Yes, there is state tax in Idaho. The state charges a flat 5.3% income tax and a 6% sales tax, along with excise taxes on gasoline and tobacco. Property taxes are set and collected locally, not by the state, and Idaho imposes no estate, inheritance, or gift tax.
Income Tax
Idaho taxes individual income at a flat 5.3%. A small slice at the bottom is taxed at 0%: the first $4,811 of taxable income for single filers, and the first $9,622 for married couples filing jointly. Everything above those thresholds is taxed at 5.3%.1Idaho State Tax Commission. Individual Income Tax Rate Schedule The thresholds adjust for inflation each year, so pull the current schedule before you file.
Whether you have to file depends on filing status, age, and residency. A single filer under 65 generally needs to file once gross income passes about $15,750; for married couples filing jointly, the threshold is around $31,500. If you’re a nonresident with Idaho-source income, the rule is stricter: you file once that Idaho income tops $2,500.2Idaho State Tax Commission. Individual Income Tax Basics
Sales Tax
The statewide sales tax is 6% on most retail purchases of goods and certain services.3Idaho State Legislature. Idaho Code 63-3619 – Imposition and Rate of the Sales Tax Businesses selling taxable items collect it and send it to the state.
Idaho is unusual in taxing groceries. Unprepared food is subject to the full 6% rate. To offset it, the state offers a grocery credit you claim on your income tax return. For 2026, the credit is $155 per person, or up to $250 if you keep receipts showing the actual sales tax you paid on food.4Idaho State Tax Commission. Idaho Food Tax Credit You can claim it even if you owe no income tax.
Prescription drugs and many medical items are exempt. That includes insulin, hearing aids, prosthetic devices, and durable medical equipment when bought with a practitioner’s prescription.5Idaho State Tax Commission. Introduction to Medical Products Exemption
Local Sales Tax in Resort Cities
Most Idaho cities and counties cannot add their own general sales tax. Designated resort cities can. More than 20 currently do, including Sun Valley, Ketchum, McCall, Sandpoint, Driggs, and Hailey.6Idaho State Tax Commission. City Sales Taxes Rates and coverage vary. Some cities tax the same things the state taxes; others limit their local tax to lodging, restaurant meals, and drinks by the glass. If you’re spending money in one of these towns, check the current local rate with the city or the Tax Commission.
Excise Taxes on Fuel and Tobacco
Idaho’s gasoline tax is 33 cents per gallon, dedicated to roads and bridges.7Tax Foundation. 2025 Gas Taxes by State Cigarettes are taxed at 57 cents per pack, about 2.85 cents per cigarette, and other tobacco products at 40% of the wholesale price.8Idaho State Tax Commission. Cigarette Tax Rate These are on top of any sales tax at the register.
Property Tax Is Local, Not State
Idaho does not levy a state property tax. Counties, cities, school districts, fire districts, and other local taxing districts each set budgets and levy property taxes to pay for them. Because those districts overlap, two homes a few miles apart can face very different combined rates.
Homeowner’s Exemption
If you own and occupy your home as your primary residence, you can apply for an exemption that removes 50% of the home’s value from the tax rolls, up to $125,000 in assessed value. It covers the house and up to one acre. You apply once through your county assessor, and it stays in place until you sell or stop using the home as your primary residence.9Idaho State Tax Commission. Homeowner’s Exemption Apply as soon as you close.
Property Tax Reduction
Idaho also runs a property tax reduction program for lower-income homeowners. For 2026, you may qualify if your 2025 income (after medical deductions) was $39,130 or less and you meet at least one additional condition: 65 or older, blind, widowed, disabled, a former prisoner of war, or a parentless child under 18. The reduction runs from $250 to $1,500 off your bill, and the application window is January 1 through April 15, 2026.10Idaho State Tax Commission. Property Tax Reductiona> Miss April 15 and you wait a year.
Taxes Idaho Does Not Impose
Idaho has no state estate tax, no inheritance tax, and no gift tax. Heirs owe the state nothing based on the value of what they inherit. Federal estate tax still applies to estates above the federal exemption, but Idaho itself stays out of it.