What is the property tax rate in Idaho?
The property tax rate in Idaho averages 0.50% of market value for owner-occupied homes (Tax Foundation 2026, using the 2024 American Community Survey), one of the lower figures in the country. The Idaho State Tax Commission’s own figures put the 2025 average rate, based on levied amounts, at 0.680% in urban areas, 0.423% in rural areas and 0.580% overall.
The gap between those numbers matters for apartment owners. The homeowner’s exemption takes up to $125,000 off the taxable value of an owner-occupied home, which pulls homeowners’ effective rate down. A rental building gets no such exemption, so its tax is close to the full levy rate times its market value.
How Idaho assesses property
Idaho assesses all taxable property every year at market value as of January 1, under Idaho Code 63-205. The county assessor estimates what a typical buyer would pay on that date, and the property is taxed on 100% of that value, less any exemptions.
There is no assessment ratio and no cap on how fast value can rise. The Tax Commission states plainly that Idaho law does not limit annual increases or decreases in property value, and there is no legal cap on how much a tax bill can rise or fall. If apartment values in your area jump, your assessed value can jump with them in a single year.
The 3% budget limit and how levy rates are set
Idaho limits budgets, not values. Each taxing district, such as a city, county, school district or highway district, can raise its property tax budget by no more than 3% a year, plus amounts for new construction and annexation, unless voters approve more.
A district’s levy rate is its property tax budget divided by the total taxable value in the district, and the rates of every district covering your parcel are added together. When values climb faster than budgets, rates fall. That is why the Tax Commission’s average urban rate dropped from 1.327% in 2019 to 0.733% in 2023 as values rose. A building whose value rose faster than its neighbors’ still paid more, because it carried a larger share of the same budgets.
Does Idaho reassess property when it is sold?
No sale is needed for reassessment, because every property is revalued at market each January 1. A sale does not trigger a special reset the way it does in states with acquisition-value caps.
A sale still matters. The price is strong evidence of market value, and an assessor who sees a building trade above its assessed value is likely to move the next January 1 value toward the price. In practice, a buyer should underwrite next year’s tax at the purchase price times the current levy rate, and a seller whose assessed value lags the market should expect buyers to do the same.
Idaho property tax rates by county
County average rates in Idaho ranged from 0.299% in Blaine County to 1.210% in Nez Perce County in 2025. The figures below come from the Tax Commission’s 2025 Average Property Tax Rates report, based on levied amounts, dated November 25, 2025. Urban rates apply inside cities and are higher than rural rates, and most apartment buildings sit inside city limits.
Rates are a percent of taxable value. The big markets fall in the middle: Ada County, which includes Boise and Meridian, averaged 0.652% urban and 0.642% overall; Canyon County, with Nampa and Caldwell, 0.692% urban; and Kootenai County, with Coeur d’Alene, 0.541% urban.
| County | Urban rate | Overall average | Group |
|---|---|---|---|
| Nez Perce | 1.400% | 1.210% | Highest |
| Power | 1.484% | 1.042% | Highest |
| Lewis | 1.315% | 1.010% | Highest |
| Jerome | 1.314% | 1.000% | Highest |
| Latah | 1.099% | 0.978% | Highest |
| Teton | 0.410% | 0.355% | Lowest |
| Adams | 0.571% | 0.353% | Lowest |
| Bear Lake | 0.485% | 0.337% | Lowest |
| Valley | 0.470% | 0.320% | Lowest |
| Blaine | 0.325% | 0.299% | Lowest |
Reading an Idaho tax bill
An Idaho tax bill is the sum of every district that covers your parcel. The Tax Commission’s own example shows a home with $175,000 of taxable value after the homeowner’s exemption, a city levy of 0.001728 and a combined levy of all districts of 0.01352, for a bill of $2,366. The city’s share is only about an eighth of the total; schools, the county, highway districts and others make up the rest.
Levies are written as decimals, so 0.01352 means 1.352% of taxable value. Two buildings a mile apart can pay different rates if one sits inside city limits or in a different school district. When you compare buildings or check a buyer’s underwriting, use the combined levy printed on the parcel’s own bill, not a county average.
