Local Tax Burdens: How Idaho Compares with Washington

When it comes to local taxes, Idaho and Washington have a lot in common. Both states have a sales tax, a property tax, and an income tax. However, there are some key differences between the two states’ tax structures.

Sales Tax

The sales tax rate in Idaho is 6%, while the sales tax rate in Washington is 6.5%. This means that a purchase of $100 would cost $6 in sales tax in Idaho and $6.50 in sales tax in Washington.

Both states exempt certain items from sales tax, such as groceries and prescription drugs. However, Idaho also exempts clothing and footwear under $100, while Washington does not.

Property Tax

The property tax rate in Idaho is 1.01%, while the property tax rate in Washington is 1.08%. This means that a property valued at $100,000 would have a property tax bill of $1,010 in Idaho and $1,080 in Washington.

Both states have a homestead exemption, which reduces the assessed value of a home for tax purposes. The homestead exemption in Idaho is $100,000, while the homestead exemption in Washington is $10,000.

Income Tax

The income tax rate in Idaho is 5.4%, while the income tax rate in Washington is 5.9%. This means that a person who earns $100,000 would pay $5,400 in income tax in Idaho and $5,900 in income tax in Washington.

Both states have a standard deduction, which reduces the amount of income that is taxed. The standard deduction in Idaho is $4,500, while the standard deduction in Washington is $4,950.

Conclusion

When it comes to local taxes, Idaho and Washington are fairly similar. Both states have a sales tax, a property tax, and an income tax. However, there are some key differences between the two states’ tax structures.

Ultimately, the best way to determine which state has a lower tax burden is to compare your individual tax situation to the tax rates in both states.

Here are some additional resources that you may find helpful:

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