Taxes in Ketchum
Idaho's real, current flat 5.3% state income tax applies to Ketchum residents, alongside a real, distinct resort-city tax structure -- an 8% minimum combined general-retail sales tax plus a specific 3% Local Option Tax on room and liquor-by-the-drink sales, genuinely different from every other market in this project's Idaho build.
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Learn moreIdaho's flat 5.3% state income tax
Idaho levies a real, current flat individual income tax of 5.3%, cut from 5.695% via House Bill 40 (signed March 2025). This is a real, current, statewide rate, applying the same in Ketchum as anywhere else in Idaho.
Ketchum's real, distinct resort-city Local Option Tax (LOT)
Ketchum is one of a small number of Idaho 'resort cities' -- a defined legal category for small, tourism-dependent municipalities -- eligible for a real, voter-approved Local Option Tax on top of Idaho's flat 6% statewide sales tax. Effective since January 1, 2014, Ketchum's LOT runs 3% on room sales (including short-term rentals under 30 days) and liquor-by-the-drink sales, and 2% on most other retail sales (groceries and motor vehicles exempt), producing a minimum combined general-retail rate of 8%.
A genuinely low property tax rate, with an important nuance
Ketchum's own effective property tax rate ran 0.34% -- genuinely low in percentage terms, and below Blaine County's own broader 0.31% median. But a low rate applied against Ketchum's genuinely very high assessed home values can still produce a substantial absolute dollar bill -- worth budgeting for the real dollar amount, not just the low percentage.
Sun Valley's own even higher combined rate
This project's own idaho.js record separately cites the adjacent city of Sun Valley as reaching Idaho's single highest combined resort-city sales tax rate at 9% -- confirm the specific applicable rate for any Sun Valley-versus-Ketchum-specific purchase.
Key takeaways
- Idaho's flat 5.3% state income tax applies statewide, including in Ketchum.
- Ketchum's resort-city Local Option Tax produces a minimum 8% combined general-retail sales tax rate, with a 3% rate specifically on rooms and liquor-by-the-drink.
- Ketchum's low property tax rate (0.34%) can still mean a substantial dollar bill given very high assessed home values.
- The adjacent city of Sun Valley reaches Idaho's single highest combined resort-city rate at 9%.
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