STATE RANKING #34

tax facts: 

-The State of Idaho has both Corporate income tax and personal income tax rates with maximum rates of 6.925%. They also have a permanent building tax fund of $10 for each business entity or member. Read more below.

6.93%

State Income Tax

State
Income
Tax

6.93%

Cost of Setting Up A Business

state
business
tax

LOW

Property
Taxes

6.03%

Sales
Tax (average)

State Income Taxes in Idaho

The state of Idaho does have an individual income tax. Like most states with income tax, it is calculated on a marginal scale with multiple brackets (7). The tax rates range from between 1.125% to 6.925% for 2020. The highest bracket starts at $11,760.

State Business Taxes in Idaho

The state of Idaho has a flat Corporate income tax of 6.925% on C Corporations. Other flow-thru entities, such as S-Corporations, LLCs and Partnerships are not subject to the corporate income tax.

Permanent Building Fund in Idaho

Additionally, the state of Idaho imposes a small tax on all business & fiduciary entities. The tax is as follow:

  • $10 for each C Corporation
  • $10 for each S Corporation shareholder
  • $10 for each LLC member
  • $10 for each Trust or Fiduciary beneficiary

Sales Taxes in Idaho

Like most states, Idaho has both a state and local sales tax. Its state sales tax is 6.00% and it’s local sales tax has an average rate of 0.03% (which puts the state average 6.03%).

Property Taxes in Idaho

The average property tax rate for residential property in the state of Idaho is 0.75%, which is well below the national average of 1.05%.

Unemployment taxes in Idaho

Unemployment taxes usually consist of three factors. They are: the wage base, the range of UI rates, number of schedules. Below is an outline of the three:

  • Wage Base – Idaho has a wage base of $40,000 (high wage base)
  • UI Rates – range from 0.25% to 5.40%
  • Schedules – Idaho has multiple rate schedules regarding UI

Idaho Business Entities - LLCs

Idaho is inexpensive in regards to opening an LLC. Here are some important facts:

  • Idaho has no annual LLC fee. Yay!
  • When you register with the state, you pay a one time fee of $100
  • Secretary of State of Idaho website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #33

State #35