Tax Comparison: Idaho vs. Washington
On that list, Idaho ranked just ahead of Washington for overall tax burden, which compares amount of taxes paid versus per capita income. Idaho in that ranking was 28th highest in the country, at 9.4 percent of all income going to taxes. Washington stood at No. 29, with a tax rate of 9.3 percent.
Cost of Living in Idaho
Real estate is also pretty affordable in Idaho. Average Cost of Living in Idaho: $39,739 per year. According to MERIC data gathered in the third quarter of 2022, Idaho has the 28th-lowest cost of living in the United States, putting it in the middle of all 50 states and the District of Columbia.
Tax Structure: Washington vs. Idaho
Washington’s and Idaho’s state governments are funded by a cocktail of small taxes — gas taxes, cigarette taxes, alcohol taxes, utility taxes — and big ones. Here’s how Washington and Idaho’s major taxes stack up:
- Sales Tax:
- WA rate: 6.5 percent (not including local taxes); represents 47.2 percent of the WA general fund.
- ID rate: 6 percent; represents 40 percent of the ID general fund.
For property taxes, Washington is much more burdensome: the per capita amount of property tax in the Evergreen state is $1,226; in Idaho it’s $813.
Best State for Taxation
Alaska is widely regarded as the best state for taxes in the United States. With a remarkably low tax burden of 4.60%, Alaska tops the list as the state with the lowest overall tax burden. What sets Alaska apart is its unique revenue system, which relies heavily on oil and gas revenues rather than imposing income or sales taxes on its residents. The absence of a personal income tax and state sales tax translates to significant savings for individuals and businesses alike.
Living Cost Comparison: Washington vs. Idaho
Is it cheaper to live in Washington or Idaho? Idaho is cheaper than Washington. Idaho needs $29,007 to afford bills. Washington needs $35,000.
Factors Influencing Choices
Idaho offers a strong job market and beautiful parks. Idaho’s population boom strains infrastructure. Washington provides employment, outdoor recreation and urban or rural living.
Renewable Energy and Quality of Life
Washington leads the nation in renewable energy. Hydroelectric and wind power supply most energy. The clean power and healthy lifestyles help Washington residents enjoy high life expectancy. U.S. News ranks Washington first and Idaho third as best states to live. Idaho draws praise for budget surpluses and low taxes.
Best State for Taxes
What is the best state to live in for taxes? Alaska, Wyoming, and Washington have low taxes compared to income. Alaska and Wyoming have no state income tax. Washington has no income tax but higher sales and property taxes.
Consideration for Residents
Low taxes attract new residents and businesses. However, states still need revenue for infrastructure strained by rapid growth. Idaho and Washington compete to attract relocating workers.
Tax Burden Comparison
Idaho ranks 28th for tax burden. 9.4% of income goes to state and local taxes. Washington ranks 29th at 9.3%. High earners may move to avoid state income taxes. But they pay more sales and property taxes. Low-income families can struggle most where taxes are regressive. State policies also impact costs for seniors and businesses. Comparing total tax burdens helps choose a financially-friendly state to live.