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Tax-exempt goods Examples include computer software, prescription medications, and qualified purchases made with food stamps. We recommend businesses review the laws and rules put forth by the Idaho State Tax Commission to stay up to date on which goods are taxable and which are exempt, and under what conditions.
Idaho is tax-friendly toward retirees. Social Security income is not taxed. Withdrawals from retirement accounts are fully taxed. Wages are taxed at normal rates, and your marginal state tax rate is 0.0%.
Your total prior years income, after deducting medical expenses, was less than or equal to the maximum income level listed in the annual Property Tax Reduction Brochure. Youre any of the following as of January 1 of the year you are applying for the program: 65 or older.
Who qualifies. You might qualify for this program in 2024 if all of these apply: Your total 2023 income, after deducting medical expenses, was $37,000 or less. You were 65 or older, blind, widowed, disabled, a former POW or hostage, or a motherless or fatherless child under 18 years old.
Exempt income is income that you dont pay tax on (that is, its tax-free). You may still need to include this income in your tax return for use in other tax calculations. Examples of exempt income can include: some government pensions and payments, including the invalidity pension. some education payments.
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Services in Idaho are generally not taxable, unless the service you provide includes creating or manufacturing a product. Here are some examples of taxable services in Idaho: Furnishing, preparing, or serving food, meals, or drinks.
Tax-exempt personal property The first $250,000 of a taxpayers personal property not otherwise exempt in each county. Taxpayers using the property in a common enterprise or in related organizations with essentially the same management are eligible for only one $250,000 exemption per county.
Youre any of the following as of January 1 of the year you are applying for the program: 65 or older. Former POW or hostage. Motherless or fatherless child under 18.
The 2023 Idaho Legislature passed tax laws providing property tax reduction, capping the cigar tax, increasing the dependent care tax deduction, and more. Below are some highlights. For more details about the legislation, visit the Legislatures website.
Idaho Tax Rates, Collections, and Burdens Idaho has a flat 5.8 percent individual income tax. Idaho also has a 5.80 percent corporate income tax rate. Idaho has a 6.00 percent state sales tax rate, a 3.00 percent max local sales tax rate, and an average combined state and local sales tax rate of 6.02 percent.

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