sale of certain Idaho property can be partially deducted, which matters for real estate and business sales.
Sales Tax
Idaho’s statewide sales tax is 6%, applied to most retail goods and some services. Groceries are taxable, putting Idaho among the small number of states that fully tax food bought for home consumption. The Grocery Tax Credit is the state’s way of easing that burden. A 2026 ballot initiative proposes eliminating the grocery tax and repealing the credit, but it has not been enacted as of this writing.
Certain resort cities add a local option tax on top of the 6% rate. Ketchum, for example, adds 3% on lodging and liquor-by-the-drink sales and 2% on other retail purchases.4City of Ketchum Idaho. Local Option Tax (LOT) In the areas with the biggest add-ons, total sales tax can reach 9%.
Prescription drugs, insulin, hearing aids, eyeglasses, prosthetic devices, durable medical equipment, and a long list of related medical supplies are exempt when purchased under a prescription or practitioner’s order.5Idaho State Legislature. Idaho Code 63-3622N – Prescriptions
Property Tax
Property tax in Idaho is entirely local. Counties, cities, and school districts each set their own rates to pay for schools, roads, and emergency services. The state does not collect property tax.
Your county assessor sets your property’s market value as of 12:01 a.m. on January 1 each year.6Idaho State Tax Commission. Assessor’s Calendar Each taxing district divides its approved budget by the total assessed value of all property in the district to get a mill levy. The combined mill levies of every district covering your property make up your total rate. Because the formula is budget-driven, your bill can rise even when your assessed value stays flat, if the district’s budget grows or other properties in the district lose value.
Homeowner’s Exemption
The biggest break for Idaho homeowners is the Homeowner’s Exemption, which shields part of your primary residence from tax. It removes 50% of your home’s assessed value or $125,000, whichever is less, and covers the home plus up to one acre of land.7Idaho State Legislature. Idaho Code 63-602G – Property Exempt From Taxation – Homestead You have to own and occupy the property as your primary residence, and you need to apply through your county assessor’s office.
A quick example. If your home is assessed at $350,000, half would be $175,000, but the $125,000 cap kicks in, so your taxable value becomes $225,000. At a combined mill levy of 1.2%, you’d owe roughly $2,700 instead of $4,200.
Retirement Income
Idaho taxes most retirement income, including distributions from 401(k) plans, traditional IRAs, and pensions. Social Security benefits are taxed only to the extent they’re included in your federal adjusted gross income, so many retirees owe little or nothing on Social Security alone.
A separate retirement benefits deduction exists for narrow categories of government and military retirees: retired federal civil service employees, retired Idaho firefighters, retired Idaho city police officers, and retired members of the U.S. military (or their unmarried surviving spouses). You generally must be at least 65, or at least 62 and classified as disabled. Military retirees under 62 can still qualify if they worked during the tax year and earned enough to require filing a federal return.8Idaho State Legislature. Idaho Code 63-3022A – Deduction of Certain Retirement Benefits The maximum amount is pegged to the maximum Social Security retirement benefit and is adjusted annually. The deduction does not apply to private-sector pensions or IRA distributions, which is a common point of confusion.
Filing Deadline and What Late Costs
Idaho individual income tax returns (Form 40) are due April 15. If that falls on a weekend or holiday, the deadline shifts to the next business day. You can get an automatic extension to file later, but the extension does not push back the payment deadline. Anything you owe still has to be paid by April 15 to avoid interest and penalties.
The Tax Commission encourages electronic filing, which speeds up refunds. Most tax software lets you e-file your Idaho return with your federal return. The state’s Quick Pay portal takes ACH bank transfers at no cost. Card payments go through the portal too but carry a service fee. You can also mail a check with your return or send one separately using Form ID-VP.
Miss the April deadline without paying, and interest starts right away. For 2026 the annual interest rate on unpaid tax is 6%.9Idaho State Tax Commission. Interest Rates Separate penalties apply for both late filing and late payment. If you can’t pay in full, the cheapest move is filing on time and arranging a payment plan. Ignoring the deadline is the most expensive option, because the late-filing penalty stacks on top of the late-payment penalty and interest.