What Changes in Your Paycheck in Idaho
Your paycheck in Idaho shows an Idaho state income tax line item that grows progressively through five brackets, starting at 0% for the first $1-$1. However, because the brackets are extremely compressed, virtually all middle and high earners immediately reach the 6% rate on almost all income For a $1 salary, you might see ~ $1-$1 annually (~ $1-$1 per biweekly paycheck) for state tax, reflecting that most income is taxed at 6%. Idaho paychecks only show state and federal tax deductions—no local income tax line items. The progressive brackets are so compressed that Idaho effectively operates like a flat 6% tax state for most taxpayers. Retirees see no state tax on retirement income distributions, making Idaho attractive for those relying on retirement savings.
Example State Tax in Idaho
What you'll pay in Idaho state income tax at different salary levels (single filer, no deductions):
| Gross Salary | State Tax (Year) | Effective Rate |
|---|---|---|
| $50,000 | $2,826 | 5.7% |
| $75,000 | $4,326 | 5.8% |
| $100,000 | $5,826 | 5.8% |
| $150,000 | $8,826 | 5.9% |
Use the calculator above to see your exact take-home pay with your filing status and deductions.
Key Facts That Affect Your Take-Home Pay
- Idaho uses a progressive income tax system with five brackets, starting at 0% for the first $1 of income (single) or $1 (married) and escalating to a top rate of 6% for income above $1 (single) or $1 (married), making Idaho's bracket structure relatively simple with compressed brackets at low income levels.
- Idaho's progressive brackets are extremely compressed, meaning the first four brackets cover only the first $1-$1 of income (depending on filing status), so virtually all middle and high earners immediately reach the top 6% rate. For a $1 earner, ~ $1-$1 of income is taxed at 6%, making the effective rate very close to the flat 6% rate.
- Idaho does not collect income taxes from local governments, so your income tax structure doesn't vary by location. All Idaho residents have the same income tax structure—only the state progressive brackets apply.
Is Idaho Better for You?
Idaho works well for:
Idaho is relatively challenging for most income levels due to the effective flat-like 6% rate, but lower-income earners (under ~ $1 for all filing statuses) benefit from the zero-percent bracket on the first $1-$1 and lower rates on income up to $1-$1. At these very low income levels, effective state tax rates are 0%-2%, which is favorable. Retirees also benefit from exemptions on Social Security and most retirement income, making Idaho attractive for those relying on retirement savings.
Idaho may not be ideal if:
Idaho is challenging for most earners due to the effective flat-like 6% rate on most income. A $1 earner pays an effective rate around 5.9%-6% (~ $1-$1 annually), while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT), and in North Carolina would pay $1 (4.75% flat). Most earners with geographic flexibility would save $1-$1+ annually by moving to lower-tax states. Idaho's 6% effective rate is among the higher rates for most earners compared to other states.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay different rates across brackets in Idaho.' Reality: Idaho's progressive system is so compressed (only five brackets, with the first four covering just $1-$1) that virtually all taxpayers earning above $1-$1 pay the top 6% rate on almost all their income. A $1 earner pays 6% on ~ $1-$1 of their income, making their effective rate around 5.9%-6%—essentially a flat 6% rate for most taxpayers. The 'progressive' label is technically accurate but practically irrelevant for most earners.
Misconception: 'Idaho has low taxes because it's a low-population state.' Reality: Idaho's income tax is effectively a flat 6% for most earners (due to compressed brackets), which is higher than many flat-tax states like Pennsylvania (3.07%), Indiana (3.15%), or North Carolina (4.75%). A $1 earner pays an effective rate around 5.9%-6% (~ $1-$1 annually), while the same earner in a flat-tax state like Pennsylvania would pay $1 (3.07% flat, though PA may have local EIT). Idaho's effective rate is among the higher rates for most earners.
Misconception: 'No local taxes means Idaho is cheaper than other states.' While Idaho avoids local income tax complications, the effective 6% income tax rate combined with sales taxes (6%) and property taxes can create a tax burden. A high earner in Idaho pays 6% on most income, while a high earner in a flat-tax state like Pennsylvania pays 3.07% flat (though PA may have local EIT). Factor in all taxes when comparing Idaho to other states.
One Thing to Know
Idaho's effective 6% rate is higher than many people expect for a 'low-population' state. The compressed brackets mean almost everyone pays the same top rate, making Idaho less tax-friendly than its reputation suggests—especially compared to neighboring states like Washington (no income tax) or Montana (lower effective rates for many earners).
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Idaho tax laws.