Idaho continues its 'historic' tax cuts. Here's what residents can expect

Sarah Cutler, The Idaho Statesman on Mar 25, 2025

By clicking submit, I authorize Arcamax and its affiliates to: (1) use, sell, and share my information for marketing purposes, including cross-context behavioral advertising, as described in our Privacy Policy , (2) add to information that I provide with other information like interests inferred from web page views, or data lawfully obtained from data brokers, such as past purchase or location data, or publicly available data, (3) contact me or enable others to contact me by email or other means with offers for different types of goods and services, and (4) retain my information while I am engaging with marketing messages that I receive and for a reasonable amount of time thereafter. I understand I can opt out at any time through an email that I receive, or by clicking here

Idaho residents can expect to see more property tax relief after Gov. Brad Little signs a bill into law that would cut $100 million in taxes a year.

Little on Tuesday in a news release said he plans to sign House Bill 304, which would direct $50 million each year toward a fund that would distribute the property tax savings to residents for their primary residence. Each property owner’s relief is based on a formula that incorporates the value of their home, the Idaho Statesman previously reported.

The average Idaho home’s taxable value after the state’s homestead exemption is about $400,000, and the average homeowner pays about $3,000 annually in property tax, Sen. Scott Grow, R-Eagle, who cosponsored the bill, told the Statesman. That homeowner is expected to save about $400 annually on property tax starting this fall because of the law, Grow said.

The bill also would divert $50 million from other state tax revenues and use them to maintain and improve public school facilities, aiming to provide an alternative to property tax levies that typically fund these repairs and updates.

Gov. Brad Little urged caution on tax cuts

Little’s decision to sign the bill stood in contrast to his recent comments about the need to be conservative on tax cuts. In February, he expressed trepidation about the Legislature’s efforts this session to slash taxes and drain the state’s general fund. He said that he’d prefer the state keep its coffers full — especially amid the uncertainty of what President Donald Trump’s cuts to federal programs could mean for Idaho.

Of the state’s $13.8 billion budget, nearly 40% is composed of federal funds, Joan Varsek, a spokesperson for Little, told the Statesman.

“We need to be light on our feet” in the transition from Democratic President Joe Biden to Trump, Little told reporters at a news conference. “I think we’ve got to be careful.”

Idaho lawmakers have appeared largely unfazed by his warning, with both the House and Senate passing the bill unanimously. Even Sen. Melissa Wintrow, D-Boise, who said on the Senate floor that she was “afraid we’re bankrupting our state,” said, “I am going to vote for this because I do think it’s what the constituents want.”

The tax cuts that the Legislature is pushing through this session, including the property tax relief bill, could reduce the state’s general fund by about $450 million. In his January State of the State address, Little called for a reduction of the fund by $100 million — less than a quarter of the Legislature’s amount.

“If I would have thought we could do $450 (million), I would have proposed $450 (million),” Little told reporters in February.

Idaho residents’ property taxes have seen steep increases amid the area’s rapid population growth in recent years, especially in the Treasure Valley, the Statesman previously reported. In 2022, property values in Ada County jumped by a record 30% before dipping in more recent years, keeping property taxes top of mind for residents.

This legislative session, Little also signed into law a $253 million income tax cut, the largest in the state’s history, and a $50 million expansion of the state’s grocery tax credit.

“As we continue to deliver historic tax relief, we must ensure our budget balances as the Idaho Constitution requires,” Little said in a previous statement.

Little planned to sign the property tax relief bill Wednesday morning, according to the news release.

_____