Idaho State Tax Commission

Idaho State Tax Commission

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Tax Commission News Release

Tax burden for Idahoans is 9th lowest in nation, Tax Commission study shows

BOISE, IDAHO — Feb 19, 2015 — Idaho has the 9th 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) 2012, the latest year for which census figures are available.

Dornfest noted that Idaho’s tax burden rankings “remain close to those indicated in the years leading up to the recent major 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 continued to decrease, going from 14.1% over the U.S. average in FY2008 to 2% over the average in FY2010 and 2.3% below the national average in FY2012. This represents the lowest relative burden for this tax since FY1984.  
  • Corporate income tax burden is highly volatile, mostly due to variations in corporate taxable income. Looking at taxes paid in comparison to income, there was a 9.8% increase on collections in Idaho for FY2012, compared with a 1% increase in collections nationally. 
  • Idaho’s relative sales tax burden continued to decrease slightly in FY2012 and is now 3.7% below the U.S. average. As in FY2011, this again reflects a slightly smaller increase in sales tax collections in Idaho than in the nation as a whole.

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 02-19-2015

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