The Tax Foundation

Research Areas

Idaho

The Facts on Idaho’s Tax Climate

Here are some basic facts on Idaho’s tax system and how it compares to other states:

Tax Freedom Day Arrives on April 20 in Idaho
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Idaho taxpayers had to work until April 20 to pay their total tax bill, ranked 19th nationally. That's three days before national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states are: Washington, April 29 (ranked 5th nationally); Oregon, April 16 (ranked 32nd nationally); Nevada, April 26 (ranked 11th nationally); Utah, April 21 (ranked 17th nationally); Wyoming, April 20 (ranked 21st nationally); and Montana, April 8 (ranked 48th nationally).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Idaho's State/Local Tax Burden Below National Average in 2007
Estimated now at 10.1% of income, Idaho’s state/local tax burden stands at 35th highest nationally, below the national average of 11.0%. Idaho taxpayers pay $3,367 per capita for state and local taxes on per-capita state income of $33.274.
Idaho's State-Local Tax Burden, 1970-present

Idaho’s 2008 Business Tax Climate Ranks 32nd
Idaho ranks 31st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states were as follows: Washington (11th), Oregon (10th), Nevada (3rd), Utah (17th), Wyoming (1st), and Montana (6th).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

Idaho’s Individual Income Tax System
Idaho's personal income tax system consists of eight brackets with top rate of 7.8% kicking in at an income level of $ 23,963. That top rate ranks the state 11th highest among states levying personal income taxes. Idaho's 2005 individual income tax collections were $728 per person, which ranks 29th highest nationally. 
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Idaho’s Corporate Income Tax System
Idaho's corporate tax structure consists of a flat rate of 7.6% on all corporate income. Among states levying corporate income taxes, Idaho's rate ranks 20th highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $135.22 per capita, which ranks the state 30th among states that tax corporate income.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Idaho Levies Sales Tax at National Median; Gasoline Tax among the Highest in the Nation
Idaho levies a 6% general sales or use tax on consumers, which is above the national median of 5.4%. State and local governments combined collected approximately $1,069 per person in 2005 in general sales taxes, which ranks 39th highest nationally. Idaho's gasoline tax stands at 25 cents per gallon, which ranks 20th highest nationally. The cigarette tax stands at $0.57 per pack of twenty and ranks 38th highest nationally. The sales tax was adopted in 1965, the gasoline tax in 1923 and the cigarette tax in 1945.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Idaho Property Taxes Modest
Idaho's local governments collected $1,084,470,000 in property taxes during fiscal year 2004, which is the latest year available from the Census Bureau. Idaho is one of the 13 states that collect no state-level property taxes, meaning its per capita property tax collections equaled $777 for all levels of government in FY 2004, ranking it 36th nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Idaho is a Beneficiary State
Idaho taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of Federal tax collected in 2005, Idaho citizens received approximately $1.21 in the way of federal spending. This ranks the state 20th highest nationally and represents a slight rise from 1995 when Idaho received $1.14 per dollar of taxes in federal spending (then ranked 20th highest). Neighboring states and the amount of federal spending they received per dollar of federal taxes paid were: Washington ($0.88), Oregon ($0.93), Nevada ($0.65), Utah ($1.07), Wyoming ($1.11), and Montana ($1.47).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Articles from the Tax Foundation