Idaho Tax Guide
5.8%top marginal rate
Idaho switched to a flat income tax of 5.8% in 2023. The state has relatively low property taxes and no estate tax. Idaho has been one of the fastest-growing states, attracting residents from higher-tax western states.
Idaho Tax at a Glance
Income Tax
5.8%
Flat rate
Sales Tax
6%
State-level rate
Property Tax
0.69%
37% below the national average
Estate Tax
No
No state estate tax
How Idaho Compares to the National Average
Notable Tax Facts
- Moved from a progressive system to a flat 5.8% income tax in 2023
- One of the fastest-growing states due to affordability vs. neighboring states
- No estate or inheritance tax
- Groceries are subject to the full 6% sales tax
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Idaho Tax FAQ
What is Idaho's income tax rate?
Idaho has a flat income tax rate of 5.8%. The state converted from a progressive system in 2023 to simplify the tax code.
Does Idaho tax groceries?
Yes. Idaho is one of a small number of states that applies the full sales tax rate to groceries. However, there is a grocery credit to help offset the cost for lower-income households.
Is Idaho growing because of taxes?
Partly. Idaho has attracted many residents from California, Oregon, and Washington seeking lower costs and lower taxes. But affordability, lifestyle, and remote work are also major factors.
Does Idaho tax retirement income?
Idaho does tax most retirement income, but offers some deductions for qualifying retirement benefits.
Compare With Other States
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Educational content, not tax advice. Tax rates are approximate and subject to change. Consult a qualified CPA or tax professional for advice specific to your situation. Data reflects widely-known public information as of early 2026.