Retiring In North Idaho: Everything You Need to Know
Retiring in North Idaho: Everything You Need to Know
North Idaho has become an increasingly popular retirement destination, and it’s easy to see why.
With its scenic mountains, lakes, and forests, the region offers a slower pace of life, year-round outdoor activities, and a strong sense of community.
People quickly form social bonds by getting involved in the activities and communities they enjoy, whether that’s biking, skiing, volunteering, or joining local clubs.
The area offers programs and activities designed to help you live an active retirement, but it’s not without its trade-offs. Harsh winters, rising home prices, and limited urban conveniences are important to factor in.
This guide covers everything you need to know to decide if retiring in North Idaho is right for you, including:
- Why people retire in North Idaho
- Best cities in North Idaho for retirees
- Financial and tax considerations
- Healthcare access
- What to be aware of before choosing North Idaho for retirement
Access the Guide here: Retiring In North Idaho Guide
Why Retirees are Choosing North Idaho
As of 2024, more than 17% of the state’s 2 million residents are aged 65 or older.
With beautiful scenery and never a shortage of things to do, North Idaho offers people a unique retirement experience that attracts many retirees every year.
Natural Beauty and Outdoor Living
North Idaho is built around the outdoors.
The region offers year-round access to mountains, lakes, and forests. Outdoor activities like hiking, fishing, skiing, and boating are a core part of daily life here.
Tight-Knit, Welcoming Communities
Retirees often find it easy to build friendships through shared interests.
Whether it’s a hiking club or volunteering, you’ll quickly meet others with similar lifestyles by participating in the activities you enjoy.
Quality of Life
North Idaho offers a slower pace, low crime rates, and a strong sense of local pride.
Many retirees appreciate the small-town charm without feeling isolated or disconnected, offering retirees a peaceful environment.
Small-Town Feel, Big-City Access
Despite its recent population gains, North Idaho retains its rural character and small-town feel, with convenient access to Spokane, Washington, when needed.
Living in North Idaho, there’s an abundance of locally owned shops, restaurants, art galleries, and a thriving arts and culture scene.
But just 30 to 50 miles away in Spokane, you have access to a broader range of shopping, dining, healthcare, cultural events, and air travel via Spokane International Airport.
Retiree-Friendly Services
This area is increasingly geared toward active retirement, with many communities offering senior-focused programs, fitness classes, and local events.
The Idaho Commission on Aging also provides resources to retirees, such as:
- Free tax assistance
- Fall prevention and fitness programs
- Caregiver support through the statewide Caregiver Alliance
Tax Advantages
Idaho doesn’t tax Social Security income and has a relatively low overall tax burden.
That, combined with property tax exemptions for qualifying seniors, makes the state financially attractive for retirees and small business owners alike.
Best Cities to Retire in North Idaho
Coeur d’Alene (Kootenai County)
This popular retirement destination offers lakeside living with easy access to golf courses, skiing, shopping, and dining. It’s also conveniently located near Spokane, WA, providing access to a major international airport and more extensive healthcare options.
- Median home price: ~$500,000
- Range: $400,000 – $1M+
Sandpoint (Bonner County)
Once named the “Most Beautiful Small Town in America” by USA Today and the Rand McNally ‘Best of the Road’ competition, Sandpoint is renowned for its stunning setting on Lake Pend Oreille and the surrounding Selkirk Mountains. This area is a haven for outdoor enthusiasts, offering water sports, hiking, horseback riding, fishing, and skiing. Downtown, you’ll discover a vibrant scene filled with unique shops, restaurants, and art galleries.
- Median home price: ~$500,000
- Range: $400,000 – $1M+
Financial Considerations
While the cost of living in North Idaho is higher than the national average, the state offers several tax savings for seniors.
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
Homeowners aged 65 and older with income below a specified threshold may qualify for a property tax reduction ranging from $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.
Additional tax relief to note:
- There’s a 6% sales tax statewide; groceries and prescriptions are exempt.
- Idaho offers a vehicle trade-in tax credit, reducing your sales tax on new vehicle purchases.
