Idaho

Moving from Maryland to Idaho would LOWER your total state and local tax burden from 11.3% of income to 10.7% of income — a drop of -0.6 pts. On a $100K household budget, that is roughly 600 in annual savings across income, sales, property, and other taxes combined.

Idaho top marginal income tax rate is 5.695%, versus 5.75% in Maryland. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Idaho state sales tax is 6.00%. With average local add-ons, the combined rate is 6.03%. This applies to most retail purchases but rules on groceries, prescriptions, and services vary.

Idaho median effective property tax rate is 0.49% of home value. On a $400,000 home, that is roughly $1,960/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Idaho has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Idaho: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Idaho capital gains treatment: 60% deduction on qualified Idaho property long-term gains; otherwise taxed as regular income. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Idaho gas tax is 33.0¢/gal — 14.1¢/gal lower than Maryland's 47.1¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Idaho residency rules: Domicile + 270-day rule for statutory residency. Physical presence 270+ days creates residency. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Idaho recent tax law changes: Flat 5.695% rate effective 2025 (down from 5.8% in 2024). Part of multi-year tax cut package.

For the most current tax information in Idaho, visit the official source at https://tax.idaho.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.