Short-Term Rental Taxes in Idaho: Coeur d'Alene, Sun Valley, and Complete STR Guide
5.8% flat state income tax | Conforms to federal bonus depreciation | 6% state sales tax + local lodging taxes (~8–9% total) | Top markets: Coeur d'Alene (lake/resort), Sun Valley/Ketchum (ski), McCall (lake/ski), Boise | Strong property appreciation market
Idaho has quietly emerged as one of the Pacific Northwest's top STR investment destinations. Coeur d'Alene's stunning alpine lake draws Pacific Northwest and California tourists in enormous numbers. Sun Valley is one of America's premiere ski and outdoor recreation communities — birthplace of destination skiing in the U.S. McCall offers lakefront and ski access in one of Idaho's most scenic settings. Boise is one of the fastest-growing metro areas in the country. Idaho's tax structure is clean and investor-friendly.
Idaho State Income Tax
Idaho recently simplified its income tax to a flat 5.8% rate. This applies uniformly to all taxable income including net rental income. The flat structure is clean for tax planning purposes — no bracket management needed. At 5.8%, Idaho's rate is virtually identical to Montana (5.9%) and comparable to Utah (4.65%). The full bonus depreciation conformity means cost segregation deductions are fully recognized at the state level.
Idaho Lodging Taxes by Market
| County / Market | State Sales Tax | Local Lodging Tax | Approximate Total |
|---|---|---|---|
| Kootenai County (Coeur d'Alene) | 6% | 2–3% | ~8–9% |
| Blaine County (Sun Valley/Ketchum/Hailey) | 6% | 3% | ~9% |
| Valley County (McCall) | 6% | 2% | ~8% |
| Ada County (Boise) | 6% | 2% | ~8% |
| Bonner County (Sandpoint/Lake Pend Oreille) | 6% | 2% | ~8% |
| Teton County (Driggs/Victor — near Jackson Hole) | 6% | 3% | ~9% |
| Custer County (Stanley/Sawtooth area) | 6% | 1% | ~7% |
Coeur d'Alene: The Gem of the Northwest
Coeur d'Alene sits on the southern shore of Lake Coeur d'Alene — a 25-mile-long glacially carved lake surrounded by forested mountains in the Idaho Panhandle. The market draws heavily from Spokane, WA (35 miles west), Seattle (5-hour drive), and increasingly from California transplants who have relocated to North Idaho. The STR market is strong year-round: summer lake recreation (boating, paddleboarding, swimming), fall foliage, Silverwood Theme Park (nearby), and winter snow activities all contribute to demand.
Sun Valley: America's Original Ski Resort
Sun Valley, established in 1936, is America's first destination ski resort. The Blaine County market (Sun Valley, Ketchum, Hailey) features luxury mountain homes, condos, and cabins that command premium rates in ski season ($400–$2,500+/night for quality properties) and strong summer demand driven by hiking, mountain biking, and the Sun Valley Festival of Arts. Property values have appreciated significantly, with many properties now trading in the $1M–$5M+ range.
Cost Segregation in Idaho
Idaho STR properties — particularly in Sun Valley and Coeur d'Alene — have good cost segregation profiles. Ski storage and equipment areas (15-year), outdoor hot tubs and decks, lake-access infrastructure (boat docks, lifts), and luxury furnishings all contribute to short-life asset percentages of 20–28% for well-equipped properties. A $800,000 Sun Valley ski property with $200,000 in bonus-eligible deductions generates $74,000 in federal first-year savings at 37%, plus $11,600 in Idaho state savings at 5.8% — a combined $85,600 first-year benefit.
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Idaho's growing STR markets + full bonus depreciation conformity = strong investment returns. Get your free cost segregation estimate.
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