Idaho Capital Gains Tax: 2026 Rules and Calculator

Short answer: Idaho taxes capital gains as ordinary income at a flat 5.3% of taxable income over $2,500 ($5,000 joint) (Idaho Code 63-3024). On top of that comes federal capital gains tax (0%, 15% or 20% for 2026 under IRS Rev. Proc. 2025-32, and up to 25% on building depreciation) and the 3.8% net investment income tax above $250,000 of income for married couples or $200,000 single (IRC 1411).

Idaho capital gains tax calculator

Enter your sale: rental property, your home, land, a business, stock or collectibles. You get the 2026 tax in Idaho (federal, the 3.8% tax and Idaho tax) and the same sale spread over the years the buyer pays you. It runs in your browser on the same engine as our capital gains tax calculator.

Example loaded. Change any number to run yours.

What you are sellingRental or investment real estateYour home (Section 121 exclusion)LandA business you work inPublicly traded stock or fundsCollectibles (art, coins, gold, cars)

Sale price

Selling costs (commission, title, legal)

Your adjusted basis

What you paid plus improvements, minus depreciation or depletion taken. Inherited: the value at the date of death.

How long you have held itMore than 1 year1 year or less

State you will be taxed inAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyoming

Filing statusMarried filing jointlySingleHead of household

Other income this year (before deductions)

Years the buyer pays you over (1 = all now)

Expected sale date

Idaho taxes capital gains as ordinary income at a flat 5.3% of taxable income over $2,500 ($5,000 joint) (Idaho Code 63-3024). Tick the Idaho box in the calculator for Idaho real estate held 12 months or more and it applies the 60% Idaho deduction to the gain. Source: Idaho Code 63-3024, rates (current text); Idaho Code 63-3022H, capital gains deduction, checked October 13, 2026. Federal: 2026 brackets per IRS Rev. Proc. 2025-32 (0%, 15% and 20% on long-term gain; 20% above $613,700 of taxable income married filing jointly); 25% cap on building depreciation, IRC 1(h)(1)(E); 28% cap on collectibles, IRC 1(h)(4); 3.8% net investment income tax above $250,000 married or $200,000 single, IRC 1411.

Estimated tax on this sale (2026), example in Idaho

$264,744

You keep $923,256 after selling costs and tax. The tax is 28.2% of your gain.

Your gain

• Sale price less selling costs$1,188,000
• Less your basis$250,000
• Your taxable gain$938,000
• Long-term gain at 0%, 15% or 20%$938,000

The tax, line by line

• Federal income tax (incl. $14,266 AMT)$181,286
• Net investment income tax (3.8%)$33,744
• Idaho tax$49,714
• Total tax$264,744
• You keep$923,256

Spreading it: traded stock cannot be sold on the installment method (IRC 453(k)(2)), so the whole gain is taxed in the year you sell.

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These are estimates. Have a qualified tax professional run your real numbers in a 15-minute scope call.

Why now: the closing date and how the buyer pays you are set before closing, and they decide how much Idaho and federal tax this sale costs.

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This is an estimate. Getting it right down to the tee takes your actual tax forms (returns, K-1s, depreciation schedules), a consult and a paid analysis. The first 15-minute scope call is free.

How Idaho taxes capital gains in 2026

Idaho taxes capital gains as ordinary income at a flat 5.3% of taxable income over $2,500 ($5,000 joint) (Idaho Code 63-3024).

• 60% of capital gain net income from qualified Idaho property is deductible (Idaho Code 63-3022H): Idaho real property held at least 12 months, and certain tangible business property and livestock held for set periods.

Selling Idaho property while living elsewhere: Idaho taxes a nonresident on gain from real estate and other property located in Idaho, so selling Idaho property from another state still means a Idaho return.

Worked example (computed October 13, 2026)

A stock sale, which does not qualify for the Idaho property deduction, so the full 5.3% applies. A single filer in Idaho sells publicly traded stock for $1,200,000 with $12,000 of selling costs. Basis is $250,000, and other income is $150,000.

• Taxable gain: $938,000.
• All in one year (2026): $181,286 federal income tax, $33,744 net investment income tax and $49,714 Idaho tax (5.3% of the gain): $264,744 in total, 28.2% of the gain.
• Traded stock cannot be sold on the installment method (IRC 453(k)(2)), so this sale is all in one year.

What the calculator simplifies

Tick the Idaho box in the calculator for Idaho real estate held 12 months or more and it applies the 60% Idaho deduction to the gain. It also leaves out local taxes unless named above, the alternative minimum tax effect of note interest, and equipment recapture on a business sale. Federal tables for later years carry the 2026 tables forward.

Spreading a Idaho sale over several years

On an installment sale the gain is reported as the buyer pays you (IRC 453), so each year's slice can stay in lower federal brackets and under the 3.8% threshold. Building depreciation is reported first (Treas. Reg. 1.453-12), equipment recapture is taxed in the year of sale (IRC 453(i)), and notes over $5,000,000 owe the Section 453A interest charge. More on how it works: what a structured installment sale is.

Sources

• Idaho Code 63-3024, rates (current text)
• Idaho Code 63-3022H, capital gains deduction
• IRS Rev. Proc. 2025-32: 2026 federal brackets.
• IRC 1(h) and IRC 1411: capital gain rates and the 3.8% tax (as in force October 2026).

Frequently asked

What is the capital gains tax rate in Idaho for 2026?

Idaho taxes capital gains as ordinary income at a flat 5.3% of taxable income over $2,500 ($5,000 joint) (Idaho Code 63-3024). Federal capital gains tax and the 3.8% net investment income tax come on top.

How much tax on a $1,200,000 sale in Idaho?

In the example on this page, a single filer selling publicly traded stock for $1,200,000 with a $938,000 taxable gain owes $264,744 in 2026: $181,286 federal, $33,744 net investment income tax and $49,714 Idaho tax.

Do nonresidents pay Idaho tax when they sell property there?

Idaho taxes a nonresident on gain from real estate and other property located in Idaho, so selling Idaho property from another state still means a Idaho return.

Does Idaho have a capital gains deduction or special rule?

60% of capital gain net income from qualified Idaho property is deductible (Idaho Code 63-3022H): Idaho real property held at least 12 months, and certain tangible business property and livestock held for set periods