Idaho vs Washington: Taxes & Take-Home Pay 2026

Spokane and Coeur d'Alene: neighbours with different bills

Washington does not tax wages; Idaho charges a single 5.30% rate after a 0% band. But Idaho's sales tax averages 6.03% against Washington's 9.57%, and Idaho has no employee payroll programs, while Washington deducts Paid Leave and WA Cares from every paycheck. The net result depends heavily on income.

The pair matters most in the Spokane–Coeur d'Alene corridor and around Lewiston and Clarkston, where people routinely live in one state and work or shop in the other, and for Seattle-area households moving to Boise.

The paycheck: income tax against payroll premiums

Idaho uses the federal standard deduction ($16,100 single, $32,200 joint for 2026) and then taxes income above a 0% band of $4,811 single or $9,622 joint at 5.30%. Washington employees instead pay 0.81% of wages (up to $184,500) for Paid Family and Medical Leave and 0.58% of all wages for the WA Cares long-term care fund.

• Idaho's child tax credit has expired, so children do not reduce Idaho tax beyond the standard deduction.
• Bonuses paid separately are withheld at a flat 5.30% in Idaho; Washington withholds only the payroll premiums.

Sales tax and groceries

Idaho is one of the few states that applies its full 6.00% rate to groceries, but local sales taxes are rare, so the average combined rate is just 6.03%. To offset tax on food, Idaho gives most residents a food tax credit of $155 per person on the income tax return. Washington's 6.50% state rate plus local add-ons averaging 3.07% produce a 9.57% average, reaching 10.70% in some places.

On $30,000 a year of general taxable purchases, a Washington household pays roughly $1,062 more than an Idaho one at average rates. Washington residents who cross into Idaho to shop owe Washington use tax on items brought home for use in Washington, so the saving is not legally available to them.

The food credit roughly cancels Idaho's grocery tax for typical households. A family of four that spends $10,000 a year on groceries pays about $600 of Idaho sales tax on them and gets $620 back as a credit ($155 × 4). Residents who earn too little to need a return can still claim it as a refund.

Cross-border workers

Washington residents who work in Idaho owe Idaho tax on wages for work physically done in Idaho, and must file Form 43 once their Idaho-source gross income is more than $2,500. Washington has no income tax, so there is no home-state credit.

Idaho residents who work in Washington pay no Washington income tax, but Idaho taxes its residents on all income, so they still owe Idaho's 5.30%. Ask your employer whether Washington's PFML and WA Cares deductions apply to your pay for work done in Washington.

Retirees

Idaho does not tax Social Security or Railroad Retirement benefits. It taxes most pensions and IRA withdrawals at the regular rate, with a retirement benefits deduction for a short list of public pensions: federal CSRS and Foreign Service annuities (not FERS), Idaho firefighter and qualifying city police retirement benefits for recipients 65 or older (or 62 and disabled), and retired military pay for recipients 62 or older or disabled. The maximum deduction is reduced by Social Security benefits received.

Washington taxes none of these. Its capital gains tax applies only to long-term gains above the annual standard deduction and excludes real estate and retirement accounts, so it rarely touches retirees.

Residency and the year you move

You are an Idaho resident if you are domiciled there all year, or if you keep a home in Idaho for the whole year and spend more than 270 days in the state. The year you move in or out, file Form 43 as a part-year resident, reporting income while an Idaho resident plus Idaho-source income otherwise. The food tax credit is prorated for the months you were not a resident.

Idaho returns for 2026 are due April 15, 2027. Washington has no individual income tax return, though residents with large long-term capital gains file a separate capital gains return.