Idaho
Our ranking: Mixed tax picture
State income tax: 1.125% (on taxable income up to $3,008 for married joint filers and up to $1,504 for individual filers) — 6.925% (on taxable income of $22,558 or more for married joint filers and $11,279 or more for individual filers)
Average state and local sales taxes: 6.03% (groceries are taxed)
Gas taxes and fees: 33 cents per gallon
Idaho took steps to head off an effective state tax increase from the new federal tax law. Among the steps: Increasing the state standard deduction, introducing a new $130 per child tax credit, and lowering tax rates a hair. Even so, Idaho’s top tax rate of 6.925% kicks in at a fairly low bracket ($22,558 for married joint filers), making its income-tax hit feel more like that of a coastal state.
On the other hand, property taxes are low, sales tax modest and the Gem State does not have an inheritance tax or estate tax.
