2026 Tax Overview
Idaho combines a flat individual-income-tax rate with a 6% state sales tax and locally administered property taxes. Older OCity copy listed a higher rate that is no longer current for 2026 planning.
Income Tax
Idaho's current flat individual-income-tax rate is 5.3%. “Flat” means the same statutory rate applies to taxable income after applicable adjustments; it does not mean 5.3% of gross pay is the final state liability. Credits, deductions, residency, and Idaho additions or subtractions can change the result.
Idaho generally conforms to the federal standard deduction, so the amount depends on filing status and the federal figure applicable to the tax year. Taxpayers should use the Idaho State Tax Commission's Form 40 instructions for the return being filed rather than carrying forward an amount from an older guide.
Sales and Use Tax
The state sales-tax rate is 6%. Some resort communities and other jurisdictions impose local-option taxes, making the combined rate higher for specific locations or transactions. Idaho also imposes use tax when taxable goods are used or stored in Idaho and the appropriate sales tax was not collected.
Property Tax
Property taxes are local. County assessors determine taxable value and local taxing districts determine levies. The homeowner's exemption and other relief programs can reduce taxable value for eligible residents, but qualification and benefit amounts should be verified with the county and state. A statewide effective-rate estimate cannot predict the bill for a particular parcel.
Other Taxes
Idaho separately taxes or regulates fuel, tobacco, alcohol, lodging, and vehicle registration. These charges are not captured by the 6% general state sales-tax rate. Idaho does not impose a separate state inheritance tax or estate tax, although federal estate-tax rules may apply.
Retirement Considerations
Social Security benefits are not included in Idaho taxable income. Other retirement distributions can be taxable, with limited deductions potentially available for certain public retirement benefits and eligible taxpayers. Review the current Form 39R and individual instructions before relying on an exclusion.
Relocation Context
Compared with Oregon, Idaho has a broad sales tax but a lower headline income-tax rate; Oregon has no general sales tax. Compared with Washington or Nevada, Idaho adds personal income tax. Housing price, local property tax, insurance, and wages can outweigh the difference between headline tax rates.
Official Sources
- Idaho State Tax Commission
- Idaho individual income-tax forms
- Idaho sales and use tax
- Idaho Legislature
Reviewed July 10, 2026. Use the official instructions for the tax year being filed. This guide provides general information, not individualized tax advice.