Road Taxes and Funding by State, 2025
The amount of revenue states raise through roadway-related revenues varies significantly across the US. Only three states raise enough revenue to fully cover their highway spending.
5 min read
Idaho | #11 Overall
Idaho‘s tax system ranks 11th overall on the 2025 State Tax Competitiveness Index. Idaho’s individual and corporate income taxes are imposed at a single rate, which was reduced from 5.8 percent to 5.695 percent in 2024. However, the state’s throwback rule is inefficient and taxes “nowhere income” in the state from which sales are made because the seller lacks sufficient nexus to be taxed in the destination state, leading to taxation in the wrong state at the wrong rate—making the corporate income tax more of a disincentive to in-state activity. Idaho also fails to conform to federal provisions to provide first-year expensing of business machinery and equipment purchases. Idaho is also among the minority of states that tax global intangible low-taxed income (GILTI), with a 15 percent inclusion.
Idaho has a generous de minimis exemption for tangible personal property, eliminating compliance costs for many smaller and mid-sized businesses. The state’s income tax has a 30-day withholding threshold but a single-day filing threshold, meaning that an individual who works even one day in the state is expected to file and remit taxes, even though the income would not be withheld by their employer.
| Category | Rank | Rank Change | Score |
|---|---|---|---|
| Overall | 11 | 1 | 5.60 |
| Corporate Taxes | 21 | 1 | 5.35 |
| Individual Income Taxes | 11 | 0 | 5.85 |
| Sales Taxes | 9 | -2 | 5.46 |
| Property Taxes | 3 | 0 | 6.36 |
| Unemployment Insurance Taxes | 35 | -2 | 4.61 |
- Learn more about Idaho Taxes
-
Share your state results
Compare Neighboring States
Tax Data by State
Get facts about taxes in your state and around the U.S.
More on Idaho
Property Taxes by State and County, 2025
Property taxes are the primary tool for financing local governments. While no taxpayers in high-tax jurisdictions will be celebrating their yearly payments, property taxes are largely rooted in the benefit principle of taxation: the people paying the property tax bills are most often the ones benefiting from the services.
9 min read
State Individual Income Tax Rates and Brackets, 2025
Individual income taxes are a major source of state government revenue, accounting for more than a third of state tax collections. How do income taxes compare in your state?
12 min read