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Idaho State Taxes

Idaho-Income-Taxes

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. However in 2021, the state legislature has lowered the highest income tax rate, down from 6.925% to 6.50%

State Business Taxes in Idaho

The state of Idaho has a flat Corporate income tax of 6.50% on C Corporations. Other flow-thru entities, such as S-Corporations, LLCs and Partnerships are not subject to the corporate income tax, but they are subject to the individual income tax rate.

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 and Property Taxes in Idaho

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%. If you homestead your primary residence in Idaho, they will reduce your home value assessment by $100,000, thereby paying less in property taxes.

Payroll 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

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