Idaho Income Tax
Idaho State Tax
Idaho state tax revenues have three main sources: income tax, sales tax, and property tax. The Idaho State Tax Commission regulates various tax laws and procedures in the state, including the settlement of tax rates, filing of state tax returns, and collection of sales tax and state income tax.
With a maximum marginal tax rate of 7.80% across eight income tax brackets, the Idaho state income tax has one of the highest rates in the United States. All Idaho residents are required to file their tax returns for all income sourced inside and outside Idaho. Part-time and non-residents are likewise required to file income tax returns for income made within the state.
Idaho levies 6% sales tax on the sale or lease of tangible personal properties and services. Like its income tax, Idaho sales tax rates are among the highest in the country. Furthermore, the state has 12 special sales tax jurisdictions that levy local sales taxes along with the state sales tax.
Unlike sales and income taxes, property taxes are collected by the county where a property is located. The exact amount of tax collected depends on the tax rate and the assessed value of the property. The average property tax rate in Idaho is 0.69% of a property’s fair market value.
The county with the highest annual property tax proceeds is Blaine County and the county with the least is Custer County. Property taxes are generally used to fund the local government, schools, road projects, law enforcement, and other county operations.