Idaho State Withholding
Idaho withholding is not supported by an Idaho resident working in another state. You are an Idaho resident if you are domiciled in Idaho for the entire year. Idaho has a state income tax of 5.8%. It’s a progressive income tax in seven brackets that range from 1.125% to 6.925%. You must have an Idaho withholding account if you have an employee earning income while in Idaho.
Required Permits and Tax Exemptions
Idaho requires businesses to register for certain permits. These include sales/use permits and income tax withholding. The software does not support local income tax courtesy withholding for employees that work in one state but live in another state with local income taxes imposed.
Idaho has exemptions from specific tax items. Many states are sales-tax exempt for food. Some states charge a lesser sales tax on food items.
Tax ID Number in Idaho
Idaho has a state income tax of 5.8%. It’s a progressive income tax with rates from 1.125% to 6.925%. Idaho is not required for an Idaho resident working in another state. You are an Idaho resident if domiciled there the entire year. You must register for an Idaho withholding account if you have an employee earning income there.