Idaho residents could receive up to $250 per person through the state’s grocery tax credit or refund programme, as lawmakers increase the amount of relief available to households facing higher food costs. A total of around $254 million is being distributed, compared with $49 million last year.
Grocery Tax Credit Has Been Increased
House Bill 231, passed last year, raised the annual grocery tax credit or refund to $155 per person from the 2026 fiscal year. Residents who submit itemised grocery receipts can qualify for a higher refund or credit of up to $250 per person.
The programme is designed to return part of the sales tax paid on qualifying grocery purchases to Idaho residents.
Idaho Residents Face A 6% Grocery Sales Tax
Idaho currently charges a 6% sales tax on groceries. The state is one of only a small number in the US that still applies a sales tax to grocery purchases.
Only eight states currently tax groceries, according to the information provided. Of those, three apply their standard sales tax rate to grocery purchases. Idaho has considered removing the grocery tax altogether, but previous attempts have not become law.
Governor Highlights Rising Food Costs
Governor Brad Little has backed the expanded tax relief as food prices continue to put pressure on household budgets. “We know high grocery prices are squeezing family budgets and hitting our seniors hard,” Little said in a statement.
He added that the state was focused on returning more tax relief to residents and making Idaho more affordable. The record amount being distributed this year reflects the expanded credit approved by lawmakers.
How Much Could Residents Receive?
The standard annual grocery tax credit is $155 per individual. Residents who provide itemised receipts can qualify for up to $250 per person, subject to the programme’s requirements.
The exact amount a resident receives therefore depends on their eligibility and the documentation they submit. With $254 million being distributed statewide, the programme represents a substantial increase from the $49 million distributed the previous year.
Idaho Has Considered Ending The Grocery Tax
The expanded credit comes as Idaho continues to debate whether grocery purchases should be subject to sales tax at all. Previous proposals to eliminate the grocery tax have not been enacted.
For now, the state continues to collect its 6% sales tax, while the grocery tax credit and refund programme gives eligible residents a way to recover part of the amount they have paid.
Residents should check the latest state requirements to determine whether they qualify for the standard credit or the higher refund available with itemised grocery receipts.
