Overview of Idaho Taxes
Idaho has five income tax brackets, ranging from 0.00% to 6.00%. The good news is that Idahoans don’t have to worry about local taxes, as there are none in the state.
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Idaho Paycheck Calculator
Idaho Paycheck Quick Facts
- Idaho income tax rate: 0.00% - 6.00%
- Median household income: $76,918 (U.S. Census Bureau)
- Number of cities that have local income taxes: 0
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 taxes and federal income taxes from your pay. FICA taxes include Medicare and Social Security taxes, which are taxed at a rate of 1.45% and 6.2% respectively. Your employer then matches these contributions so that the total amount is double those percentages. Additionally, if you make wages in excess of $200,000, the excess is taxed an additional 0.9% for Medicare, which employers do not match. Federal income tax also goes to the IRS where it is counted toward your annual income taxes.
How much money your employer withholds from your paychecks depends on the information you provide on your W-4 form. This form is one you’ll need to fill out whenever you get a new job or you have a life change, like having a baby. You can also fill out a new W-4 if you just need to make changes to your withholding amount during the year.
Additionally, the fresh version of the Form W-4 comes with new guidelines from the IRS. More specifically, it no longer utilizes total allowances, though it requires filers to enter annual dollar amounts for things like income tax credits, non-wage income, itemized and other deductions and total annual taxable wages. It also features a five-step process that asks filers to enter personal information, claim dependents and indicate any additional jobs or income. For the most part, these changes affect only those making adjustments to their withholdings or changing jobs.
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 jointly or separately) will have an impact on your tax bill. Dependents may also affect your paycheck each month. Keep in mind though, if 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 than if you get paid once per month.
Anyone filing in the Gem State as single or head of household will not get taxed with an annual income under $12,950 ($25,900 for joint filers). Single filers and heads of household earning between $12,950 and $14,612 ($25,900 and $29,224 for joint filers) will pay 1.00%. A 3.00% rate will be charged on single and head of household filers earning between $14,612 and $17,937 ($29,224 and $35,874 for joint filers). The rate jumps up to 4.50% for singles and heads of household earning between $17,937 and $21,261 ($35,874 and $42,522 for joint filers). And the top bracket will charge singles and heads of household earning over $21,261 (more than $42,522 for joint filers) 6.00%.
Singles and heads of household pay the same. And, if you’re married, your income brackets are doubled. No cities in Idaho levy local income taxes.
A financial advisor can help you understand how taxes fit into your overall financial goals. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How You Can Affect Your Idaho Paycheck
Idaho residents can do a few things to change the size of their paychecks. Of course, you can ask for a raise or take on additional hours if you qualify for overtime. If that isn’t an option, though, you can also opt to withhold a specific 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 $25 on the appropriate line when you fill out a new W-4.
How much you withhold form your paycheck comes down to personal preference a bit. Some people would prefer to have their money throughout the year so they can invest it or at least put it in a high-interest savings account. Others like the idea of getting a big refund.
Another options for changing you paycheck size 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. These accounts all use pre-tax money, which means that money goes into these accounts before taxes are removed. By removing this money pre-tax, you decrease how much of your paycheck is subject to taxes. In some cases, this might even push you into a lower tax bracket. In particular, if you can afford it, think about making even a small contribution to a pre-tax retirement account. You’ll help yourself save for the future while also lowering your taxable income now.