Economy of Idaho

The gross state product for the state of Idaho was $118.8 billion in 2023, and the state's per capita income that year was $59,035.

Idaho is an important agricultural state. It's the top potato-producing state in the United States, and almost one-third of the nation’s potatoes are grown in the Snake River Plain, a belt of low-lying land that extends across southern Idaho. All three varieties of wheat—dark northern spring, hard red, and soft white—are grown in the state.

Important industries in Idaho are food processing, lumber and wood products, machinery, chemical products, paper products, electronics manufacturing, silver and other mining, and tourism. The world's largest factory for barrel cheese, the raw product for processed cheese, is in Gooding, Idaho. It has a capacity of 120,000 metric tons per year of barrel cheese and belongs to the Glanbia group.

History

As Idaho neared statehood, mining and other extractive industries played a significant role in its economy. Although the state's reliance on mining has diminished over time, Idaho remains renowned as "The Gem State" due to its production of seventy-two varieties of precious and semi-precious stones. Idaho is a leading national producer of potatoes, trout, Austrian winter peas, and lentils. The state's primary industries include manufacturing, agriculture, food processing, timber, and mining.

Tourism is another way that Idaho capitalizes on its natural resources. The same tracts of wilderness that attracted Ernest Hemingway to the region in the early 1960s, continue to attract outdoor enthusiasts with camping, hunting, fishing, as well as whitewater kayaking and rafting, and skiing.

The Idaho National Laboratory (INL) is the largest Department of Energy facility in the country by area. The INL is an important part of the eastern Idaho economy.

A variety of industries are important. Outdoor recreation is a prevalent example in Idaho, encompassing a wide range of activities from snowmobiling and downhill and cross-country skiing during the winter months to the development of Lewiston into a retirement destination. Lewiston's reputation as a retirement community is attributed to its mild winters, dry year-round climate, one of the lowest median wind velocities in the region, and access to rivers that offer a number of options for recreation.

Other examples would be ATK Corporation, which operates three ammunition and ammunition components plants in Lewiston. Two are sporting and one is defense contract. The Lewis-Clark valley has an additional independent ammunition components manufacturer and the Chipmunk rifle factory until it was purchased in 2007 by Keystone Sporting Arms and production was moved to Milton, Pennsylvania. Four of the world's six welded aluminum jet boat (for running river rapids) manufacturers are in the Lewiston-Clarkston, WA valley. Wine grapes were grown between Kendrick and Juliaetta in the Idaho Panhandle by the French Rothschilds until Prohibition.

Between 1991 and 2002, Idaho expanded its commercial base to include the science and technology sector which accounted for over 25% of its Gross state product in 2001.

Since the late 1970s, Boise emerged as a center for semiconductor manufacturing. Boise is the home of Micron Technology, the only U.S. manufacturer of dynamic random-access memory (DRAM) chips. Coldwater Creek, a women's clothing retailer was headquartered in Sandpoint.

Agriculture

Taxation

The state personal income tax ranges from 1.6% to 7.8% in eight income brackets. Idahoans may apply for state tax credits for taxes paid to other states, as well as for donations to Idaho state educational entities and some nonprofit youth and rehabilitation facilities.

The state sales tax was introduced at 3% in 1965, easily approved by voters, where it remained until 1983. The sales tax is 6% with a very limited, selective local option up to 6.5%. Sales tax applies to the sale, rental or lease of tangible personal property and some services. Food is taxed, but prescription drugs are not. Hotel, motel, and campground accommodations are taxed at a higher rate (7% to 11%). Some jurisdictions impose local option sales tax.

Gambling

Idaho has a state gambling lottery which contributed $333.5 million in payments to all Idaho public schools and Idaho higher education from 1990 to 2006.