Taxes in Rexburg
Idaho's real, current flat 5.3% state income tax and flat 6% statewide sales tax (with zero Rexburg-specific local add-on) apply to Rexburg residents, layered with Madison County's genuinely low effective property tax rate.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
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) -- the endpoint of five consecutive years of rate cuts, described by Governor Little's office as the largest income tax cut in Idaho history. This is a real, current, statewide rate, not Rexburg-specific.
Idaho's 6% sales tax, with zero Rexburg local add-on
Idaho's flat statewide sales tax runs 6%, and Rexburg is not one of Idaho's small, population-under-10,000, tourism-dependent 'resort cities' (Sun Valley, Ketchum, McCall) eligible for a voter-approved local-option add-on -- so the combined rate paid in Rexburg is simply the flat 6% state rate, distinct from Ketchum's own resort-city tax structure covered in ketchum-id.js.
Madison County's genuinely low property tax rate
Madison County's median effective property tax rate ran 0.54%, with a median annual tax bill of $1,903 -- $497 below the $2,400 national median. Within the county, rates ranged from 0.47% (Menan) to 0.59% (Newdale).
Capital gains taxed as ordinary income, statewide
As documented in full in this project's coeur-d-alene-id.js and idaho-falls-id.js records, Idaho taxes capital gains as ordinary income at the same flat 5.3% rate (with a real 60% deduction available for qualifying Idaho-based property held 12+ months) -- a statewide mechanism, not Rexburg-specific.
Key takeaways
- Idaho's flat 5.3% state income tax applies statewide, including in Rexburg.
- Rexburg's combined sales tax is simply Idaho's flat 6% state rate -- Rexburg has zero local add-on, unlike Idaho's resort cities.
- Madison County's property tax rate (0.54% median) runs genuinely low.
- Idaho taxes capital gains as ordinary income at the flat 5.3% rate, with a real 60% deduction for qualifying property held 12+ months.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Rexburg overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert