Idaho vs. Washington Taxes: Which is Higher?

The Pacific Northwest region of the United States is home to the states of Idaho and Washington. The tax systems in both states vary, which may have an effect on locals’ personal finances. In this piece, we’ll contrast Idaho’s and Washington’s tax rates and provide some associated information. What will the 2020 Idaho income tax rate be?

The progressive income tax rate structure in Idaho comprises brackets of 1.125% to 6.925%. The level of income of the taxpayer affects the tax rate. The tax rate, for instance, is 1.125% for a single person making less than $16,500 annually. The tax rate is 6.925% for a single person making more than $161,550 annually. Every year, by April 15th, Idaho residents must file their state income tax returns. Is there a state withholding tax in Idaho?

Idaho does indeed levy a state withholding tax. State income tax must be deducted by employers from employee paychecks. The employee’s income level and the number of exemptions they list on their W-4 form determine the amount of withholding. Employers are required to regularly submit these withheld taxes to the Idaho State Tax Commission.

Because Idaho has a lower cost of living than California, a lot of Californians are relocating there. Idaho has much lower housing, food, and transportation costs than California. Furthermore, young professionals are drawn to Idaho because of its robust job market and flourishing tech sector.

Which State Is More Affordable: Idaho or Montana? Compared to other states in the union, Idaho and Montana both offer affordable housing. Overall though, Montana is a little more expensive than Idaho. In comparison to Montana, Idaho has lower property taxes, income tax rates, and a cost of living index. However, since there is no sales tax in Montana, some purchases may be less expensive there than in Idaho.

In conclusion, Idaho’s income tax rate is somewhat higher than Washington’s. Idaho is still more affordable to live in than many other states, such as California and Montana. People wishing to relocate find Idaho to be an appealing place to live because of its cheaper cost of living and robust job environment.