Idaho does not rely on taxes to fund overspending

When it comes to taxes, Idaho tends to be a friend of the people.

The state issued a record 826,370 refunds to Idaho taxpayers this year. More than half a billion dollars, $579,108,938, in refunds were issued since the tax season began. This represents a 25% increase in the number of Idaho taxpayers receiving a refund, and a 17% increase in the amount of refunds issued over last year. 

“We have delivered record tax relief over the last eight years, and we continue to lower the tax burden on hardworking families, keeping more money in their pockets and helping make life more affordable," Gov. Brad Little said. "By conforming with the federal One Big Beautiful Bill and maintaining our commitment to responsible fiscal management, we are ensuring Idahoans get back more of what they earn while keeping our economy strong and growing,” Little said.

Little said Idaho continues to rank among the top 10 states in the nation for the lowest overall state and local tax burden.

The Idaho State Tax Commission published the latest tax burden comparative of Idaho and the United States. The study compares Idaho’s state and local taxes with those of other states and the District of Columbia.

The report shows Idaho ranks 46th in overall state and local tax burden nationally when measured by the percentage of income that goes to pay taxes. It also ranks 46th when comparing taxes paid per person. A ranking of 51st shows the lowest tax burden.

Idaho has the second-lowest tax burden among 13 western states when measured by the percentage of income that goes to pay for taxes and when comparing taxes paid per person.

Idaho taxpayers also pay significantly less than the national average — 16.6% less when measured as a share of personal income and 29% less on a per-person basis.

“Idahoans work hard for their money, and they deserve to keep more of it. Ranking among the lowest in the nation for tax burden doesn’t happen by accident – it is the result of disciplined budgeting, responsible policies, and an unrelenting focus on the taxpayer. We will continue to deliver tax relief while investing in the priorities that keep Idaho strong,” Little said.

Unlike our friends in Washington state that have yet to see a tax they don't like, Idaho does not rely on taxing its residents to fund a bloated budget. The strong independence of the people who call Idaho home is a reason why this state does not turn to taxes around every corner.