Have you applied for you Idaho Homeowners Exemption yet?
If you recently purchased a house or own a home and made it your primary residence, you may be eligible for a property tax exemption. A property tax exemption reduces the net taxable value of your home and up to one acre of your property. Instead of calculating your property tax percentage based on the full value of your home, the Idaho Homeowners Exemption subtracts $100,000 and determines your tax rate based on the resulting amount.
HOW THE HOMEOWNERS EXEMPTION WORKS
Let’s say your home is valued by your county assessor’s office at $200,000. With an approved Homeowners Exemption application, the taxable value of your home would be reduced to $100,000. In other words, your property tax burden could be cut in half with an exemption. It’s easy to apply, and once your application is approved, your exemption will remain permanent unless you move or change your primary residence.
WHO FOR A QUALIFIES HOMEOWNERS EXEMPTION
Idaho residents who own and occupy a home as their primary residence can apply for an Idaho Homeowners Exemption any time after they move in. This is only available on your primary residence so you can only qualify for a Homeowners Exemption on one property.
What are the tax rates?
Because Idaho uses a complicated formula to determine the property tax owed on any individual property, it's not possible to condense it to a simple tax rate, like you could with an income or sales tax. The average last year was
Urban Property Tax 1.141%
Rural Property Tax 0.695%
WHAT OTHER TAX EXEMPTIONS ARE AVAILABLE IN IDAHO?
CIRCUIT BREAKER EXEMPTION: Circuit breaker qualified property owners can reduce their annual property tax bill by up to $1,320 This exemption is available to residents of Idaho who own residential property in Idaho who are over 65, widowed, or former POW and is based on income.
FOREST LAND EXEMPTION: Available to owners of property being held and managed for timber purposes. Bare land must be 5 acres and properties with a home must be 6 acres.
AGRICULTURAL EXEMPTION: Available to owners of land greater that five (5) contiguous acres in size and used primarily for agricultural purposes, other than personal use. Lands five (5) acres or less may qualify with proof of income.
RESIDENTIAL BUSINESS INVENTORY EXEMPTION: Available to owners of new residences built for speculation that have never been occupied. Residential improvements are defined as: Single Family Residences, Townhomes or Condominiums. This exemption only applies to new single-family dwellings which are a component of real property and will remain business inventory until sold.
PROPERTY TAX DEFERRAL: Available to residents of Idaho who qualify for the Property Tax Reduction Exemption and want to defer a portion of their property tax liability. This exemption must be applied for annually and is deferred until the property is transferred or no longer the primary residence.
HARDSHIP EXEMPTION: Available to residents of Idaho who own both real and personal property in Idaho. The exemption is for those who are unable to pay property taxes because of extraordinary circumstances. Reduction in property tax is determined on an individual basis by the County Commissioners.
If you own a home in Idaho and do not have any exemptions, please visit the county assessors office to apply today.
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