Tax Rates and Overview

Most of Idaho’s tax revenue comes from three sources: income tax (personal and corporate), sales and use tax, and property tax. The Idaho State Tax Commission collects income tax and sales and use tax. Property taxes fund local government and are imposed and collected by the county where the property is located.

Beer and wine tax

Beer tax rate: $0.15/gallon

Wine tax rate: $0.45/gallon

Cigarette tax

Rate: $0.57/package of 20

Wholesalers pay this tax to the Tax Commission. For more information, see What is Idaho's cigarette tax rate?

For more information, see What's the difference between cigarette tax and taxes on other tobacco products?

Corporate income tax

Rate: 7.6 %

The income tax rate is 7.6 percent on the Idaho taxable income of a corporation transacting business or authorized to transact business in Idaho or with income attributable to Idaho. If the tax is less than $20, a minimum tax payment of $20 is required. Nonproductive mining companies are not required to pay the minimum $20 tax.

Electricity tax

Rate: 1/2 mill per kilowatt hour

Water-generated electricity.

Exception: There is no tax on the sale of electricity used for irrigation, manufacturing, mining, milling, smelting, refining, or processing.

Estate tax

Idaho doesn't have an estate tax, although it did at one time. For this to be reinstated, either the Idaho Legislature or Congress would have to change the law.

For more information, see estate tax frequently asked questions.

Fuels tax

For gasoline tax, special fuels tax, and transfer fee rates, see What are the Idaho fuels tax rates?

Off-road users get refunds for tax on gasoline used in equipment and auxiliary engines.

Greater Boise Auditorium District, Hotel/Motel Room

Rate: 5%

Hotel/motel occupants in the Boise metropolitan area. For more information, see the Greater Boise Auditorium District website.

Exception: Long-term residents (more than 30 days in a row).

Illegal Drug Stamp Act

Rates:

• $3.50/gram for marijuana.
• $200/gram for controlled substances sold by weight.
• $200 per 50 dosages of controlled substances sold by dosage.

Individual income tax

Rate: 1.6% to 7.8%

Individual (personal) income tax is graduated so higher earnings are taxed at a higher rate. Idaho residents are taxed on their total income, even if it’s earned in another state or country. Idaho income tax brackets are adjusted for inflation each year. For more information, see the 2011 income tax rate schedule and What is Idaho's individual income tax rate?

Credits to offset income tax due include: the grocery credit; credit for tax paid to other states; and credits for donations to Idaho educational entities and some nonprofit youth and rehabilitation facilities.

Are retirees taxed on their retirement income?

Inheritance gift tax

Idaho has no inheritance tax or gift tax.

Mine license tax

Rate: 1% of the value of ores mined or extracted.

Property tax

Average Urban Rate: 1.275%

Average Rural Rate: .832

You can calculate a rough estimate of property taxes by multiplying the average tax rate by the property value, less exemptions. The actual tax rate is the sum of the tax rates of all the taxing districts in one location.

Two types of tax relief are available to Idaho homeowners.

To get more information about your county, visit the Idaho Association of Counties (IAC) website. (Once there, click on the county name above the photo.)

Sales and use tax

Rate: 6%

Retail sales and rentals of tangible personal property; admission fees and fees for recreation or hotel/motel rooms (except stays of more than 30 days).

Use tax is a tax on goods that you put to use or store in Idaho, and it is paid directly to the state, instead of the seller of the goods. Use tax applies if sales tax was not paid at the point of purchase. For more information, see What is Idaho's sales tax rate? and our Use Tax brochure.

Exception: Utilities, motor fuels (which are taxed separately), prescription drugs, and tangible personal property used in manufacturing, farming, processing, mining, and fabricating. Read our sales tax brochures for more information about exemptions.

Severance tax

Rate: 2% of the market value of oil and gas produced or sold in Idaho.

Tobacco tax

Rate: 40% of the wholesale price for all tobacco products except cigarettes.

For more information, see What's the difference between cigarette tax and taxes on other tobacco products?

Travel & Convention Hotel/Motel Tax

Rate: 2%

Hotel/motel occupants and campground users. For more information, see Does Idaho have a travel and convention tax?

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Last updated Dec. 30, 2011