You might be asking how long you need to reside in the state for it to be deemed that you are a resident if you are moving to Idaho or have just relocated there. A resident is someone who has their primary place of residence in Idaho for the whole tax year, according to the Idaho State Tax Commission. If you are domiciled in Idaho, it means you have a permanent residence there and plan to remain there.
So how do you get up residency in Idaho? The state takes into account a number of things when determining your domicile, including where you live, whether you own it or rent it, where you register to vote, where you get your license or state ID, and where you file your taxes. Even if you have not established a domicile in the state, you are regarded as a resident for tax purposes if you spend more than 183 days in Idaho during the tax year.
No matter where your money was generated, if you live in Idaho, you must pay state income tax on it. The income tax system in Idaho is progressive, so the more you make, the higher your tax rate will be. Currently, the state’s top marginal tax rate, which is 6.925% for joint filers and over $25,000 for single filers, is applied to income over these thresholds.
While working in Idaho, any bonuses you get will be taxed at the same rate as your normal income. For some forms of income, such as retirement income and capital gains from the sale of Idaho real estate, Idaho does provide tax benefits.
There are certain states that don’t have an income tax if you want to completely avoid paying it, including Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. No matter where you live, you will nonetheless be required to pay federal income tax.
Last but not least, you could be asking if you have to pay Idaho state income tax if you work in Idaho but reside in Washington. Yes, you must submit a nonresident tax return to the state of Idaho and pay taxes on the income you derived from employment there.
In conclusion, you must establish a home in the state and stay there for more than 183 days throughout the tax year in order to be deemed an Idaho resident. You must pay state income tax on all of your income, including bonuses, if you live in Idaho. There are a few states without an income tax if you want to avoid paying state income tax, but you still have to pay federal income tax in those states. You must file a nonresident tax return with Idaho and pay taxes on the income you received while working in the state if you are employed in Idaho but reside in a neighboring state.