Idaho State Taxes

Idaho Income Tax

Effective January 1, 2025, Idaho’s flat tax rate is 5.3% for all individuals. The rate applies to taxable income over:

• $4,812 (single filers)
• $9,623 (joint filers)

The tax income thresholds will be adjusted annually for inflation.

Who Must File?

You must file an income tax return (Form 40) in Idaho if you are a full-year resident and your gross income is at least:

Filing Status	Gross Income
Single – under age 65	$15,000
Single – 65+	$17,000
Married Filing Separately (any age)	$5
Married Filing Jointly (both under 65)	$30,000
Married Filing Jointly (one 65+)	$31,600
Married Filing Jointly (both 65+)	$33,200
Head of Household – under age 65	$22,500
Head of Household – 65+	$24,500
Qualifying Widow(er) – under age 65	$30,000
Qualifying Widow(er) – 65+	$31,600

Part-year residents must file a return (Form 43) if their total combined gross income from Idaho sources, as well as all sources while residing in the state, is more than $2,500.

Non-residents must file an Idaho tax return (Form 43) if their total gross income from Idaho sources is more than $2,500.

Idaho Sales Tax

Idaho has a state sales tax rate of 6%. Local governments (cities and auditorium districts) are also allowed to levy an additional sales tax of up to 3%. These are sometimes referred to as local “option” taxes because the taxes are decided by the voters in the community affected. Although auditorium districts are limited to charging sales tax for lodging only, city governments may levy a sales tax on anything subject to sales tax at the state level.

The average sales tax rate for the state is 6.1%. Sun Valley has the highest sales tax rate at 10% (food and beverage). Most cities in Idaho, however, do not charge above the state’s rate of 6%.

Idaho Property Taxes

The state of Idaho doesn’t receive any property tax. Counties are responsible for levying and collecting this tax. There is no legal limit for how much property taxes can increase or decrease annually. Taxing districts, however, are limited to raising their property tax budgets by no more than 3% each year (with limited exceptions).

The median property tax in Idaho is $1,872 annually. Ada County has the highest property tax at an average of $2,504. The lowest amount is $929 in Idaho County.

Idaho Property Tax

Highest	$2504
Median	$1872
Lowest	$929

Yearly Cost Per Resident

Idaho Tax Holidays

There are no tax holidays scheduled in Idaho at this time.

Idaho Tax Relief

Falling behind on your Idaho taxes can make your balance harder to manage, especially as penalties and interest continue to accrue. The Idaho State Tax Commission may take collection action when tax obligations remain unresolved. Whether you owe taxes because of missed returns, financial difficulties, or business-related tax issues, addressing your tax debt early may help prevent additional complications.

If you can’t pay your Idaho tax balance in full, there may be options available to help you resolve what you owe. Depending on your financial circumstances and eligibility, you may be able to request a payment plan or apply for an Offer in Compromise. Taking action early can also help you potentially avoid enforcement measures such as tax liens, wage garnishments, bank levies, and other collection actions.

Learning how Idaho handles delinquent taxes and understanding the relief options available can make it easier to determine your next steps. By addressing your outstanding balance and working toward a resolution, you can begin bringing your Idaho tax account back into good standing.

Common Idaho State Tax Problems

How Idaho Collects Tax Debt

If you fail to pay your Idaho income taxes on time, the State Tax Commission will send a demand for payment. Failure to pay by the deadline will result in the state issuing a tax lien.

Continued non-compliance will result in the state moving to file a Notice of Levy. This may include wage levy (garnishment), bank levies, as well as levies attached to your real and personal property. If you don’t make payment arrangements, the state may seize your assets and sell them to satisfy your bill.

While you have an outstanding balance, penalties and interest will continue to accrue. Addressing your tax debt as early as possible can help you avoid additional costs and more serious collection actions.

Notice and demand for payment sent to taxpayer

State tax lien filed

Seizure and sale of property (real and personal)

Idaho State Tax Relief Options

Idaho offers a few relief options, including:

• Payment Plans – Idaho offers 12-month and 24-month payment plans for those unable to pay their tax debt in full.
• Offer in Compromise – If there is a doubt as to collectability, doubt as to liability, or exceptional circumstances, Idaho may accept an Offer in Compromise. This essentially reduces or eliminates what you owe.

If you’re experiencing financial hardship and can’t pay your Idaho income tax bill, contact the State Tax Commission as soon as possible to avoid collection actions.

When to Seek Tax Relief Help

If you’re experiencing any of the following, it may be time to explore your tax relief options:

The sooner you address your tax debt, the more options you may have available to resolve your balance and minimize additional collection actions.

Idaho Tax Relief FAQs

How do I set up an Idaho payment plan?

Idaho offers both 12-month and 2-yr payment plans. To apply, you must be current on all other required filings and tax payments. You must also agree to avoid future tax debts.

If you have a letter from the Idaho State Tax Commission, you can request a plan online at tax.idaho.gov/payplan. Enter your information and the letter ID in the upper-right corner of the letter. Complete the online form and submit your request.

You can also request a payment plan online without a letter by going to TAP and clicking “Sign Up.” Choose either to take the same-day access quiz or request a registration code (10 business days). Once you have the access code, fill out the online registration and choose “Request a Payment Plan” from the payment plans panel. Complete the application and submit your request.

If you select the 2-yr payment plan (24 months), a lien may be filed to secure the state’s interest. Payments may also be automatically withdrawn from your bank account. The state may also review your financial situation periodically to determine if there is any change in your ability to pay.

What happens if I ignore Idaho tax notices?

If payment requests from the Idaho State Tax Commission are ignored, it will escalate to collections, including wage garnishments, bank levies, tax liens, and other methods allowed by law. Responding to notices promptly can help you avoid more serious enforcement actions.

Can Idaho garnish my wages for unpaid taxes?

Yes, Idaho can garnish up to 25 % of your gross earnings for unpaid state taxes.

Can Idaho levy my bank account?

Yes. The State Tax Commission can seize your bank accounts (bank levy) to pay back taxes.

How long does Idaho have to collect back taxes?

Once your taxes are assessed, the state generally has 12 years to collect back taxes through levies or a court proceeding.

Idaho Tax Resources

If you need assistance preparing your Idaho state taxes, you can speak with a tax professional from Tax Defense Network by calling 855-476-6920.

You can also visit the State Tax Commission website for additional resources.

• Payment Options
• Where’s My Refund?
• Download Tax Forms
• Customer Service: 800-972-7660 or email taxrep@tax.idaho.gov