Taxes in Idaho depends on the total market value of property which is arrived at each year by an assessor in each county.

To determine a property’s market value, the assessor relies on sales price information for recently sold properties that could be compared in terms of conditions, size, location and other key features.

As soon as the assessed value has been established, exemptions are applied. The biggest exemption in the state is homeowners’ exemption. As mentioned earlier, this exemption can be claimed on owner-occupied primary residence.

The exemption equals 50% of the property’s value and acre of land. As of 2019, this exemption is capped at $100,000. However, if you have properties with tenants living in them, you’re excluded from the homeowners’ exemption.

For example, if you’re a homeowner who lives in his or her home that is worth $180,000, your property’s assessed value is $180,000. As a result, your homeowners’ exemption will be $90,000 (50% of the value of the home).

This means your tax rate will be applied to the total value of the $90,000. The statewide average urban tax rate is 1.438%, while the rural rate is 0.951%.

Local governments in Idaho are permitted to levy taxes at several different levels. As a result, tax rates aren’t the same between counties, cities, school districts, and other tax districts.

Typically, tax rates within cities are above the ones in rural areas. Idaho’s average urban tax rate is currently 1.438% while the rural rate is 0.951%. The two rates are applicable to taxable value and not market value.