That’s right, the title says “Taxes,” not “Texas.” Even in Idaho, taxes are out of control. Please enjoy — if that’s the right word — this mini-series on Idaho taxes. But, before you read, one word of reminder: high taxes are merely the symptom of the true disease: out-of-control government spending. This symptom inflicts real pain on Idaho families and businesses, and if we tackle the taxes, government will be required to control its disease.

The Big Taxes Picture for Idaho

To keep this simple, this “Taxes” series analyzes taxes levied by the state (Legislature and governor), without the monkey business of transfers and balances, federal spending, and dedicated funds (all of which are problematic, too). That is, we are focused on the lion’s share of the state general fund, paid for by coercing income taxes, sales taxes, and corporate taxes from Idaho families and businesses. We also consider property taxes assessed at the local level by cities, counties, school districts, and special taxing districts.

All told, the big categories of state taxes total over $5.9 billion for Fiscal Year 2026. And the property tax amounted to an estimated $2.3 billion for 2024. Inflation and local tax increases likely push property taxes to around $2.4 billion this year.

Real Tax Relief for Real Idahoans: A Series

The “big three” taxes will be our focus in 2026: Sales taxes, property taxes, and income taxes. If the Legislature could impose spending cuts back to pre-COVID levels and adopt proper spending restraint going forward, all the major tax categories could and should be cut by significant amounts.

Here is what our team at the Idaho Freedom Foundation proposes:

1. Repeal the tax on groceries. At a minimum, this would reduce sales tax burdens on families by $160 million (if the tax credit is also repealed) or $406 million (without removing the tax credit).

2. Eliminate property taxes. Enact the roadmap to repeal the property tax, saving Idahoans $2.4 billion per year once it is completely eliminated.

3. Reduce income taxes. Continue to decrease income tax rates from 5.3% toward zero (in lieu of removing property taxes) or to 5% (while removing property taxes altogether).

In short, if the Legislature and the governor want to lead out on conservative tax policy, they need to undo much of what has been done. Idaho leadership hasn’t reflected the conservative nature of its people. Idaho didn’t become a high-tax state overnight, so it may take some time to roll back the big taxes on property and income, but immediate and significant tax cuts are possible via repealing the tax on groceries and taking a positive first step on property tax elimination.

We are told this is the most conservative legislature in Idaho history. It’s true, there are more conservatives in office than there have been in recent memory, but will tax policy show it? Freedom Index scores increased in 2025, but the Spending Index is another story; legislator scores have remained painfully below 40% in both chambers. This must change. If the Legislature is truly conservative, we must see results favorable to families and businesses (enact tax cuts), and not to big government (effect spending decreases).