Effective rate or levy rate: which one to use
Use the levy rate on your own bill for your building, and the 0.50% effective rate only to compare Idaho with other states. The Tax Foundation figure divides median taxes paid by median home value for owner-occupied homes, and those homes get the homeowner’s exemption that a rental never does.
The Tax Commission’s 0.580% overall average for 2025 is closer to what a rental pays, and the 0.680% urban average closer still for a building in a city. Even those are averages across all property. A Boise building pays the combined Ada County, city, school and other district rates for its own tax code area.
How to appeal your assessment in Idaho
File your appeal with the county clerk for the board of equalization by the end of business on the fourth Monday of June, under Idaho Code 63-501A. The Tax Commission’s first step is to contact the assessor’s office, which can fix factual errors such as unit count, square footage or condition before a formal appeal.
The board of equalization usually hears appeals from late June through the second Monday in July. If you disagree with its decision, you have 30 days to appeal to the State Board of Tax Appeals or to district court. For an apartment building, the strongest evidence is an income approach built on your actual rent roll and expenses, plus sales of similar buildings.
- January 1: valuation date for the year.
- Fourth Monday of June: last day to appeal to the county board of equalization.
- 30 days after the board’s decision: deadline to appeal to the Board of Tax Appeals or district court.
- November: tax bills mailed; payment due December 20, or half by December 20 and the rest by June 20.
Property tax exemptions and Idaho apartments
The homeowner’s exemption is Idaho’s main property tax break, and rentals do not get it. Under Idaho Code 63-602G it exempts the lesser of $125,000 or 50% of market value, but only for an owner-occupied primary dwelling.
One case is worth knowing. The statute lets a homestead be part of a multidwelling building, so an owner who lives in one unit of a fourplex can claim the exemption on that unit. The rented units are taxed in full. If you live in your building and plan to sell, the buyer will lose that exemption unless they move in, so their tax bill will be higher than yours.
Worked example: property tax on a $2M Idaho apartment building
Take a 20-unit building in Boise assessed at its $2,000,000 market value. At Ada County’s 2025 urban average of 0.652%, the yearly tax is $13,040. The same building at Nez Perce County’s urban rate of 1.400% would owe $28,000, and in Blaine County at 0.325% it would owe $6,500.
Now the sale. Suppose the building is assessed at $1,800,000 and owes $11,736 at 0.652% when a buyer pays $2,000,000. If the next January 1 assessment moves to the price and the rate holds, the buyer’s bill rises to $13,040, an increase of $1,304 a year. At an illustrative 6% cap rate, that is about $21,733 off what a buyer would pay.
That is a small effect compared with states that reset to the price after years of capped growth. Because Idaho revalues every year, the assessed value is usually already close to market, and the tax a buyer inherits is close to the one you pay.
| Scenario | Taxable value | Yearly tax |
|---|---|---|
| Ada County urban, 0.652% | $2,000,000 | $13,040 |
| Nez Perce County urban, 1.400% | $2,000,000 | $28,000 |
| Blaine County urban, 0.325% | $2,000,000 | $6,500 |
| Before sale, assessed below price | $1,800,000 | $11,736 |
| After sale, assessed at price | $2,000,000 | $13,040 |
How property tax affects your sale price
Buyers value Idaho apartments on net operating income, so property tax comes straight off value at the market cap rate. The main Idaho surprises are not caps ending but values catching up and owner-occupant exemptions dropping off.
Before you list, gather the last three assessment notices and tax bills, note any appeal you won and why, and be ready to show what share of the building, if any, carries a homeowner’s exemption. A buyer who sees an assessment well below the asking price will build the catch-up into the offer.
Selling an apartment building in Idaho
Skyline buys apartment buildings with five or more units in Idaho, from Ada and Canyon counties to Kootenai, Bonneville and Twin Falls. We buy directly, close on your timeline, and can work inside 1031 deadlines. We underwrite from your actual assessment and tax bills, so you see the effect of any catch-up in our number from the start.
For the income tax on a sale, see Idaho capital gains tax on real estate. For deposit and eviction rules that come with the building, see Idaho landlord-tenant law for apartment owners.
