Idaho Tax Policy & Rates 2026
Income tax, sales tax, property tax, and overall tax burden for Idaho in 2026, with political context.
No
No Income Tax
5.8% (flat)
Income Tax Rate
#43
Tax Burden Rank (1=highest)
#27
Property Tax Rank (1=highest)
Tax Policy Overview
Idaho converted to a flat income tax and has cut rates significantly. The state has a moderate overall tax burden. Rapid property value appreciation has created political pressure around property tax bills even as the rate is modest.
Key Tax Rates
| Tax Type | Rate / Status |
|---|---|
| Income Tax | 5.8% (flat) |
| No Income Tax | No |
| Sales Tax | 6.0% |
| No Sales Tax | No |
| Corporate Tax | 5.8% |
| Property Tax Rank | #27 nationally (1=highest) |
| Overall Tax Burden Rank | #43 nationally (1=highest) |
Political Context
Idaho Republicans have cut income taxes multiple times and moved to a flat tax. Property tax relief has been a top political priority as home values surged with in-migration. The legislature has passed homestead exemptions and circuit breakers to protect existing homeowners from tax increases.