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Idaho

The Facts on Idaho’s Tax Climate

Last updated July 1, 2009

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

Tax Freedom Day Arrives on April 12 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 2009, Idaho taxpayers had to work until April 12 to pay their total tax bill, ranked 18th nationally. That's the day before national Tax Freedom Day (April 13). The Tax Freedom Days of neighboring states are: Washington, April 29 (ranked 5th nationally); Oregon, April 9(ranked 26th nationally); Nevada, April 8 (ranked 29th nationally); Utah, April 13 (ranked 13th nationally); Wyoming, April 5 (ranked 35th nationally); and Montana, April 3 (ranked 42nd nationally).
Full study of Tax Freedom Day, nationwide and in each state

Idaho's State/Local Tax Burden Above National Average
Estimated at 10.1% of income, Idaho's state/local tax burden percentage stands at 13th highest nationally, above the national average of 9.7%. Idaho taxpayers pay $3,670 per capita instate and local taxes.
Idaho's State-Local Tax Burden, 1977-present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008

Idaho’s 2010 Business Tax Climate Ranks 18th
Idaho ranks 18th 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 (9th), Oregon (14th), Nevada (4th), Utah (10th), Wyoming (2nd), and Montana (6th).
50-State Comparison of Business Tax Climates (data only)
2009 State Business Tax Climate Index, Sixth 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 $25,441. That top rate ranks the state 11th highest among states levying personal income taxes. Idaho's 2006 individual income tax collections were $846 per person, which ranks 25th 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 2007, state-level corporate tax collections (excluding local taxes) were $127 per capita, which ranks the state 34th 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 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 6%.State and local governments combined collected approximately $746 per person in 2006 in general sales taxes, which ranks 37th 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 and Excise Tax Rates
50-State Table of  State and Local General Sales Tax Collections Per Capita and Per Household
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and 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

Tax Data from The Tax Foundation