Idaho State Tax Commission

Idaho State Tax Commission

Tax Commission News Release

Idaho Tax Commission releases annual tax burden study

BOISE, IDAHO — Oct. 27, 2017 — The Idaho State Tax Commission has published the latest tax burden study, which compares Idaho’s state and local taxes with those of other states and the District of Columbia. Alan Dornfest, the Tax Commission’s property tax policy bureau chief, conducted the annual study based on data from fiscal year (FY) 2015, the latest year for which U.S. Census Bureau figures are available.   

“Idaho’s state and local tax burden rankings haven’t changed significantly in recent years when compared with other states,” stated Dornfest, who noted that readers should use caution in interpreting the results.  

“The study reflects overall tax burden relative to other states,” Dornfest said. “It doesn’t reflect whether taxes are higher or lower than in other states for selected groups, such as high or low income taxpayers or small or large business.” 

Idaho ranks 37th in overall state and local tax burden nationally when measured by the percentage of income that goes to pay taxes. It ranks 48th when comparing taxes paid per person. (A ranking of 51 shows the lowest tax burden.)  

Idaho also has the second lowest tax burden among 11 western states when measured by the percentage of income that goes to pay for taxes. 

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 slightly below long-term patterns, at 1.4% below the national average in FY 2015. Although historically still low, the relative burden of this tax is the highest since FY 2011.  
  • Corporate income tax burden is highly changeable, mostly due to variations in corporate taxable income. Looking at taxes paid in comparison to income, Idaho was 6.9% below the U.S. average in FY 2015, higher than our burden in FY 2014, but similar to our relative burden in FY 2013. 
  • Idaho’s sales tax burden increased slightly in FY 2015 and is now 2.4% below the U.S. average.
  • Idaho’s property tax burden also increased slightly, but remained very low at 19.8% below the U.S. average. Property tax burden is at its highest point since FY 2006.

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

 

Posted 10-27-2017
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