Taxes in Idaho Falls
Idaho levies a real, current flat 5.3% individual income tax (cut from 5.695% via House Bill 40, signed March 2025) and a flat 6% statewide sales tax -- applying identically in Idaho Falls as in Meridian and every other Idaho market, a genuinely different picture from the no-income-tax states built elsewhere in this project.
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Learn moreIdaho's Flat Income Tax Applies the Same in Idaho Falls as Anywhere Else in the State
Idaho levies a flat 5.3% individual income tax as of 2026, cut from 5.695% via House Bill 40 (signed by Governor Brad Little in March 2025) -- this is a statewide rate, not an Idaho Falls-specific one, and applies identically whether income is earned at Idaho National Laboratory, in healthcare, or in any other Idaho Falls industry.
A Flat 6% Statewide Sales Tax
Idaho's statewide sales tax rate is a flat 6%, applying in Idaho Falls the same as anywhere else in the state absent a voter-approved local resort-city add-on (which Idaho Falls itself does not have, unlike Idaho's dedicated resort towns).
Property Taxes Carry a Real, Disclosed Spread -- Pointer to Full Detail
As detailed in full on the property-taxes topic page, Bonneville County's effective property tax rate carries a real, disclosed spread (roughly 0.43%-0.79%) across methodologies reviewed, with Idaho's Homeowner's Exemption offering a real, meaningful reduction for owner-occupants -- covered in full there rather than repeated here.
No Idaho Capital Gains Excise Tax
As with Meridian and every other Idaho market, Idaho does not levy a separate capital gains excise tax the way Washington does -- capital gains are simply taxed as ordinary income under Idaho's flat 5.3% rate, a real, structurally simpler picture than Washington's narrower, high-earner-targeted tax.
Idaho Does Not Tax Social Security Benefits
Idaho does not tax Social Security benefits at the state level, a real, meaningful benefit for retirees -- see the retiring topic page for the fuller retirement-income tax picture, including how Idaho's flat income tax does apply to other retirement income sources.
Key takeaways
- Idaho levies a real, current flat 5.3% individual income tax (cut from 5.695% via House Bill 40, March 2025) -- applying identically in Idaho Falls as everywhere else in the state.
- Idaho's statewide sales tax is a flat 6%, with no Idaho Falls-specific local add-on.
- Bonneville County's effective property tax rate carries a real, disclosed spread (roughly 0.43%-0.79%) -- see the property-taxes topic page for the full detail.
- Idaho does not levy a separate capital gains excise tax the way Washington does -- capital gains are taxed as ordinary income under Idaho's flat rate.
- Idaho does not tax Social Security benefits at the state level, though its flat income tax does apply to other retirement income sources -- see the retiring topic page.
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