Idaho Tax Commission releases annual tax burden study
Friday February 7, 2025BOISE, Idaho — Feb. 7, 2025 — The Idaho State Tax Commission has published the latest tax burden comparative of Idaho and the United States. The study compares Idaho’s state and local taxes with those of other states and the District of Columbia. The Tax Commission conducted the annual study based on data from fiscal year (FY) 2022, the latest year for which U.S. Census Bureau figures are available.
Idaho ranks 41st in overall state and local tax burden nationally when measured by the percentage of income that goes to pay taxes. It ranks 43rd when comparing taxes paid per person. (A ranking of 51 shows the lowest tax burden.)
Idaho also has the third lowest tax burden among 13 western states when measured by the percentage of income that goes to pay for taxes.
“2022 has been the most advantageous tax year for Idaho taxpayers in the last 25 years,” said Tax Commission Chairman Jeff McCray. “Idaho is 15.7% below the U.S. average tax rate for personal income paid in taxes and 17.7% below the U.S. average rate for taxes paid per person.”
The taxes compared include individual income, corporate income, sales, property, and motor vehicle.
New this year, the study’s comparative tables are interactive. The tables combine U.S. Census Bureau and Bureau of Economic Analysis data to calculate the measures used to compare the average relative tax burden between Idaho and the United States. The interactive tables start with 2022 data and will include later years going forward.
You can find the 2022 Comparative Tax Potential: A State and local Tax Burden Comparative of Idaho and the United States on the Tax Commission’s website at tax.idaho.gov through the Reports and Statistics link on the home page. The Tax Burden Study Comparative Tables also are available from the Reports and Statistics page.