- Additional tax relief is available for veterans, low-income seniors, widows, and those with disabilities.
Healthcare Access
North Idaho has several hospitals, clinics, and specialty centers, especially around larger towns like Coeur d’Alene.
However, rural areas may have more limited healthcare access. Plan accordingly if you have ongoing medical needs or anticipate needing increased medical attention as you age.
Due to the rise in retirees in North Idaho, there are many specialty health centers popping up, though availability can still vary by location and specific healthcare needs.
Potential Downsides to Consider Before Retiring in North Idaho
Harsh Winters
From January to April, North Idaho typically receives heavy snowfall, often several feet.
During these months, you’ll need to regularly plow and shovel your driveway, and significant snow accumulation can limit accessibility. Power outages are also not uncommon.
While winters can be harsh, they offer plenty of opportunities for those who enjoy snow, whether it’s skiing, snowshoeing, or simply relaxing in one of Idaho’s natural hot springs while taking in the scenic winter landscape.
Limited Urban Amenities
Many retirees are drawn to North Idaho for its quieter, more peaceful way of life.
However, depending on where you’re relocating from, you might notice the absence of some big-city conveniences, such as large chain grocery stores, a wide variety of restaurants, or frequent cultural and music events.
While the local lifestyle is more laid-back and rural, you’re not completely shut off by any means. Spokane, WA, is also just a short drive away and offers access to more urban amenities, including shopping, entertainment, and healthcare.
Minimal Public Transportation
In North Idaho, owning a car is essential.
While some bus services are available, public transportation is limited and generally not reliable enough for daily commuting or errands.
Fewer Employment Opportunities
In North Idaho, most people either work remotely or commute to Spokane for employment.
If you’re a retiree looking for part-time work, opportunities are typically found in the tourism and hospitality industries. However, it’s worth noting that higher-paying jobs in the region are limited.
Internet and Cell Service
Internet and cell service in North Idaho can vary greatly depending on your location.
Towns like Coeur d’Alene, Post Falls, and Hayden typically have reliable high-speed internet and strong cell coverage. However, if you move into more rural or mountainous areas, service can become spotty or even nonexistent.
If you’re considering living in a remote or off-the-grid location, you may need to rely on satellite internet or invest in cell signal boosters to stay connected.
Rising Housing Costs
Housing demand in North Idaho has outpaced supply in recent years, driving prices up.
According to experts from the Idaho Housing and Finance Association and local real estate brokerages, home values are expected to continue rising modestly through the end of 2025, barring any major economic shifts.
While buyers may see more options and have slightly more negotiating power than in past years, significant price drops are unlikely.
- Coeur d’Alene
- Median home price: ~$500,000
- Range: $400,000 to $1M+
- Post Falls
- Median home price: ~$450,000
- Range: $350,000 to $800,000
- Sandpoint
- Median home price: ~$400,000
- Range: $300,000 to $900,000
- Hayden
- Median home price: ~$475,000
- Range: $350,000 to $850,000+
Is North Idaho Right for You?
North Idaho offers a slower, nature-filled lifestyle with strong community connections.
It’s ideal if you value scenic surroundings, outdoor recreation, and a strong community bond with a local feel, anywhere you go.
However, just like anywhere, it’s not the right fit for everyone, especially if you want cultural amenities, low housing costs, or expect to need regular medical attention.
North Idaho offers a slower-paced, nature-filled lifestyle with a strong sense of community.
It’s an ideal choice if you value scenic surroundings, outdoor recreation, and a close-knit, small-town feel.
However, like any place, it’s not for everyone, especially if you’re looking for abundant cultural amenities, lower housing costs, or frequent access to medical care.
How Alpha 3 Wealth Management Can Help
With decades of specialized experience helping individuals and families retire comfortably in North Idaho, Alpha 3 Wealth Management partners with you to create a personalized, comprehensive retirement plan, addressing everything from housing and taxes to healthcare and cost of living, to ensure your financial security and peace of mind throughout your retirement.