Idaho Falls Taxes For Residents
As a resident of Idaho Falls it’s important to know and understand what type of taxes you pay throughout the year. Do we need to pay estate taxes? What is our income tax rate in Idaho Falls? What credits are you eligible for to get a tax break?You can find out this information and more below. At Poston, Denney, & Killpack we want to make sure that all Idaho Falls residents and business owners are well informed about the taxes they are currently paying. If you live in Idaho Falls or any part of Idaho you are subject to the following Idaho Falls taxes:
Sales Tax
The rate of Idaho Falls sales tax is 6% ( this is the rate for the entire state of Idaho) Individuals pay this Idaho Falls tax when purchasing merchandise, goods, or services, some exemptions may apply. Sales tax in Idaho falls includes the sale, rental or lease of property and services. Prescription drugs are not taxed in Idaho Falls.
Use Tax
This Idaho Falls tax applies to goods that didn’t have sales tax that you use or store in Idaho Falls. Use tax is a tax that is usually meant for business owners. This tax is paid directly to the state and not the business owner. You can find more information about Sales and Use tax, here.
Property Tax
This tax applies to all real estate property owners. The state oversees property tax, but property taxes are collected and assessed by the county. Property taxes help to fund the local government. You can find out a rough estimate of what your property tax will be for 2017 by taking the value of your property and multiplying it by the average tax rate, minus exemptions. The current rates for Property Tax in the Idaho Falls area are:
- Average Urban Rate: 1.275%
- Average Rural Rate: .832%
Property Tax Exemptions
Homeowners Exemption - This exemption applies to owner-occupied primary dwellings. The rate for the Homeowner Exemption is determined by the Housing Price index annually.
Property Tax Reduction - Sometimes called the CIrcuit Breaker, this exemption applies to qualified low-income homeowners. To use this exemption homeowners must apply and qualify for the Property Tax Reduction each and every year.
Individual Income Tax
The rate for individual or personal income for the Idaho Falls resident varies depending on their income for the year this includes money that was made both in and out of the state). The rate for income tax in Idaho Falls is 1.6% to 7.8%. Depending on the individual's income will determine what tax bracket they fall into. The higher the earnings, the higher the tax rate. Idaho tax brackets are adjusted annually. You can find out what tax bracket you fall in for 2017, here.
There are credits that Idaho Falls individuals can use to offset their income tax. These tax credits include:
- The Grocery Credit - To be eligible you must be an Idaho resident. The average Grocery Credit is about $100 per person.
- Credit for taxes paid to other states.
- Donation Credits - If you made donations to Idaho educational entities, rehabilitation facilities, and some non profit organizations, you are eligible for this credit.
Idaho does not tax benefits from Social Security or the Railroad Retirement Board. However, Idaho does tax all other sources of income, no matter the source.
Some states require additional taxes from their residents. Lucky for Idaho Falls residents, they don’t have to worry about paying a Inheritance, Gift, or Estate Tax.
- Inheritance/Gift Tax- Idaho Falls does not currently have an inheritance tax or gift tax.
- Estate Tax- Idaho Falls did have an Estate tax at one time, but it no longer does. The Idaho Legislature or Congress would have to change the current laws in order for an Estate tax to be reinstated.
If you would like more information on how to calculate your property tax and what exemptions you are eligible for, your Idaho Falls tax experts, Poston, Denney, & Killpack can guide you in the right direction. We also help with bookkeeping, small business tax information, and individual tax filing. Contact us today, to find out more about our tax services in Idaho Falls and how we can save you money.
