One of the few states in the US that exempts seniors from paying property taxes is Idaho. Eligible elderly persons who own a home and satisfy certain income and residency requirements may petition for a reduction in their property taxes through the state’s property tax reduction program. As elders age, the program is intended to make it more affordable for them to remain in their homes and neighborhoods.
Seniors must be at least 65 years old, homeowners who live in their homes full-time, and have incomes below a particular level to be eligible for the program. The maximum annual income varies by the county where the senior resides, however it normally falls between $29,000 and $40,000 per year. Additionally, in order to qualify, seniors must have spent at least six months of the previous year in Idaho.
Idaho has a homestead statute that shields a portion of a homeowner’s property from creditors in the case of bankruptcy in addition to the property tax exemption for seniors. In Idaho, the homestead exemption is worth $100,000 for single people and $175,000 for married couples who own a house together. Seniors who are concerned about losing their house owing to unforeseen financial difficulties may find some relief from this.
Compared to its neighbor to the west, Washington, Idaho is typically thought to have a lower cost of living. Particularly, Idaho has much cheaper housing costs. In Idaho, the median home value is $366,000, while the median home value in Washington is $517,000, according to Zillow. In Washington, seniors on fixed incomes might not be able to stretch their money as far as they could in Idaho.
It’s possible that the reason you owe Idaho state taxes is that you did not make enough anticipated tax payments during the year. Like the majority of states, Idaho requires taxpayers who anticipate owing at least $1,000 in state income tax for the year to pay anticipated taxes. You can owe penalties and interest on the amount you underpaid in anticipated taxes if you did not pay them in full. To prevent these fines and to make sure you are not caught off guard when tax season rolls around, it is crucial to stay on top of your tax obligations.
Overall, for seniors seeking for an affordable place to call home, Idaho might be a terrific state to retire to. Idaho has several advantages for retirees, including cheaper housing costs than many other states, a senior property tax exemption, and a homestead act. Before making any choices on where to retire, it’s crucial to carefully assess your particular financial situation and needs.
Idaho does have a county sales tax. Idaho’s sales tax rates range from 6% to 8%, depending on the county.