State-by-State Guide to Taxes on Retirees
Tool | November 2019

State-by-State Guide to Taxes on Retirees


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The Bottom Line
Flag of Idaho

Mixed Tax Picture

The Gem State taxes all income, except Social Security and Railroad Retirement benefits. Its top tax rate of 6.925% kicks in at a relatively low level. There is a generous retirement-benefits deduction — but only for those with qualifying public pensions. Idaho does not have an inheritance tax or estate tax.

But, sales taxes are low, and since groceries are taxable, the state offers a tax credit of $100 per person to offset these—and raises it to $120 if you’re over 65.

State Sales Tax

6.0% state levy. Localities (typically resort communities) can add as much as 3%, but the average combined rate is just 6.03%, according to the Tax Foundation. Food is taxable, but the state attempts to offset the levy with a $100 per-person tax credit. Seniors can get $120 per person.

Income Tax Range

Low: 1.125% (on taxable income up to $3,008 for married joint filers and up to $1,504 for individual filers)

High: 6.925% (on taxable income of $22,558 or more for married joint filers and $11,279 or more for individual filers)

Effective tax rate: 5.64% for single filers, 5.96% for joint filers.

Social Security

Benefits are not taxed.

Exemptions for Other Retirement Income

Taxpayers age 65 and older can exclude up to $33,456 of income (2018 amount) from qualifed retirement plans. Joint filers can exclude up to $50,184 (2018 amount). The deduction is reduced by Social Security and Railroad Retirement benefits, which are also exempt from tax. Eligible plans include federal government, Idaho police and firefighter, and military retirement plans.

Property Taxes

In Idaho, residents pay an average of $796 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: Homeowners age 65 or older with income of $30,450 or less in 2018 are eligible for a property tax reduction of up to $1,320. Also, those 65 or older with income of $44,510 or less in 2018 can defer property tax payments.

Vehicle Taxes

Sales tax is due.

Inheritance and Estate Taxes