 |
|||
|
|
IDAHO TAXES The following information was derived from a brochure prepared by the Idaho State Tax Commission (revised 11/21/97). It is meant to give an overview of the taxes in Idaho and does not provide comprehensive explanations of Idaho tax laws or rules. Specific questions should be addressed to the Idaho State Tax Commission (1-800-972-7660) or a qualified tax practitioner. The majority of Idaho's tax revenues come from three sources: income tax (personal and corporate), sales/use tax, and property tax. Income tax and sales/use tax is collected by the State Tax Commission. Property taxes are levied and collected by the county where the property is located. The following information gives some general information about each of the taxes: SALES TAX: Description:Sales tax applies to the sale, rental or lease of tangible personal property and some services. (Food is taxed, but prescription drugs are not.) Hotel, motel, and campground accommodations are taxed at a higher rate (7-11%) Cities and counties do not impose sales tax. (Exception: A few small resort cities have a sales tax. McCall and New Meadows do not impose a local sales tax). INCOME TAX (individual): Description:Individual income tax is graduated so higher earnings are taxed at a higher rate. The first $1,000 of taxable income is taxed a 2%, the next $1,000 is taxed at 4%, etc. The maximum 8.2% tax rate is reached at $20,000 of taxable income for single filers and $40,000 for married couples filing jointly. Idaho residents are taxed on their total income, even if it is earned in another state or country. Taxpayers are not required to make estimated payments for their personal income tax return. Most wage earners have income tax withheld by their employers. Credits to offset income tax due include: $15 grocery credit ($30 for persons age 64 or over); credit for tax paid to other states; and credits for donations to Idaho educational entities and some nonprofit youth and rehabilitation facilities. A deduction from taxable income is allowed for deposits into a medical savings account. Retirees:Social Security income and Tier 1 and Tier 2 Railroad Retirement benefits are not taxed. Full-year residents may receive a partial tax exemption for civil service and military retirement income received after age 65 (62 if disabled). Also, the $15 grocery credit is refundable to persons over 62 who are not required to file an income tax return; the credit doubles for persons over 65. PROPERTY TAX: State Average Urban Rate: 1.6847% Description: The rates shown above are statewide average total rates for 1997. A rough estimate of property taxes can be calculated by multiplying the average tax rate by the property value, less exemptions. The actual tax rate is the sum of the tax rates of all the taxing districts in one location. Owner-occupied primary residences in Idaho qualify for a homeowner's exemption; this exempts 50% or $50,000 (whichever is less) of the taxable value of the home (excluding land). Farms qualify for a partial exemption. Retirees: Circuit Breaker property tax reduction of up to $1,100 is available to persons age 65 and older, or widowed or disabled persons of any age who meet income and residence requirements. ESTATE TAX: Description:Estate Taxes are determined by federal requirements. Idaho's estate tax may apply when the gross estate reported to the federal government exceeds $625,000 (as of 1/1/98). INHERITANCE-GIFT TAX: Click below for information on the following:
View
Properties
|| Request Info || Meet
Our Brokers National Realty Exchange, Inc. |
||
