The In's and Out's of Property Taxes in Idaho

Every state has their own way of doing property taxes.  From how and when they assess and determine value, to homeowner exemptions, to taxation and payment.

It can get confusing, especially in Idaho.  Why?  Well, for one, property taxes in Idaho are paid in arrears.  That means we don’t pay our property taxes for the current year until December 20th of that same year and then, we only pay half.

Confused yet?

Ok, here’s the timeline…

  1. January 1st is the date used to determine your property assessment value
  2. May is the month assessed value’s are mailed out to owners
  3. June is the month you have to appeal your assessed value
  4. November is the month your tax bill is mailed to you
  5. December 20th the 1st half of your current year taxes are due
  6. June 20th (of the next year), the 2nd half of the previous years taxes are due.

In the state of Idaho, the assessment ratio is determined by the State Tax Commission and the tax rate is determined by the budget of the county/city your property is located in. The county/city can increase their budget on an annual basis – up to a 3% increase.

Idaho residents pay less in property taxes than non-residents.  We receive a homeowners exemption, equal to 50% of the value of our primary residence (and land) or $101,153, whichever is less. That means on a home and land valued at $200,000, an Idaho resident (on their primary residence) pays taxes on $100,000 (which is 50% of the value of the property).  All other properties receive taxation on the full value of their property and land.

How are assessments determined? The beauty of living in Idaho is that we are a non-disclosure state. This means that sales prices are not a matter of public record, and, you do not have to provide your sales price to the assessors office (even if they ask). Assessments, for the most part, are usually lower than true market values of properties. The newer the property, the closer the assessed value is to true market value (obviously the assessor can see what a builder is selling properties for, just like everyone else).

With the volatility in the market the past few years, it’s interesting to watch the assessors office revalue properties.  They’ve been doing a pretty good job.

If you have any other questions about property taxes on your property in the North Idaho area, give us a call.  We’ll help.

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