Taxes in Idaho

Idaho Tax Rates, Collections, and Burdens

How does Idaho’s tax code compare? Idaho has a graduated individual income tax, with rates ranging from 1.00 percent to 6.00 percent. Idaho also has a 6.00 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. Idaho’s tax system ranks 17th overall on our 2022 State Business Tax Climate Index.

Each state’s tax code is a multifaceted system with many moving parts, and Idaho is no exception. The first step towards understanding Idaho’s tax code is knowing the basics. How does Idaho collect tax revenue? Click the tabs below to learn more! You can also explore our state tax maps, which are compiled from our annual publication, Facts & Figures: How Does Your State Compare?

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