Idaho taxes capital gains at 5.695%. Combined with federal taxes, your effective rate on a home sale could reach 24.5%.
ID State Rate
5.695%
Flat tax rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
24.5%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Idaho is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Idaho don't qualify for the exclusion. You'll owe 5.695% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Idaho, homes sold in January sell for 11% more than those sold in August (-7%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Idaho and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
Wyoming0% | 0% | $0 | No state income tax |
Nevada0% | 0% | $0 | No state income tax |
| 4.65% | $6,975 | Flat tax rate | |
IdahoYou | 5.695% | $8,543 | Flat tax rate |
| 5.9% | $8,850 | Top marginal rate; 2% credit available | |
| 7% | $10,500 | 7% on gains > $250K (since 2022) | |
| 9.9% | $14,850 | Top marginal rate |
Selling in Wyoming instead of Idaho would save $8,543 in state tax on a $150K gain.
Idaho imposes a flat 5.695% income tax rate on capital gains, treating them as ordinary income. The Boise metro has seen explosive growth from California transplants, creating gains that often exceed the federal exclusion.
Idaho does not offer a preferential rate or deduction for capital gains. All gains are subject to the full 5.695% rate regardless of holding period.
The state's rapid appreciation means many long-time homeowners face significant tax bills. A Boise home purchased for $250K in 2015 might sell for $550K today, creating a $300K gain before exclusion.
Sellers relocating from California benefit from Idaho's substantially lower rate (5.695% vs. 13.3%), saving over $11,000 per $150K in taxable gains.
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