Low Taxes & Fees in North Idaho
Idaho state tax revenues are well balanced from three sources: Income tax (corporate and personal), Sales/Use tax and Property tax.
Income Tax - Corporate/Business
Idaho taxable income is taxed at the rate of 7.6% with a $20 minimum.
Investment Tax Credit - Idaho offers a 3% credit for qualifying investments within the state.
Other Credits - Corporations are allowed credit for certain nonbusiness-related contributions, e.g. education and rehabilitation. Additional qualifying credits include, but are not limited to: New Jobs Income Tax Credit, 5% Research and Development Income Tax Credit, and 3% Broadband Telecom Tax Credit.
Net Operating Loss (NOL) - You can carryback up to $100,000 of a net operating loss per tax year for two years. Any loss not absorbed in two years (plus any amount in excess of $100,000) can be carried forward to offset income for up to 20 years.
Income Tax - Personal
A tax is imposed on Idaho taxable income of individuals, estates and trusts. Personal income tax rates range from 1.6% on taxable income above $1,321 ($2,642 married filing joint) up to 7.8% on taxable income greater than $26,418 ($52,826 married filing joint).
Credits include the Grocery Tax Credit, Investment Tax Credit and credits for certain contributions, e.g. education and rehabilitation.
Sales/Use Tax
Retail sales and rentals of tangible personal property are taxed at 6%. If a sales tax is not applied at the point of purchase, a 6% use tax is due from the consumer. Exemptions from the Idaho sales and use tax include, but are not limited to:
- Production Exemption
- Pollution Control
- Fleet Vehicles - Interstate Commerce
Property Tax
Property taxes are collected by individual counties for taxing districts which provide local services. These revenues are for local, not state, use. Property taxes apply to homes, farms, businesses, industry, warehouses, offices, all privately-owned real estate, operating property and business personal property such as machinery and equipment.
Exemptions include inventories, livestock, recreational vehicles and more. Tax credits are available to elderly, widowed and disabled homeowners through the Circuit Breaker program.
More information on property taxes: Kootenai County Treasurer - 208-446-1005, www.KCGov.US.
Links and More Information
Idaho State Tax Commission
800 Park Blvd., Plaza IV (P.O. Box 36)
Boise, Idaho 83722
208-334-7660 or 800-972-7660 or 208-769-1500
www.Tax.Idaho.gov