Idaho Economy: Agriculture, Tech, and Population Growth

Idaho is a smaller state economy, usually ranked in the lower-middle of U.S. states by GDP — the dollar value of everything a place makes and sells in a year. The Idaho economy has been one of the fastest-growing in the country for years, with agriculture, technology, manufacturing, and tourism all expanding alongside one of the highest population growth rates in the U.S.

This is a plain-English tour. For the national picture, see The State of the U.S. Economy and the Economy hub.

How big is the Idaho economy?

For example, recent state GDP for Idaho has run around $115 billion, according to the Bureau of Economic Analysis. Population is roughly 2.0 million and growing fast, per the U.S. Census Bureau. Boise, Idaho Falls, Coeur d'Alene, and the Twin Falls magic valley anchor the main regional economies.

The biggest industries

Idaho's industry mix is more diverse than most outsiders realize. The main pillars are:

• Agriculture and food processing — Idaho leads the country in potatoes and is a top-five state for dairy, barley, sugar beets, and trout. J.R. Simplot, Lamb Weston, and Chobani all run major plants in the state.
• Technology and electronics — Micron Technology, one of the largest U.S. memory chip makers, is headquartered in Boise; HP has a major site in the area as well.
• Manufacturing — wood products, metals, machinery, and transportation equipment are all important; Idaho remains a top lumber-producing state.
• Healthcare — large hospital systems in Boise and Idaho Falls are major employers in a fast-growing state.
• Tourism and outdoor recreation — Sun Valley, Coeur d'Alene, McCall, and a long list of national forests and rivers drive a significant tourism industry.
• Government and federal labs — Idaho National Laboratory near Idaho Falls is one of the country's largest nuclear research labs.

Jobs and wages

Idaho labor data is published by the Idaho Department of Labor, with national-level numbers from the Bureau of Labor Statistics. For example, the Idaho unemployment rate has consistently been among the lowest in the country, often well below the national average, with the Boise metro especially tight.

The Idaho minimum wage is tied to the federal floor of $7.25 per hour. Many large employers in Boise tech, manufacturing, and healthcare pay well above that on their own.

Taxes in Idaho

Idaho has a flat state income tax that the legislature has lowered in recent years.

The state sales tax rate is 6%, with limited local add-ons (mostly in resort towns). State tax forms and rules live at the Idaho State Tax Commission. You can read more about how sales tax works in our glossary.

Cost of living

Cost of living in Idaho varies widely. Boise and Coeur d'Alene have seen housing costs rise sharply with the population boom and now run close to or above the national average. Most of the rest of the state remains affordable. The federal government tracks region-specific Consumer Price Index data through the BLS West region, and HUD publishes Fair Market Rents for every county at HUD User.

The Boise tech cluster

Boise has one of the most underrated tech ecosystems in the country. Micron is the anchor, with thousands of engineers and researchers at its headquarters and fabs. HP, Clearwater Analytics, and a growing base of remote-friendly tech workers make the metro one of the fastest-growing tech labor markets per capita.

Population growth and housing

Idaho was for several years the fastest-growing state in the country by percentage. Inbound migration, much of it from California, Washington, and Oregon, has reshaped the Boise and Coeur d'Alene metros and pushed up housing costs significantly. The state has been working to keep infrastructure, schools, and water capacity ahead of growth.

Agriculture and food processing

The Snake River Plain across southern Idaho is one of the most productive irrigated agricultural regions in the country. Potatoes, dairy, barley, sugar beets, and onions all anchor a deep food-processing footprint, with plants in cities like Twin Falls, Burley, and Pocatello. Chobani's Twin Falls yogurt plant is one of the largest in the world. Lamb Weston operates major frozen-potato plants across the southern part of the state, and J.R. Simplot — founded and headquartered in Boise — remains one of the largest privately held food and agribusiness companies in the country.

Idaho National Laboratory

Idaho National Laboratory near Idaho Falls is one of the U.S. Department of Energy's largest research sites, with a long history in nuclear reactor research and a growing focus on advanced reactor designs, grid security, and materials science. It is one of the largest single employers in eastern Idaho and supports a deep base of contractors and engineering firms.

How does the Idaho economy fit into the national picture?

Idaho is one of the few state economies where agriculture, tech, and tourism are all simultaneously growing. Population growth has been a major driver, and the state's relatively young workforce and low unemployment rate are unusual for the U.S. as a whole.

A note on the numbers

Numbers in this article change every quarter — always check the latest from BEA, BLS, and the Idaho State Tax Commission for the most current data.