Why It Matters
Idaho residents face a combined state and local tax burden of 7.04%, placing the state in the lower half nationally for total taxation. The ranking affects household budgets and the state’s competitive position for attracting new residents and businesses.
What Happened
A new WalletHub study ranked all 50 states by total tax burden, measuring property, income, and sales tax rates as a percentage of income. Idaho landed at No. 42 overall, with Alaska claiming the lowest burden at 4.92% and Hawaii the highest at 13.3%.
Idaho’s tax burden breaks down to 1.92% for property taxes, 1.84% for individual income tax, and 3.29% for sales and excise taxes.
By The Numbers
- Idaho total tax burden: 7.04%
- Alaska lowest burden: 4.92%
- Hawaii highest burden: 13.3%
- California total burden: 9.24% (ranked 11th)
- Seven states charge zero income tax
Zoom Out
The study reveals wide variation in tax policy across states. Hawaii, New York, and Vermont impose the three highest combined burdens, all exceeding 11%. California’s 11th-place ranking surprises many observers who associate the state with high taxes, though its top marginal income tax rate of 13.3% remains the nation’s highest.
Among Western states, Oregon maintains the highest income tax rate at 4.76%. Seven states charge no income tax at all, including neighboring Wyoming. Property taxes range from Vermont’s 4.89% to Alabama’s 1.40%.
According to WalletHub analyst Chip Lupo, living in a state with lower tax burden reduces financial stress for residents. The findings provide taxpayers a comparative measure of their state’s fiscal demands.
What’s Next
State tax policies remain subject to legislative action and ballot measures. Idaho lawmakers continue debating tax reform proposals each session, with property tax relief emerging as a recurring priority. The rankings will shift as states adjust rates and structures in response to budget needs and competitive pressures.
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