Idaho Laws That May Affect Your Property Taxes
Idaho legislators regularly pass laws that change how property is assessed, which exemptions homeowners qualify for, and how school levies are funded — all of which can affect your annual tax bill. Below are two recent laws every Idaho property owner should know about.
HB 354 (2025) — IN EFFECT NOW
Homestead Exemption & Property Assessment Changes
Signed March 28, 2025 · Effective January 1, 2026
What it means for you
This law changed two things that directly affect how much Idaho property owners pay in taxes:
- How your home value is assessed. The rules county assessors follow when determining your property's market value were revised. Your taxable value — and therefore your bill — flows from this number.
- Homestead exemption rules updated. Idaho's homestead exemption reduces the assessed value of your primary residence (up to 50%, subject to a cap), which directly lowers your property tax bill. This law adjusted the provisions governing that exemption.
The bill passed with unanimous support — 69–0 in the House and 34–0 in the Senate — and became effective January 1, 2026, meaning it is already shaping property tax calculations for this year.
HB 521 (2024) — SCHOOL LEVIES & PROPERTY TAX
$125M School Facilities Fund — Shifting School Costs Off Property Tax
Enacted April 2, 2024
What it means for you
School bond and levy elections are historically one of the biggest drivers of local property tax bills. This law attempts to reduce that pressure by funding school construction and renovation at the state level instead:
- $125 million per year in state sales tax revenue dedicated to a new School Modernization Facilities Fund — money that previously would have had to come from local property tax levies.
- Income tax cut from 5.8% to 5.695% as part of the same package.
The bill passed 61–6 in the House and 23–11 in the Senate. It had broader support from Republicans and some Democratic crossover votes.
BROWSE ALL PROPERTY TAX BILLS
These are two of the most significant recent laws, but Idaho legislators consider property tax-related bills every session. Use Tally Idaho to search the full record — filter by keyword, year, or sponsor.
Bill data is sourced from LegiScan and the Idaho Legislature's official records under Creative Commons CC BY 4.0. Tally Idaho is a nonpartisan civic project — we present the data as it is, without editorial spin.