One of the few states in the US that charges both citizens and non-residents of the state income tax is Idaho. The state’s property tax, sales tax, and income tax are all collected by the Idaho State Tax Commission. You must pay state income tax on your earnings, including wages, salaries, tips, and other types of remuneration, if you reside or work in Idaho. What Kinds of Income Are Taxable in Idaho?
Regardless of where it was obtained, all income received by Idaho citizens is liable to state income tax. This includes earnings from jobs, business ventures, investments, and other sources. The state of Idaho levies an income tax on all income received by non-residents who work there. On the other hand, money generated outside of Idaho is exempt from state income tax for non-residents.
To avoid paying sales tax in Idaho, many people from Idaho think about purchasing an automobile in Oregon. It might not be as easy as it seems, though. You must pay Idaho’s use tax, which is equal to the state’s sales tax rate, if you buy an automobile in Oregon and transport it to Idaho. In other words, purchasing an automobile from another state won’t allow you to avoid paying sales tax.
Idaho does not charge sales tax on purchases made outside of the state. On the other hand, if you buy something in another state and bring it to Idaho, you must pay Idaho’s use tax on it. Similar to sales tax, use tax is paid by the buyer as opposed to the seller. The purchase price of the item and the state’s use tax rate are used to calculate use tax. Do You Pay Idaho Sales Tax on a House?
Sales tax is not levied in Idaho on real estate transactions, such as the selling of a home. However, depending on the assessed value of the property, you might need to pay property tax on your house. Does Idaho Have an Income Tax and Sales Tax?
Yes, there is a sales tax and an income tax in Idaho. Local governments may tack on an additional tax of up to 3% in addition to the 6% state sales tax. Depending on your salary, the state income tax rate ranges from 1.125% to 6.925%. Idaho’s tax regulations are made to bring in money for the state, which is then used to pay for infrastructure and public services.
In conclusion, both citizens and non-residents of Idaho are obligated to pay state income tax on any income earned within the state. Although Idaho does not charge sales tax on purchases made outside of the state, things brought into the state may be subject to use tax. The use tax in Idaho will still be due if you purchase an automobile in Oregon to avoid paying sales tax in Idaho. Real estate transactions are exempt from sales tax in Idaho, but you could still need to pay property taxes on your house.