Idaho house prices are going up, so the maximum homeowner’s exemption from property taxes for 2016 will rise 5.77 percent to $94,745, a third year of increases after four straight years of decreases. The exemption currently tops out at $89,580.
Idaho allows homeowners to exempt 50 percent of their home’s assessed value from taxes, and the value of up to one acre of land with it, but caps the exemption, with the cap rising or falling each year along with the Idaho House Price Index. Idaho’s homeowner’s exemption began in 1980 with a maximum of $10,000. It remained at that level until 1983, when it was raised to $50,000 by voter initiative. The 2006 Idaho Legislature raised the exemption to $75,000 and tied the amount for future years to the House Price Index.