The Honest Guide to 55+ Living
in Boise & the Treasure Valley

Idaho’s \$95,870 retirement deduction — the tax advantage nobody talks aboutIdaho allows married filers 65+ to deduct up to \$95,870 in qualified retirement income (pensions, IRA, 401k distributions) from state taxable income. Social Security is fully exempt. Idaho’s flat income tax rate is 5.8%, but with the deduction, most retired couples pay zero Idaho income tax. This benefit is worth \$3,000–\$5,500/year for typical retirees — and it makes the Boise market significantly more tax-efficient than its property tax rates alone suggest.

Homestead exemption — apply in year oneIdaho’s homestead exemption reduces taxable value by 50%, capped at a \$125,000 reduction. Ada County effective rate after exemption: ~0.76%. Canyon County: ~0.68%. File with your county assessor after closing — it renews automatically.