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 3 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 2011, Idaho taxpayers work until April 3 to pay their total tax bill, ranked 36th nationally. That's nine days before national Tax Freedom Day (April 12). The Tax Freedom Days of neighboring states are: Washington, April 16 (ranked 5th nationally); Oregon, April 8 (ranked 20th nationally); Nevada, April 8 (ranked 23rd nationally); Utah, April 10 (ranked 19th nationally); Wyoming, April 13 (ranked 11th nationally); and Montana, April 5 (ranked 31st nationally).
Full study of Tax Freedom Day, nationwide and in each state
Idaho's State and Local Tax Burden Below National Average
Idaho's 2009 state and local tax burden of 9.4% of income is below the national average of 9.8%. Idaho's tax burden has decreased overall from 10.3% (17th nationally) in 1977 to 9.4% (28th nationally) in 2009. Idaho taxpayers pay $3,276 per capita in state and local taxes.
Idaho's State-Local Tax Burden, 1977-present
Other States' State/Local Tax Burdens
Map of U.S. Showing all State's Burdens and Ranks
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2009
Idaho's 2012 Business Tax Climate Ranks 21st
Idaho ranks 21st 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 are as follows: Washington (7th), Oregon (13th), Nevada (3rd), Utah (10th), Wyoming (1st), and Montana (8th).
50-State Comparison of Business Tax Climates (data only)
2012 State Business Tax Climate Index, Ninth 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 $26,418. That top rate ranks the state 10th highest among states levying personal income taxes. Idaho's 2009 state-level individual income tax collections were $765 per person, which ranks 28th 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 2009, state-level corporate tax collections (excluding local taxes) were $93mper capita, which ranks the state 32nd among states that tax corporate income.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household
50-State Table of State Corporate Income Tax Collections Per Capita
Idaho Sales and Excise Taxes
Idaho levies a 6% general sales or use tax on consumers, slightly above the national median of 5.85%. In 2007 combined state and local general and selective sales tax collections were $1,148 per person, which ranks 40th highest nationally. Idaho's gasoline tax stands at 25 cents per gallon, which ranks 21st highest nationally. The cigarette tax stands at $0.57 per pack of twenty and ranks 41st 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, cigarette, gas, beer, wine, and spirits tax rates.
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Idaho Property Taxes Modest
Idaho's local governments collected $857.32 in property taxes during fiscal year 2006, which is the latest year available from the Census Bureau. Idaho is one of the 13 states that collect no state-level property taxes. The state’s per capita property tax collections in FY 2006 ranked 37th 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
