Is Idaho Tax-Friendly for Retirees? Here’s What You Need to Know
Thinking about retiring in Idaho? You’re not alone. Between the slower pace of life, natural beauty, and lower cost of living, Idaho has become a top choice for retirees—and yes, taxes play a big role in that decision.
Here’s the good news: Idaho is fairly tax-friendly for retirees, especially compared to states with higher income or property taxes. But there are a few nuances you should know.
Social Security? Tax-Free.
Idaho does not tax Social Security income, which is a huge win for most retirees. If Social Security makes up the bulk of your retirement income, this can significantly reduce your tax burden.
Other Retirement Income? It Depends.
Private pensions, 401(k)s, and IRA distributions are taxed as regular income in Idaho. However, military and select public pensions may qualify for partial deductions.
Property Taxes Are Reasonable—And There’s Help.
Idaho’s property taxes are relatively low. According to the Tax Foundation, Idaho ranks 36th in the nation for property tax burden. Plus, if you’re 65 or older, you may qualify for Idaho’s “circuit breaker” program, which offers property tax reductions of up to $1,500 for eligible low- to moderate-income seniors.
Sales Tax? Middle of the Road.
Idaho has a 6% statewide sales tax, with no local add-ons in most places. Groceries are taxed, but you may be eligible for a grocery tax credit when filing state income taxes.
The Bottom Line
If you’re looking for a retirement destination that offers scenic beauty, outdoor lifestyle, and a moderate tax environment, Idaho checks a lot of boxes. You get peace of mind with no tax on Social Security, plus housing that’s still more affordable than in many neighboring states.
At Abmont Realty Group, we help retirees relocate to Boise, Eagle, and the greater Treasure Valley every day. Whether you’re downsizing, buying your dream home, or just want to explore the area, we’re here to guide you.
Call Abmont Realty Group at 208-789-4320 to explore your options or get a free home value estimate.