Gross state product for 2004 was US$43.6 billion. The per capita income for 2004 was US$26,881. Idaho is an important agricultural state, producing nearly one third of the potatoes grown in the United States.

Important industries in Idaho are food processing, lumber and wood products, machinery, chemical products, paper products, electronics manufacturing, silver and other mining, and tourism. The world's largest factory for barrel cheese, the raw product for processed cheese is located in Gooding, Idaho. It has a capacity of 120,000 metric tons per year of barrel cheese and belongs to the Glanbia group. The Idaho National Laboratory (INL), a government lab for nuclear energy research, is also an important part of the eastern Idaho economy. Idaho also is home to three facilities of Anheuser-Busch which provide a large part of the malt for breweries located across the nation.

Today, the largest industry in Idaho is the science and technology sector. It accounts for over 25% of the State's total revenue and 70%+ of the State's exports (in dollars). Idaho's industrial economy is growing, with high-tech products leading the way. Since the late 1970s, Boise has emerged as a center for semiconductor manufacturing. Boise is the home of Micron Technology Inc., the only U.S. manufacturer of dynamic random access memory (DRAM) chips. Hewlett-Packard has operated a large plant in Boise, in southwestern Idaho, since the 1970s, which is devoted primarily to LaserJet printers production. Dell, Inc. operates a major customer support call center in Twin Falls. AMI Semiconductor, whose worldwide headquarter locates in Pocatello, is a widely recognized innovator in state-of-the-art integrated mixed-signal semiconductor products, mixed-signal foundry services and structured digital products. Coldwater Creek, a women's clothing retailer, is headquartered in Sandpoint.

The state personal income tax ranges from 1.6% to 7.8% in eight income brackets. Idahoans may apply for state tax credits for taxes paid to other states, as well as for donations to Idaho state educational entities and some nonprofit youth and rehabilitation facilities.

The state sales tax is 6%. Sales tax applies to the sale, rental or lease of tangible personal property and some services. Food is taxed, but prescription drugs are not. Hotel, motel, and campground accommodations are taxed at a higher rate (7% to 11%). Some jurisdictions impose local option sales tax.

Idaho has a state gambling lottery which contributed $333.5 million in payments to all Idaho public schools and Idaho higher education from 1990 - 2006.