Idaho Property Tax Reduction

The state of Idaho is waiting on data from local taxing districts before it can start calculating property tax savings. The circuit breaker credit accounts for the ability to pay and reduce property taxes on homes and up to one acre of land. Idaho Property Tax Reduction Applications are available at the assessor’s office.

If you are a homeowner, you can claim any available exemptions or deductions to lower your property taxes. Be sure to review your eligibility regularly, as circumstances may change over time. Also, be sure to submit any required documentation on time to ensure you receive the benefit.

This year, Idahoans will see significant reductions in their property taxes thanks to a new law passed by the legislature. Each county will send out 2023 property tax notices with a label showing the amount of relief provided by the state. The legislation includes a credit for homeowners who find that their property taxes consume a disproportionately large share of their income. The circuit breaker credit program operates like an electric circuit breaker to cut off the flow of property taxes when they exceed a certain percentage of a homeowner’s income.

Idaho Homeowner’s Exemption

The State of Idaho reimburses local governments for property tax relief given to those that qualify. This credit is reflected on your property tax notice and shows up as an actual dollar reduction in your taxes.

Homeowners can receive an exemption of up to 50% of their assessed value, including up to one acre of land on their property. Idaho Homeowner’s Exemption is available to owner-occupied homes and manufactured homes that are the deeded owner’s primary residence. The State Tax Commission recomputes the limit each year using the Housing Price Index for Idaho published by the Federal Housing Administration.

The assessor determines your home’s market value and uses data from similar homes in the area to establish a base value. Then, the state determines the amount of property tax you owe based on a percentage of that total value.

Typically, the state legislature allocates part of this property tax revenue to homeowners’ tax relief and school district facility funding. According to documents from the Joint Finance-Appopriations Committee, about $192 million of this year’s property tax revenues will go toward homeowners’ relief. You can find application forms for both programs at your assessor’s office or by visiting the Idaho State Tax Commission website.

Homeowners should apply for the Homeowner Exemption by the second Monday in July each year. The Assessor is also the contact person for the Property Tax Reduction (Circuit Breaker) program, which reduces property taxes based on household income. This credit is designed to help offset regressive property tax increases that hurt low-income Idahoans more than others.