Understanding the Idaho Transfer Tax: A Quick Guide
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Joseph Gordon EditorJoseph Gordon is an Editor with HomeLight. He has several years of experience reporting on the commercial real estate and insurance industries.
Selling your home in Idaho? You might have some questions about the Idaho transfer tax. Does Idaho even have a transfer tax?
Transfer taxes are fees the state, county, or city imposes when property ownership is transferred from one party to another. These taxes can vary widely depending on where you’re located and the specifics of the property sale.
In this guide, we’ll examine how transfer taxes work in Idaho, giving you insight into what to expect.
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What are transfer taxes?
Real estate transfer taxes are assessed by state or local authorities when property ownership changes hands. According to the Federal Trade Commission, this tax is triggered once the title—or the legal rights to a property—is transferred from one person to another.
The actual tax rate and the responsibility for paying this tax can vary significantly depending on the property’s location, reflecting different state, county, or city regulations.
Who pays for transfer taxes?
Unlike many other states, Idaho does not impose a state transfer tax on real estate transactions, which can alleviate some of the financial burden on sellers.
However, there are still property taxes to consider. Property taxes in Idaho are levied at an effective tax rate of 0.47%, ranking it 44th in the country—one of the lowest effective rates, just above states like Nevada and Arizona.
Other transfer fees
Even though Idaho does not have a transfer tax, there are other possible fees to consider, such as from a homeowner’s association or another local neighborhood organization. Again, as these can vary heavily based on location, it’s important to consult a professional.
Closing costs in the state average about 10%, but they can vary depending on the transaction, the type of home being sold, and other factors.
If you’re selling your home for sale by owner, consulting a professional might help you understand some of the finer points of the process and give you a better idea of what to expect.
Are transfer taxes deductible?
Though Idaho does not have transfer taxes, it’s important to note that transfer taxes are generally not deductible from your income taxes. However, you may be able to reduce your overall capital gains taxes, which are the taxes on the profit made from selling your property.
Capital gains are computed on the difference between the sale price and the property’s purchase price, adjusted for various factors, including selling costs. These are levied at the federal level, so you will still be responsible for these costs despite not paying transfer taxes.
Learn more about selling a home in Idaho
If you’re selling a house in Idaho, here are some helpful guides from HomeLight’s Seller Resource Center:
How to Sell a House By Owner in Idaho
Hard Money Lenders Idaho: What You Need to Know
6 Top Flat Fee MLS Companies in Idaho
Bridge Loans Idaho: How to Unlock Home Equity to Buy Before You Sell
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