June 26th 2025
By Ari Parker
Thinking about retiring in Idaho? Discover the best places to live, cost of living, tax benefits, healthcare options, and everything else you need to know in this complete retirement guide.
Idaho’s numerous outdoor opportunities, state parks, and slower pace of living appeal to many retirees. The state also has low housing costs and crime rates, making it an inviting retirement destination.
In this article, we’ll explore the pros and cons of retiring in Idaho, as well as provide more details about the best cities in Idaho for retirement.
Idaho experiences all four seasons. While winters can be harsh, if you enjoy the snow, you might enjoy the opportunity to ski or snowshoe. Or, you might enjoy relaxing in one of Idaho’s hot springs while enjoying the winter scenery.
Idaho has a gorgeous, rugged landscape. Mountains and rivers cover the state, which has some of the largest unspoiled natural areas in the United States. As you might expect, outdoor activities are popular in Idaho. Hiking, biking, whitewater rafting, and fishing are staples of the Idaho lifestyle. You can also enjoy a performance at The Opera House or learn more about the background of Idaho at local museums.
Retirees enjoy the welcoming, friendly attitudes of Idahoans. Live music also thrives in Idaho. Festivals like Treefort Music Festival and The Festival at Sandpoint attract hundreds of musical acts.
Now that we’ve given you a snapshot of what life in Idaho looks like, let’s take a deeper look at some specific pros and cons.
Idaho has a gorgeous outdoor landscape. If you enjoy spending time outdoors, there’s plenty to do, from taking nature walks to birdwatching and fishing.
The cost of utilities is lower in Idaho than in other states. More affordable housing and groceries can also leave you with more disposable income.
Idahoans tend to be friendly and neighborly. There’s also a low crime rate in the state.
Winters in Idaho can be harsh. If you don’t enjoy the cold weather and snow, this can be unpleasant.
It can be difficult to access healthcare, especially for those living in the rural communities of Idaho.
There’s a higher risk of wildfires in the summer in Idaho. This might cause you to need to evacuate or expose you to low air quality.
While the cost of living in Idaho is higher than the national average, the state offers several tax savings for seniors. Let’s explore more about how retirement taxes work in Idaho.
No Social Security tax: Idaho does not charge taxes on Social Security. If Social Security benefits are a key part of your income, this can be helpful.
Certain pensions can be deducted: Idaho allows certain types of pensions to be deducted from your retirement income if you are aged 65 or older. However, this is typically not the full amount of the pension.
Property tax reduction program: This is called the Circuit Breaker. It gives homeowners over 65, who earn below a certain amount, a break on their property taxes. This reduction can be between $250 to $1,500.
No estate/inheritance taxes: Idaho does not have an estate tax, which means you won’t need to pay state taxes when passing assets on. However, you may still need to pay federal estate taxes.
Low property tax rates: Idaho has a low effective property tax rate. The average effective property tax rate on real estate in Idaho is 0.47%, and the median annual property tax payment is $1,872.
Generally, it’s less expensive to live in Idaho than in some other parts of the country, like California. The cost of living in Idaho is 11% higher than the national average. The cost of living can be higher in the larger cities, like Boise and Twin Falls. However, utilities tend to be less expensive in Idaho than the national average.
Idaho’s housing costs are 10% lower than the national average, and rent is 16% lower than the national average. Housing prices average at around $459,000, while rent averages around $1,300 a month.
According to the U.S. News & World Report’s Affordability Rankings, Idaho is ranked 21st in affordability and 16th in cost of living. As previously mentioned, the cost of living is higher in larger cities, and things are more affordable in rural areas.
Idaho offers a lower cost of living compared to Washington. But, taxes can be higher in Idaho in comparison to Washington and Wyoming. Both Washington and Idaho have good access to healthcare, especially near major cities. In Wyoming, it may be more difficult to access healthcare providers.
Idaho and Washington tend to have similar climates, but winters in Wyoming can be harsh. Retirees who prefer a slower lifestyle will love Idaho’s small-town charm. However, those seeking a city environment prefer Washington.
Idaho has great options for retirement, no matter what your budget might be. For those with a higher budget, consider:
Boise: A city that has many amenities. You can find healthcare services and enjoy cultural activities, such as museums and theaters.
Coeur d’Alene: This city is near Lake Coeur d’Alene. It features upscale lakefront homes, local shops, fine dining, and top-notch golf courses.
Sun Valley: A ski resort town that is popular with celebrities. Offers access to concerts, film festivals, and high-end dining.
Individuals looking for more budget-friendly options can consider:
Meridian: Close to Boise, Meridian offers city perks with a small-town vibe and lower costs. Street fairs and community events are common in Meridian.
Burley: A city in Southern Idaho with a close-knit community. The Snake River runs through Burley, providing opportunities for fishing and kayaking.
Blackfoot: “The Potato Capital of the World”, Blackfoot has a gorgeous landscape. Walking trails and parks offer plenty of opportunities for relaxation.
Idaho is ranked as the 33rd least healthy state in America’s Health Rankings Senior Report. A shortage of healthcare providers can make it difficult to access care. This is especially true for those living in the more rural areas of Idaho.
There are about 393,000 Medicare beneficiaries in Idaho, which makes up 17% of the state’s population. 49% of these individuals have enrolled in Idaho Medicare Advantage plans, while the remainder is on Original Medicare.The Complete Guide to Retiring in Idaho
If you want to learn more about Medicare in Idaho, you can speak with a Chapter Medicare Advisor. Call us at (855) 900-2427 or schedule a free consultation.
Idaho offers a friendly, slower-paced lifestyle and gorgeous scenery. Whether you enjoy the outdoors or cultural activities, there’s plenty to do in Idaho.
