The Pacific Northwest area of the United States includes the adjacent states of Oregon and Idaho. While Idaho levies a sales tax on the majority of products and services, Oregon is renowned for having no sales tax. The question of whether Oregon citizens must pay sales tax in Idaho then arises.
Yes, Idaho’s sales tax is applicable to purchases made by Oregon residents in Idaho. Both in-person and online purchases fall under this. However, if the transaction was made for personal use and the amount of sales tax paid was greater than $5, Oregon residents may request for a refund of the tax they paid in Idaho.
In recent years, retirees have been flocking to Idaho in greater numbers. The state provides access to outdoor activities including skiing, hiking, and fishing as well as a low cost of living and a temperate climate. The state also boasts a flourishing theater, gallery, and arts and culture sector.
Capital gains are subject to normal income tax in Idaho. Higher incomes in the state are subject to a higher tax rate because of the state’s progressive income tax system. The tax rates for the fiscal year 2021 range from 1.125% to 6.925%. For people who have owned an asset for more than a year, Idaho does provide a capital gains tax credit.
Idaho is a state with comparatively low taxes when compared to the rest of the US. The state’s 6.925% flat income tax rate is lower than the average for the country. Additionally, Idaho has a lower sales tax than many other states at 6%. Where Does Idaho Stand in Terms of Taxes?
Idaho ranks 18th in the US for overall tax burden, per a WalletHub research. This accounts for sales taxes, income taxes, and property taxes. Idaho does not have the lowest state taxes in the union, but it is still regarded as having comparatively cheap taxes when compared to several other states.
In conclusion, residents of Oregon must pay sales tax when making purchases in Idaho, but they are eligible for a refund if their total outlay exceeds $5. Due to its affordable cost of living and accessibility to outdoor activities, Idaho is a well-liked retirement location. Although Idaho taxes capital gains as ordinary income, it does provide a tax credit for long-term investments. Idaho ranks 18th in overall tax burden and is regarded as having comparatively low taxes compared to many other states in the US.
You typically need to reside in Idaho for at least six months out of the year to qualify as a resident. Other elements, such as where you live, where you are registered to vote, and where you got your driver’s license, can be considered, though. It is usually advisable to confirm the exact criteria with the Idaho state government.