September 1, 2022
State surpluses and strong revenue growth are leaving many states with a big opportunity this year. Idaho is no exception and is faced with options to advance policies that directly improve people’s lives in education, health care, housing, child care, transportation, and other budget areas. A 2022 Special Legislative Session bill that reduces taxes and […]
February 7, 2022
The tax cuts proposed in HB 436 would benefit wealthy Idahoans the most. The bill would also collapse the state’s five tax brackets to four, and would lower the income tax rate on the wealthiest tax bracket from 6.5% to 6%. Read more
February 7, 2022
From housing to child care, hard-working Idaho families face high costs in our growing state. Since 2018, Idaho’s tax code has supported families through the state Child Tax Credit (CTC). In the American Rescue Plan Act (ARPA), Congress approved a temporary change to expand the definition of “child” to include 17-year-olds in tax year 2021. […]
May 4, 2021
House Bill 389 is a complicated bill that would affect many different components of the Idaho property tax statute. Revenue from property taxes, both for real property and business personal property, support local public services – such as roads, courts, and schools. Property taxes are regressive, meaning they fall harder on lower-income Idahoans than others. […]
April 26, 2021
The Idaho Legislature is considering a proposal that would reduce the number of income tax brackets from seven to five, cut income and corporate tax rates and provide a one-time tax rebate. HB380 is a revised version of HB332, with one significant change, the elimination of two tax brackets, which serves to make Idaho’s tax […]
March 18, 2021
The Idaho Legislature is considering a proposal that would cut income and corporate tax rates and provide a one-time tax rebate. Under the proposal, the tax benefits from this proposed legislation are heavily lopsided. Taking all provisions into account, households with very modest earnings would receive a $78 average tax cut, and the top 1 […]
November 3, 2018
The biggest drivers of the inequality in Idaho are the sales and property taxes. In every bracket of income measured by the Institute’s report, the amount that families paid in state and excise taxes went down as their total income increased. The lowest-earning 20 percent spent twice as much of their annual income on property taxes as the highest 20 percent, with an average of 3.3 percent paid on their property compared to 1.6 percent.
October 22, 2018
Low-income Idahoans were hit hardest by property and sales taxes, ITEP reported. The lowest-earning segment spent 3.3 percent of income on property tax and 6 percent of income on sales and excise taxes (the latter are sometimes known as “sin taxes”).
October 20, 2018
Study finds lower income Idahoans paying higher tax rates than those with higher incomes.
May 11, 2018
This guide provides a brief summary of proposed tax changes put forth by the candidates. Estimates of the distributional impact on Idaho taxpayers and state revenue and provided by the Idaho Center for Fiscal Policy.
March 21, 2018
A proposal before the Legislature seeks to amend the child tax credit that was created through recent legislation passed by both chambers and signed by the Governor. This analysis presents the effect of the revised credit amount proposed in House Bill 675 together with the provisions of House Bill 463 on Idaho families, as enacted. […]
February 20, 2018
House Bill 463 would make substantial changes to Idaho’s tax code, in part as a response to recent federal tax cuts. The legislation would also cut Idaho’s state income tax rates for households and corporations, changing significantly the way the income tax load is carried by residents. The proposal also includes a nonrefundable state child tax credit, although this does not offset the tax increases for some Idaho families from full conformity.
February 16, 2018
Idahoans believe that everyone should pay their fair share. But the passage of the federal Tax Cuts and Jobs Act in December 2017 raised concerns about potential negative impacts on Idaho families with children. If Idaho chooses to update its tax code to align fully with the federal changes (a policy choice called ‘conformity’), an estimated 66 percent of Idaho families with 1 to 2 dependents will see a state tax increase and 80 percent of Idaho families with 3 or more dependents will see a state tax increase. To mitigate these negative impacts, Idaho lawmakers are considering the creation…
February 6, 2018
One motivation for reducing taxes this year is to offset the increase in revenue that conformity – aligning our state tax code with recent federal changes – will bring. If Idaho chooses to conform, the state will collect additional revenue in the range of $82 million to $97.4 million. This means that some Idahoans – particularly those with multiple children - will pay more in state taxes.
January 30, 2017
The Idaho Legislature is considering a proposal that would cut top income tax and corporate tax rates. The bill will also eliminate the income tax on the first $750 of taxable household income. This proposal would substantially reduce Idaho’s general fund revenue. Estimates of the impact range from $51 million to $56 million. A majority […]
January 29, 2016
“Idaho households with incomes between $41,000 and $64,000 a year would see a $23 decrease in their tax liability, on average. The top 1% – those with incomes of $444,000 and above – would see an $815 tax cut, on average. The exact tax cut that a household in any range would receive depends upon […]
December 18, 2015
Idaho has a graduated personal income tax, with rates increasing with household income. This has a balancing effect on the sales and property taxes,which generally cost middle and lower-earning households a larger share of their income. When all state and local taxes are combined, Idaho’s tax distribution is relatively even across the income spectrum, […]
March 27, 2015
A new proposal in the Idaho Legislature would dramatically shift the way taxes are collected and generate a new revenue source for roads and bridges. The proposal has several components which in combination mean that taxpayers across the bottom 80% of the income distribution will pay more, on average.
February 23, 2015
A new proposal in the Idaho Legislature would dramatically shift the way taxes are collected and generate a new revenue source for our neglected roads and bridges. The proposal has several components which in combination mean that taxpayers across the bottom 95% of the distribution will pay more, on average. The proposal is designed to […]