Idaho State Tax Commission

Idaho State Tax Commission

Tax Commission News Release

Tax burden for Idahoans is 10th lowest in nation, Tax Commission study shows

BOISE, IDAHO — Dec. 23, 2016 — Idaho has the 10th lowest overall state and local tax burden in the country when compared to all other states and the District of Columbia. Idaho also has the lowest tax burden among western states when measured by the proportion of income that goes to pay for taxes. That’s according to the latest tax burden study published by the Idaho State Tax Commission.  

The annual study, conducted by Property Tax Policy Bureau Chief Alan Dornfest, compares Idaho’s state and local taxes nationally and with those of an 11-state western region. It’s based on data from fiscal year (FY) 2014, the latest year for which U.S. Census Bureau figures are available.

Dornfest noted that Idaho’s tax burden rankings “remain close to those indicated in the past few years since the end of the last recession.”  

Here are a few highlights of this year’s tax burden study, based on taxes paid relative to income:

  • Idaho’s individual income tax burden remains below long-term patterns, going from 14.1% over the U.S. average in FY 2008 to 2% over the average in FY 2010 and 4.2% below the national average in FY 2014. This represents the lowest relative burden for this tax since FY 1984.  
  • Corporate income tax burden is highly volatile, mostly due to variations in corporate taxable income. Looking at taxes paid in comparison to income, Idaho was 14.9% below the U.S. average in FY 2014. 
  • Idaho’s relative sales tax burden continued to decrease slightly in FY 2014 and is now 3.3% below the U.S. average. This again reflects a slightly smaller increase in sales tax collections in Idaho than in the nation as a whole.
  • Idaho’s property tax burden also remains very low at 20.6% below the U.S. average. However, the property tax burden increased to its highest point since FY 2006.

Dornfest’s tax burden study is available on the Tax Commission’s website at tax.idaho.gov under the “Quick Picks” section. For more information, call (208) 334-7742.

 

Posted 12-23-2016
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