Idaho Property Taxes — Taxman Cometh. By Brent Regan (08/05/25)

Idaho’s property tax calculations are complicated, but ultimately the increases are up to YOU, the voter, and the people whom you elect to run your local government!

Who Increases Your Property Taxes?

Many citizens vehemently want to abolish property taxes in Idaho, stating they put an unfair burden on property owners and prevent our property from truly being our own. We cannot disagree. Unfortunately, it’s not that simple.

Did you know that VOTERS choose — through ballot tax levy measures — whether to tax themselves for added goodies that counties, municipalities, schools, and special districts provide? These goodies all go into the local budgets. The fewer goodies voters approve, the lower their property taxes will be.

So one cannot simply blame the Idaho legislature for property taxes. The onus truly belongs with local officials making budgets, the taxing districts asking for more money to provide more services or maintain existing services, and WE THE PEOPLE approving tax levies. If we want to reduce property taxes, we must reduce our asks.

The November 2025 elections are close at hand, and off-year elections are when tax levies typically are placed on the ballot — when few citizens are paying attention and even fewer are voting.

Please read Brent Regan’s article for more information about how property taxes are calculated and collected. Then realize it’s up to voters to put on the brakes if we don’t want to be taxed — literally — out of house and home.

Regan’s article focuses on Kootenai County and does not specifically mention the impact of voter approved tax levies. However, the issues are the same for all of Idaho.

Summary (Grok ai, edited)

Property taxes in Kootenai County are driven by budgets set by over 240 elected officials across 45 taxing districts, including the county, municipalities, schools, and special districts.

County Commissioners approve budgets and levy rates, while Idaho code limits budget growth to 8% annually through new construction, a 3% baseline increase, and foregone taxes.

The levy rate, calculated by dividing total budgets by the assessed value of taxable properties, determines individual tax payments, typically around 1% of property value.

Assessed values don’t directly affect tax amounts, as levy rates adjust to meet budgets.

The Homeowner’s Exemption reduces taxes for primary residences, shifting the burden to commercial and secondary properties.

💡Tip: When selecting local candidates, voters should focus on candidates’ budget management plans, as budgets directly impact taxes.

Taxing Entities and Budgets

• Kootenai County has 240+ elected offices across 45 taxing districts (county, cities, schools, etc.).

• Districts set budgets, not taxes directly; budgets drive tax amounts.

• County Commissioners approve budgets and levy rates, also handling assessment appeals.

Budget Growth Limits

• Idaho code caps annual budget increases at 8%, driven by:

  • Growth from new construction/annexation (no tax increase for existing properties).

  • 3% baseline increase (raises taxes).

  • Foregone taxes (up to 1% for operations, 3% for infrastructure if not taken previously).

• Budget growth is discretionary; e.g., Post Falls Highway District cut budgets by 1% for three years.

Tax Calculation Process

• Total district budgets divided by total assessed property value = levy rate (~1%).

• Levy rate x individual property’s assessed value = tax owed.

• Changes in assessed values don’t alter tax amounts, as levy rates adjust to meet budgets.

Homeowner’s Exemption

• Reduces taxable value of primary homes (and up to 1 acre) by 50% or $125,000, whichever is less.

• Shifts tax burden to commercial properties and second homes.

Voter Guidance

• Focus on candidates’ budget management plans, not just tax promises, as budgets determine tax impact.