Best Cities for Small Business in Idaho
Idaho ranks #2 of 50 for small business, with a small business score of 80.2. Eagle is its best city for small business at 68.8.
- Idaho, all states
- #2 of 50
- Population
- 32,855
Why Idaho Works for Small Business
Idaho ranks #2 out of 50 for small business owners and entrepreneurs — one of the most business-friendly environments in the country. The state's fiscal health score of 71/100 signals a well-managed state government with sustainable finances — the kind of stability that benefits long-term business planning.
Tax policy directly impacts the bottom line. Idaho's overall tax burden is 7.54% of income, with a 5.7% income tax rate that applies to both personal and pass-through business income. The 6.03% combined sales tax rate is moderate and worth factoring into pricing strategy. The economic environment (score: 51/100) with 3.7% unemployment shows healthy labor availability.
Population growth of 1.44% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 55/100) produces a reasonably well-prepared workforce. A typical home value of $478,744 is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1Eagle | B+ | 68.8 | 62.6 | 83 | 77 | 79 | 32,855 |
| 2Star | B+ | 67.9 | 60.5 | 72 | 55 | 100 | 14,745 |
| 3Kuna | B+ | 65.5 | 59.9 | 70 | 65 | 93 | 27,158 |
| 4Meridian | A | 65.0 | 64.7 | 73 | 70 | 69 | 130,138 |
| 5Boise City | A | 58.6 | 64.4 | 57 | 61 | 47 | 237,242 |
| 6Caldwell | B | 58.4 | 57.3 | 50 | 51 | 88 | 66,516 |
| 7Idaho Falls | B+ | 58.0 | 59.0 | 51 | 56 | 76 | 67,725 |
| 8Nampa | B | 56.1 | 58.6 | 51 | 55 | 67 | 110,319 |
| 9Hayden | B | 55.2 | 55.9 | 62 | 42 | 64 | 16,338 |
| 10Coeur d'Alene | B+ | 55.0 | 59.9 | 55 | 50 | 55 | 56,447 |
| 11Post Falls | B | 54.8 | 58.0 | 56 | 51 | 58 | 43,391 |
| 12Chubbuck | B | 54.0 | 56.3 | 65 | 42 | 49 | 16,126 |
| 13Lewiston | B | 53.1 | 58.3 | 49 | 54 | 43 | 34,651 |
| 14Twin Falls | B | 51.3 | 56.3 | 46 | 50 | 55 | 54,164 |
| 15Ammon | C | 49.2 | 52.2 | 68 | 45 | 29 | 19,064 |
| 16Pocatello | C+ | 48.4 | 55.1 | 39 | 46 | 44 | 57,635 |
| 17Moscow | B+ | 47.2 | 60.3 | 19 | 51 | 48 | 26,286 |
| 18Jerome | C | 44.6 | 50.4 | 49 | 28 | 43 | 12,930 |
| 19Mountain Home | D | 41.9 | 48.0 | 47 | 25 | 29 | 16,493 |
| 20Rexburg | C+ | 40.9 | 54.9 | 7 | 43 | 42 | 40,543 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Idaho for Other Lifestyles
Frequently Asked Questions
Is Idaho a good state for small business?
Idaho ranks #2 out of 50 for small business with a persona-weighted score of 80.2/100. Its strongest relevant category is Safety (87/100) and its weakest is Livability (40/100).
What is the best city for small business in Idaho?
Eagle ranks #1 in Idaho for small business with a score of 68.8/100, followed by Star and Kuna.
What factors are most important for small business in Idaho?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.