Feb 11, 2015

In Fiscal Year (FY) 2016, Idaho collected $6 billion in state and local taxes—or $3,553 for every man, woman, and child. While this is an impressive sum of money, it tells us little about whether or not the average Idaho taxpayer can afford this level of taxation?

To better answer this question, this analysis will calculate Idaho’s Tax Burden relative to the private sector. Ultimately, it is the private sector that creates new wealth and income. A high tax burden means a state is hobbling its private sector relative to other states and reducing their long-run economic growth potential.

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016

As shown in Chart 1, Idaho’s state and local tax burden (tax collections divided by private sector personal income) was the fifteenth lowest in the nation for FY 2016 at 13 percent—or -9 percent below the national average of 14.3 percent.

#Idaho state and local #taxburden in FY 2016 was the 15th lowest in the nation at 13%— -9% below US average of 14.3% http://bit.ly/2FX9C8F @keypolicydata #IDpol #IDleg #PolicyData (click to tweet)

As shown in Chart 2, Idaho’s tax burden has increased over time by 46 percent to 13 percent in FY 2016 from 8.9 percent in FY 1950.

#Idaho state and local #taxburden has increased 46% between FY 1950 (8.9%) to 2016 (13%) http://bit.ly/2FX9C8F @keypolicydata #IDpol #IDleg #PolicyData (click to tweet)

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016

To put Idaho’s tax burden into perspective, let’s compare it to size of major industries in the state (as a percent of private sector income). As shown in Chart 3, Idaho’s 14.4 percent tax burden is greater than these combined industries: manufacturing (10.7 percent), educational services (1 percent), and utilities (0.8 percent).

#Idaho state and local #taxburden > manufacturing, educational services, and utilities http://bit.ly/2FX9C8F @keypolicydata #IDpol #IDleg #PolicyData (click to tweet)

Idaho’s lower than average state and local tax burden is driven by lower taxes such as the property tax burden (3.6 percent, 17th lowest) and all other taxes burden (1.9 percent, 17th lowest).

Of course, the tax burdens for local government can vary just as much as they do among the 50 states. As such, we have also calculated the local government tax burden for every County in Idaho—this includes every taxing jurisdiction within the geographic county borders whether it is a city, a special district, or county government itself.

The 20 Idaho counties with the highest local government tax burden include:

• Clark County, ID (11.9 percent)
• Valley County, ID (8.8 percent)
• Butte County, ID (8.4 percent)
• Lewis County, ID (7.8 percent)
• Clearwater County, ID (7.2 percent)
• Shoshone County, ID (6.8 percent)
• Caribou County, ID (6.8 percent)
• Power County, ID (6.7 percent)
• Teton County, ID (6.5 percent)
• Washington County, ID (6.4 percent)
• Elmore County, ID (6.4 percent)
• Camas County, ID (6.3 percent)
• Owyhee County, ID (6.1 percent)
• Adams County, ID (6.0 percent)
• Fremont County (includes Yellowstone Park), ID (5.8 percent)
• Bonner County, ID (5.5 percent)
• Nez Perce County, ID (5.2 percent)
• Benewah County, ID (5.1 percent)
• Bannock County, ID (5.0 percent)
• Boise County, ID (4.8 percent)

The 20 Idaho counties with the lowest local government tax burden include:

• Canyon County, ID (4.3 percent)
• Kootenai County, ID (4.3 percent)
• Custer County, ID (4.3 percent)
• Madison County, ID (4.2 percent)
• Oneida County, ID (4.2 percent)
• Twin Falls County, ID (3.9 percent)
• Payette County, ID (3.4 percent)
• Lincoln County, ID (3.4 percent)
• Ada County, ID (3.2 percent)
• Idaho County, ID (3.1 percent)
• Lemhi County, ID (3.0 percent)
• Gooding County, ID (2.9 percent)
• Jerome County, ID (2.9 percent)
• Bonneville County, ID (2.8 percent)
• Bingham County, ID (2.7 percent)
• Jefferson County, ID (2.7 percent)
• Bear Lake County, ID (2.4 percent)
• Minidoka County, ID (2.4 percent)
• Cassia County, ID (2.3 percent)
• Franklin County, ID (2.0 percent)

Click here to view tax burden data by state, type of tax, and for years 1950 to 2016

Finally, don’t forget to watch our exclusive time-lapse video of state and local tax burdens over the last 66 years! See if your state has been above or below the national average?