Idaho Tax Guide 2025
Explore Idaho's 2025 state tax rates for income, sales, property, retirement, and more. Learn how Idaho compares nationwide.


Rocky Mengle
Navigating the complexities of state taxes can be daunting, but understanding Idaho's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Gem State's tax system, from income and sales taxes to property taxes and retirement benefits.
Idaho state tax: Overview
When it comes to sales tax, Idaho keeps things relatively low compared to the rest of the country. The state recently switched to a flat income tax rate and doesn't tax Social Security.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But Idaho is one of the few states that still taxes groceries.
Still, alcohol and tobacco taxes are lower than what you’ll find in many other states, and property taxes in the Gem State are also well below the national average.
In the news: Idaho parents with children enrolled in a private or homeschool may be eligible for a new refundable tax credit.
For more information, see Idaho Tax Credit Subsidizing Private School is Law: What You Need to Know.
[Data for this state tax guide was gathered from several sources including the U.S. Census Bureau, the state’s government website, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.]
Idaho income tax
Idaho has a flat income tax rate of 5.8%, according to the Tax Foundation.
Idaho retirement taxes
Idaho taxes most types of retirement income and has a flat tax rate. However, there are no estate or inheritance taxes in Idaho.
- Social Security: Not taxable
- Pensions: Partially taxable (Some military and government pensions might qualify for an exemption)
- 401(k) and IRA Distributions: Taxable
Idaho tax on retirement benefits: Social Security benefits and Railroad Retirement benefits are not taxed by the state.
If age 65 or older (62 or older if you have a disability), you may be able to deduct all or part of distributions from the following retirement plans.
- Military Retirement
- Civil Service Retirement (eligibility is dependent on account number)
- Idaho Firemen's Retirement Fund
- Policemen's Retirement Fund of Idaho City
Idaho sales tax
Idaho's state sales tax rate is 6%. Localities (typically resort communities) can add as much as 3%, but the average combined rate is just 6.03%, according to the Tax Foundation.
- Groceries: Taxable
- Clothing: Taxable
- Prescription drugs: Exempt
How much are property taxes in Idaho?
In Idaho, the average effective property tax rate is 0.47%.
Source: Tax Foundation
Idaho Property Tax Breaks for Retirees
Property Tax Reduction: For 2025, some Idaho residents may qualify for a property tax reduction of up to $1,500. To qualify, homeowners must meet the following criteria.
- Be 65 or older (see below for exceptions)
- Had a income at a certain threshold or less after deducting medical expenses
- You must have lived at the property before April 15, 2025
- The property must be your primary residence
- You must have a current homestead exemption
Some individuals under age 65 may qualify for the property tax reduction. These include people who are blind, widowed, or have a disability. Additionally, you may qualify if you were ever a POW or hostage. Children under 18 without a mother or without a father may also qualify.
Idaho gas tax
Gasoline: $0.32 per gallon.
Diesel: $0.32 per gallon.
Source: Sales Tax Handbook
Idaho alcohol and tobacco taxes
Product | Tax Amount |
---|---|
Cigarettes | $0.57 per pack |
Other Tobacco Products | 40% of wholesale price |
Source: Sales Tax Handbook
Product | Tax Amount |
---|---|
Wine | $0.45 per gallon |
Beer | $0.15 per gallon |
Liquor | state-controlled |
Source: Sales Tax Handbook
Idaho estate and inheritance taxes
Idaho is one of the states with no estate or inheritance taxes.
Related
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
Major Insurers Scale Back Medicare Advantage and Part D Plans for 2026. What You Need to Know.
Beneficiaries enrolled in Medicare Advantage and Part D prescription drug plans might be losing their plan as UnitedHealthcare, Humana, and Aetna (CVS Health) scale back offerings for 2026.
-
I want to retire, but I have to keep working so my adult kids have insurance. Help!
It's a tricky period when your adult child is under 26 but needs health insurance. We ask financial experts for advice.
-
Ohio Property Tax Shock: Why Your New Assessment Is So High (And What Comes Next)
State Taxes Higher home valuations in Ohio have led to homeowner property tax relief. But is it enough?
-
Florida Residents Could Soon Get Property Tax Relief
Property Tax The push for a solution to end high property taxes could lead to significant tax cuts in the Sunshine State next year.
-
New Tax Rules: Income the IRS Won’t Touch in 2025
Income Taxes From financial gifts to Roth withdrawal rules, here’s what income stays tax-free under the new Trump 2025 tax bill, and some information on what’s changed.
-
Three Popular Tax Breaks Are Gone for Good in 2026
Tax Breaks Here's a list of federal tax deductions and credits that you can't claim in the 2026 tax year. Plus, high-income earners could get hit by a 'surprise' tax bill.
-
Tax Brackets 2025 Quiz: How Much Do You Know?
Quiz Test your knowledge of IRS rules that impact how much money you keep in your wallet.
-
About 40% of Heirs Say They Can’t Afford an Inherited Home
Estate Planning The ‘Great Wealth Transfer’ may not help with high property taxes, soaring homeownership costs, and liquidity issues in 2025.
-
Retirees Face a Growing Capital Gains Tax Trap: What's Next?
Home Sales A changing housing market and unchanged IRS exclusion amounts can add up to a headache for many homeowners. Will Congress offer a fix?
-
New York Inflation Refund Checks Are Coming Soon: What to Know Now
Tax Relief Inflation relief checks are on the way for over 8 million New York taxpayers. Here's a full breakdown of who gets a payment and when you may expect yours.