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HEAD-TO-HEAD TAX COMPARISON · 2026

COUNTRY A Texas VS COUNTRY B Idaho

Side-by-side analysis of income tax, effective rates, and take-home pay for Texas and Idaho in 2026.

Daniel · CountryTaxCalc Updated August 2026 Tax Comparison 2026
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OVERVIEW
Texas and Idaho sit at opposite ends of the tax-policy spectrum: Texas has no state income tax at all (constitutionally prohibited since 1993), while Idaho charges a 5.3% flat rate on all income, down from 5.8% under a phase-down that began with a 2022 tax reform. At $100,000 income, that means Texas residents keep $4,447/year more than Idaho residents in state income tax alone, and the gap widens fast — $7,097/year at $150K, $12,397/year at $250K, and $25,647/year at $500K. But Texas's tax-free status comes with a catch: property tax. Texas averages 1.6% of home value annually, among the highest in the US, while Idaho's property tax averages just 0.54% — the 7th-lowest nationally. On a $400,000 home, that's roughly $6,400/year in Texas versus $2,160/year in Idaho, a $4,240 swing that meaningfully narrows the net advantage for homeowners moving to Texas. Idaho also has real economic momentum behind its lower-than-it-used-to-be tax rate: Micron's $15 billion Boise-area investment and heavy California in-migration have made Boise one of the fastest-growing metro areas in the country. Renters and high earners benefit most from choosing Texas; homeowners weighing a move to Idaho should run both the income-tax and property-tax numbers together before deciding.
Section 01

The Big Picture

Top-line rates and effective take-home for a typical earner — including income tax, social contributions, and applicable surcharges.

⭐
COUNTRY A
Texas
TAX RATE
0%
No Income Tax
No state income tax — constitutionally prohibited since 1993
🥔
COUNTRY B
Idaho
TAX RATE
5.3%
Flat Tax
Flat 5.3% (reduced from 5.8% under an ongoing 2022 phase-down)
TYPICAL ANNUAL DIFFERENCE
Moving from Idaho → Texas at $100,000
$4,447
That's TX saves $371/month back in your pocket
Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges — for a single employee with no dependents.
GROSS INCOME
⭐ TX TAX
🥔 ID TAX
SAVINGS
10-YEAR
$50,000
$0
$1,797
TX saves $1,797
$17,970
$75,000
$0
$3,122
TX saves $3,122
$31,220
$100,000
$0
$4,447
TX saves $4,447
$44,470
$150,000
$0
$7,097
TX saves $7,097
$70,970
$250,000
$0
$12,397
TX saves $12,397
$123,970
$500,000
$0
$25,647
TX saves $25,647
$256,470
💡

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⭐

Texas Pros & Cons

+ PROS
  • 0% state income tax, constitutionally protected since 1993
  • Booming job markets in Austin (tech), Houston (energy), and Dallas (finance)
  • No state tax return to file — only federal
  • Any future state income tax would require statewide voter approval
− CONS
  • Property tax averages 1.6% — among the highest in the US
  • A $400K home costs roughly $6,400/year in property tax alone
  • Extreme summer heat, 100°F+ for months across most of the state
  • Sales tax up to 8.25% combined state and local
🥔

Idaho Pros & Cons

+ PROS
  • Property tax averages just 0.54% — 7th-lowest in the nation
  • Micron's $15B Boise investment is driving explosive tech-sector job growth
  • Social Security is fully exempt from state tax at any age
  • Flat 5.3% rate is simple and has been phasing down since the 2022 reform
− CONS
  • 5.3% flat tax costs $4,447/year more than Texas at $100K income
  • Boise home prices have risen sharply (roughly +91% from 2015-2022) amid the tech boom
  • Job market is still tiny compared with Texas's major metros
  • Idaho closely reviews new residency claims from recent California transplants
FAQ

Frequently Asked Questions

How much do I save moving from Idaho to Texas?

At $100,000 income, Texas saves $4,447/year in state income tax alone, since Idaho charges a flat 5.3% and Texas charges 0%. The gap grows with income: $7,097/year at $150K, $12,397/year at $250K, and $25,647/year at $500K. Factor in Texas's higher property tax before assuming the full savings will show up in your budget.

Does Texas's high property tax cancel out its 0% income tax advantage?

Partially, but not entirely for most earners. Texas averages 1.6% property tax versus Idaho's 0.54% — on a $400,000 home, that's about $6,400/year in Texas vs $2,160/year in Idaho, a $4,240 difference. At $100K income, Texas's $4,447 income-tax savings still comes out ahead, but the margin shrinks considerably for owners of expensive homes.

Why is Idaho's income tax rate only 5.3% now instead of 5.8%?

Idaho switched from a progressive 1-6% system to a flat tax via House Bill 436 in 2022, initially set at 5.8%, with the legislation building in an annual phase-down as state revenue allows. The rate has since dropped to 5.3% for 2026, and business groups continue pushing for further cuts toward 5%.

Does Idaho tax Social Security or retirement income?

Idaho fully exempts Social Security from state tax at any age or income level. However, pensions, 401(k), and IRA withdrawals are fully taxed at Idaho's 5.3% flat rate. Texas has no state income tax at all, so no retirement income of any kind is taxed there.

Which state is better for homeowners, Texas or Idaho?

It depends on home value and income. At $100K income with a $400,000 home, Texas's combined income-plus-property-tax cost is still lower than Idaho's, but the gap ($4,447 income savings minus $4,240 extra property tax = roughly $207/year) is far smaller than the headline income-tax difference suggests. Renters see the full $4,447 advantage from Texas.

Is Idaho's tech job market big enough to compete with Texas?

Not yet in scale, but it's growing fast. Micron's $15 billion Boise-area expansion, plus HP and Clearwater Analytics, have made Boise one of the fastest-growing US metros. Still, Idaho's total job market is a small fraction of Austin, Houston, or Dallas — many California-to-Idaho movers keep remote jobs rather than switch employers.

How does sales tax compare between Texas and Idaho?

Texas charges 6.25% state sales tax plus up to 2% local, for a combined rate as high as 8.25% in many cities. Idaho charges a flat 6% state sales tax with limited local add-ons, making it modestly cheaper for everyday spending on top of its lower property tax.

Should high earners choose Texas or Idaho?

Texas wins clearly for high earners on pure tax math — at $500,000 income, Texas saves $25,647/year versus Idaho's flat 5.3% rate, an amount that dwarfs any property tax difference for all but the most expensive homes. Idaho becomes more competitive only for buyers of unusually large, high-value Texas properties.
From the brief
NL27%new 2027 rate, down from 30%
DK65.4kkr/mo threshold, cut from 78k
MT1940snon-dom regime unchanged since
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