Property Tax Reduction Program

The Property Tax Reduction program (formally known as the Circuit Breaker) reduces property taxes for qualified applicants. The amount of reduction is based on the total household income minus total qualifying medical expenses for the previous calendar year. If you qualify, the property taxes on your primary home and up to one acre of land may be reduced by as much as $1,500. See income brackets. Solid waste, irrigation or other fees cannot be reduced by the Property Tax Reduction benefits per Idaho code 63-701.

Applications accepted only between January 1st and April 18th.

How to Qualify

You may qualify for a property tax reduction if you meet the following requirements.

  • Qualify for and have a Homeowners Exemption - (You may qualify if you live in a care facility or nursing home. For more information contact your county assessor at kcassr@kcgov.us) and
  • Your total household income for the prior year was $33,870 or less after deductions and
  • You are in one or more of the following categories as of January 1st:
    • Age 65 or older
    • Widow(er) of any age
    • Blind
    • Fatherless or motherless child under 18 years of age
    • Former prisoner/hostage of war
    • Veteran with at least 10% service connected disability, or receiving VA pension for a nonservice-connected disability.
    • Disabled as recognized by the Social Security Administration, Railroad Retirement Board, or Federal Civil Service. You may still qualify if your disability application is being processed or appealed.

Income Guidelines

2021 NOTICE: Any Federal Stimulus payments received in 2021 are not considered income for Property Tax Reduction.

When completing the application, it is required to report all household income received in the prior year by yourself and your spouse (even if you are legally separated). Types of income that must be included:

  • Capital gains
  • Child support/alimony
  • Department of Health and Welfare payments (including Aid for Dependent Children and housing assistance)
  • Disability income from any source
  • Dividends
  • Gambling winnings
  • Insurance payments
  • Interest (including taxable and nontaxable)
  • Loss of earnings
  • Military retirement benefits
  • Pensions, IRAs and annuities (except qualified rollovers)
  • Railroad Retirement
  • Social security/SSI (Supplemental Security Income)
  • Strike benefits
  • Unemployment/workers compensation
  • VA pensions and compensation (excluding VA Pension received for 40% and higher service connected disability, proof of rating)
  • Wages
  • Business, farm and rental net income

Types of expenditures that may be deducted your income: (Charitable Donations are not deductible for this program)

  • Medical/dental and related expenses not reimbursed by Medicare or other insurance (including vision, dental, prescriptions drugs, and mileage for trips relating to your health care)
  • Medical insurance premiums (home and auto insurance are not deductible for this program)
  • Payment or prepayment of funeral expenses for you and your spouse only
  • Business and farm losses (you must submit a copy of the appropriate federal schedule)
  • Early withdrawal penalties
  • Alimony paid

Documentation

First time applicants need to present the following documentation to the Deputy Assessor at the time of application.

  • Social Security/Railroad Retirement 1099 forms or
  • Valid Idaho driver’s license, Idaho identification card, Social Security Card, or Birth Certificate
  • If disabled, provide certification of disability from Social Security or other agency (or show proof that your claim is being processed or appealed); If VA disabled provide certification from VA annually.
  • If blind, provide certification from your doctor.

All applicants that file an income tax return need to provide the following:

  • Federal income tax return
  • Documents showing income not reported on your income tax return
  • Proof of deductions:
    • Provide a copy of Federal Schedule A, if you itemized your deductions. If you did not file a Schedule A, please provide the following:
      • Completed Medical Expense form
      • Proof of payment of non-reimbursed medical expenses
      • Proof of all other deductions you are claiming

All applicants that don’t file an income tax return need to provide the following:

  • Social Security/Railroad Retirement and all other 1099 forms you received
  • W-2s
  • Any other documents showing income not already reported
  • A completed medical expense statement and proof of payment of non-reimbursed medical expenses. Statements from your medical providers with totals are preferred. (documentation must show amount actually paid not just amount billed)
  • Proof of all other deductions you are claiming

Summary

The property tax reduction can be applied for only between January 1st and April 15th. To continue receiving this benefit, you must apply and qualify each year. It is not renewed automatically.

First time applicants are required to show proof of status, and U.S. residency when filing. All applicants are required to provide proof of income and deductions. If you are missing some of this information, we will complete as much of the form as possible and have you sign it by the April 15th deadline. Extensions can not be filed on this program even if an extension is filed on your income taxes.

Once the application is accepted and approved at the county level, it is sent to the state for final approval. Questions regarding the status of an application at that point should to be directed to the State Tax Commission. If the application is approved by the state, a reduction will appear on the property tax notice sent in December of the current year. No other notification is given unless the state has questions or needs more documentation.

Please view additional information on the Property Tax Reduction Program.

Share this information with your friends, family, neighbors and clients. For more information contact the Idaho State Tax Commission at 208-334-7736