Overview of Idaho Taxes
Idaho has seven income tax brackets, ranging from 1.6% to 7.4%, and based on income level. The good news is that Idahoans don’t have to worry about local taxes, as there are none in the state.
This calculator reflects the 2018 federal withholding tax changes.
Click here to learn more about how the Trump Tax Plan will affect you.
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- Our Tax Expert
Jennifer Mansfield, CPA Tax
Jennifer Mansfield, CPA, JD/LLM-Tax, is a Certified Public Accountant with more than 30 years of experience providing tax advice. SmartAsset’s tax expert has a degree in Accounting and Business/Management from the University of Wyoming, as well as both a Masters in Tax Laws and a Juris Doctorate from Georgetown University Law Center. Jennifer has mostly worked in public accounting firms, including Ernst & Young and Deloitte. She is passionate about helping provide people and businesses with valuable accounting and tax advice to allow them to prosper financially. Jennifer lives in Arizona and was recently named to the Greater Tucson Leadership Program.
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 Photo credit: ©iStock.com/© Henryk Sadura | Idaho Paycheck Quick Facts
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How Your Idaho Paycheck Works
If you are employed, you’re going to get taxes withheld from each paycheck. Whoever you work for will withhold FICA and federal taxes from your pay. FICA taxes comprise of Medicare and Social Security and are taxed at 1.45% and 6.2% respectively. Your employer then matches these contributions so the total amount is double those percentages. Additionally if you make wages in excess of $200,000, the excess will be taxed an additional 0.9% for Medicare, which employers do not match. Federal tax also goes to the IRS where it is counted toward your annual income taxes.
How much money your employer withholds from your paychecks is dependent on the information you provide on your W-4 form. This form is one you’ll need to fill out whenever you get new job or you have a life change, like having a baby, or simply when you need to make changes to your withholding amount during the year.
In December 2017, President Trump signed a new tax plan into law. The IRS has since released updated tax withholding guidelines and taxpayers should have seen changes to their paychecks, to reflect the new tax plan, starting in February 2018. For the time being, taxpayers do not need to fill out a new W-4. Employers will use the withholdings on your current form.
Several factors affect how much taxes get taken out of your pay. For one, your marital status and whether you indicated on your W-4 that you’re filing separately from your spouse or not, will have an impact on your allowances. If you qualify for certain allowances, such as dependents, then you might end up with a slightly larger paycheck each month. Keep in mind though, if you claim too many allowances and you underpay your taxes all year, you might be looking at a bigger tax bill come April.
Your paycheck size will also be affected by your pay frequency. If you get paid biweekly, your paychecks will be smaller and more frequent than if you get paid once per month.
Idaho Median Household Income
| Year | Median Household Income |
| 2016 | $49,174 |
| 2015 | $47,583 |
| 2014 | $47,861 |
| 2013 | $46,783 |
| 2012 | $45,489 |
| 2011 | $43,341 |
| 2010 | $43,490 |
| 2009 | $44,926 |
| 2008 | $47,576 |
As a single person (or married and filing separately) in the Gem State, you’re going to be taxed 1.6% on the first $1,472 of taxable income. You’re taxed 3.6% on income over $1,472; at 4.1% on income over $2,945; at 5.1% over $4,417; at 6.1% over $5,890; at 7.1% over $7,362 and the highest bracket is a tax of 7.4% on income over $11,043.
If you’re married and filing jointly or head of the household, the tax rates are the same but the income brackets are doubled.
No cities in Idaho levy local income taxes.
How You Can Affect Your Idaho Paycheck
Boise State or Idaho Stampede fans alike can do a few things to change the size of their paycheck. First you can ask for a raise or take on additional hours if you qualify for overtime. Secondly, if you have a qualifying life event, like getting married or adopting a child, that allows you to claim more allowances, you can fill out a new W-4 form indicating this.
Pay special attention to the tax bill you received in April. If you owed Uncle Sam a large lump sum, you may be claiming too many allowances and it may be a good idea to claim fewer so more taxes get taken out of your paycheck throughout the year. Electing to receive smaller paychecks might seem unfathomable, but think of it as paying your taxes more accurately over the course of the year, as opposed to being hit with a massive bill at tax time.
You can also opt to withhold a dollar amount from each of your paychecks. Let’s say you want $25 taken out of every paycheck. All you have to do is write that amount on the appropriate line when you fill out a new W-4.
On the opposite end of the spectrum, if you ended up getting a big refund check last April, you might want to increase your allowances in order to lower how much tax you are having withheld. It depends on your preference, but some people would prefer to use (or invest) that money during the year, while others might see a tax refund as an opportunity to save without having to worry about it throughout the year.
One option you have is contributing to certain benefit accounts that your employer may offer. Contributing to a Flexible Spending Account (FSA), Health Savings Account (HSA) or a pre-tax commuter program are all ways to lower your taxable income.
You can also shelter your money from taxes in a 401(k) or 403(b) retirement account, where it will grow tax-free. If you can afford it, think about making even a small contribution to a pre-tax retirement account.
Idaho Top Income Tax Rate
| Year | Top Income Tax Rate |
| 2017 | 7.40% |
| 2016 | 7.40% |
| 2015 | 7.40% |
| 2014 | 7.40% |
| 2013 | 7.40% |
| 2012 | 7.40% |
| 2011 | 7.80% |
| 2010 | 7.80% |
| 2009 | 7.80% |
| 2008 | 7.80% |
| 2007 | 7.80% |
| 2006 | 7.80% |
| 2005 | 7.80% |
| 2004 | 7.80% |
| 2003 | 7.80% |
Whether the potatoes or absence of local income taxes are bringing you to Idaho, take a look at our Idaho mortgage guide before making the move to learn all about mortgage rates and getting a mortgage in Idaho.
Most Paycheck Friendly Places
SmartAsset's interactive map highlights the most paycheck friendly counties across the country. Zoom between states and the national map to see data points for each region, or look specifically at one of the four factors driving our analysis: Semi-Monthly Paycheck, Purchasing Power, Unemployment Rate, and Income Growth.
Methodology Our study aims to find the most paycheck friendly places in the country. These are places in the country with favorable economic conditions where you get to keep more of the money you make. To find these places we considered four different factors: semi-monthly paycheck, purchasing power, unemployment rate and income growth.
First, we calculated the semi-monthly paycheck for a single individual with two personal allowances. We applied relevant deductions and exemptions before calculating income tax withholding. To better compare withholding across counties we assumed a $50,000 annual income. We then indexed the paycheck amount for each county to reflect the counties with the lowest withholding burden.
We then created a purchasing power index for each county. This reflects the counties with the highest ratio of household income to cost of living. We also created an unemployment rate index that shows the counties with the lowest unemployment. For income growth, we calculated the annual growth in median income over five years for each county and indexed the results.
Finally, we calculated the weighted average of the indices to yield an overall paycheck friendliness score. We used a one half weighting for semi-monthly paycheck and a one-sixth weighting for purchasing power, unemployment rate and income growth. We indexed the final number so higher values reflect the most paycheck friendly places.
Sources: SmartAsset, government websites, US Census Bureau 2016 5-Year American Community Survey, MIT Living Wage Study, Bureau of Labor Statistics
