Idaho state taxes 2021: Income and sales tax rates

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Many Idaho residents are required to pay income taxes on their annual earnings.

If you are an Idaho resident, it can be beneficial to understand the tax rates in your state. Knowing the tax laws and rates can help you avoid an unexpected tax bill when you file your income tax return in April.

Idaho personal income tax rates: Table

In Idaho, income tax rates range from 1 to 6.5 percent. Personal income tax rates in Idaho are based on your income and filing status.

Idaho personal income tax rates
Tax rate Single Married, filing jointly
1.0% $0-$1,588 $0-$3,176
3.1% $1,589-$4,763 $3,177-$9,526
4.5% $4,764-$6,351 $9,527-$12,702
5.5% $6,352-$7,939 $12,703-$15,878
6.5% $7,940 or more $15,879 or more
Source: Idaho State Tax Commission

One important thing to know about Idaho income taxes is that Social Security income is not taxable. Railroad Retirement benefits are also completely tax-free. If you have civil service or military retirement benefits, you may qualify for a partial income tax exemption.

Who has to file Idaho state taxes?

According to the Idaho State Tax Commission, every legal resident of Idaho must file income taxes. If you are a part-year resident who has earned income from an Iowa-based employer or has earned income as an Idaho resident, you must pay taxes in the state. There is also an income tax requirement for non-residents who earn income from Idaho businesses.

In addition to resident requirements, there are also requirements around the amount of money you make in Idaho as a full-time or part-time resident. The income tax brackets for Idaho also depend on your age and filing status. You can visit the Idaho State Tax Commissioners’ website to access the tax bracket information.

Idaho sales tax rate: Table

Idaho businesses charge sales tax on most purchases. The sales tax rate in the state is 6 percent, which ranks Idaho as 17th on the list of 50 states with the highest sales tax.

Idaho sales tax rate
Sales tax rate National rank
6% 17
Source: Tax Foundation

Other things to know about Idaho state taxes

If you owe taxes in Idaho, the state makes it easy to file your tax return online. You can find a list of electronic filing services on the State Tax Commissioner’s website. Some of these services are free depending on your income.

The Idaho State Tax Commissioner’s website has a number of helpful resources if you need help filing your income taxes or have questions about how much you owe. You can find common forms, pay your tax bill and track your refund online. The website also lists the department’s contact information if you prefer to make an in-person appointment.

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