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HEAD-TO-HEAD TAX COMPARISON Β· 2026

COUNTRY A Washington VS COUNTRY B Idaho

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

OVERVIEW
Washington does not tax wages, so a single filer earning $100,000 pays $4,185 less state income tax than in Idaho, which charges a flat 5.3% above a small zero-rate bracket. That is only one of three big taxes, though. Washington's state sales tax is 6.5% and the Tax Foundation puts its average combined state and local rate at 9.51%, versus 6.03% in Idaho (Tax Foundation, rates as of 1 January 2026). The Tax Foundation also reports a higher effective property tax rate on owner-occupied housing in Washington (0.75%) than in Idaho (0.50%). Using those statewide averages on illustrative households, Washington still comes out ahead at $100,000 of wages (about $2,065 a year in our example below), but at $50,000 the gap shrinks to roughly $158 a year, and your own home value, county and spending can move the result either way. Washington also has a Business and Occupation (B&O) gross receipts tax on business revenue, a 7% capital gains tax on long-term gains above a deduction ($278,000 for 2025), and a new 9.9% tax on individual income above $1 million that starts in 2028. This comparison is single filer, wages only, 2026, and state-level only: it does not model Idaho's food tax credit, local property levies, or itemised deductions.
Section 01

The Big Picture

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

🌲
COUNTRY A
Washington
TAX RATE
0%
No Income Tax on Wages

No tax on wages today; 7% capital gains tax (9.9% above $1M of gain); 9.9% tax on income above $1M from 2028

πŸ₯”
COUNTRY B
Idaho
TAX RATE
5.3%
Flat Income Tax

5.3% flat rate above a small zero-rate bracket; 6% state sales tax; low average property tax

TYPICAL ANNUAL DIFFERENCE
Moving from Idaho β†’ Washington at $100,000
$4,185

State income tax only, single filer, wages only, 2026. Sales and property tax narrow the gap (see the FAQs for worked examples).

Section 02

Tax Savings by Income Level

Net take-home after all income tax, social contributions, and surcharges β€” for a single employee with no dependents.

GROSS INCOME
🌲 WA TAX
πŸ₯” ID TAX
SAVINGS
10-YEAR
$50,000
$0
$1,535
$1,535
$15,350
$75,000
$0
$2,860
$2,860
$28,600
$100,000
$0
$4,185
$4,185
$41,850
$150,000
$0
$6,835
$6,835
$68,350
$250,000
$0
$12,135
$12,135
$121,350
$500,000
$0
$25,385
$25,385
$253,850
πŸ’‘

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🌲

Washington Pros & Cons

+ PROS
  • No state income tax on wages and salary in 2026; the 9.9% tax on income above $1 million does not start until 1 January 2028
  • Food is exempt from retail sales tax, so groceries carry no sales tax (WA Department of Revenue)
  • Property is assessed at 100% of market value but is subject to a 1% annual levy limit (WA Department of Revenue); the Tax Foundation reports a 0.75% average effective rate
  • B&O small business credit and filing threshold are scheduled to increase (credit from 1 January 2029; filing threshold to $250,000 under ESSB 6346)
βˆ’ CONS
  • Higher sales tax: 6.5% state rate and a 9.51% average combined rate, 3rd highest in the US (Tax Foundation, 1 January 2026)
  • B&O gross receipts tax applies to business revenue whether or not the business is profitable (for example 1.5% on service income under $1 million)
  • 7% capital gains tax on long-term gains above the annual deduction ($278,000 for 2025), 9.9% on taxable gains above $1 million
  • 9.9% tax on individual income above $1 million begins in 2028 (ESSB 6346, Chapter 238, Laws of 2026), and the estate tax threshold is $3 million for deaths from 1 July 2026
πŸ₯”

Idaho Pros & Cons

+ PROS
  • Lower sales tax: 6% state rate with a 6.03% average combined rate (Tax Foundation, 1 January 2026)
  • Lower average effective property tax rate (0.50% per the Tax Foundation) plus a homeowner's exemption of 50% of home value up to $125,000 for 2026
  • Idaho Food Tax Credit: $155 per person for tax year 2025, or up to $250 per person with receipts, to offset sales tax on food
  • No state estate or inheritance tax (Tax Foundation)
βˆ’ CONS
  • 5.3% flat income tax on wages above a small zero-rate bracket: $4,185 at $100,000 for a single filer
  • Groceries and meals are subject to sales tax (the Food Tax Credit only partly offsets this)
  • No separate capital gains rate: gains are generally part of taxable income, so a large gain can cost more than in Washington
  • Some resort cities add local option sales taxes on top of the 6% state rate
FAQ

Frequently Asked Questions

How much state income tax does Washington save compared with Idaho?

For a single filer with wages only in 2026, Washington's state income tax is $0 at every income level. Idaho's is $1,535 at $50,000, $2,860 at $75,000, $4,185 at $100,000, $6,835 at $150,000, $12,135 at $250,000 and $25,385 at $500,000 (our calculator engine, using Idaho's 5.3% rate and the federal standard deduction). Federal income tax and Social Security and Medicare payroll taxes are the same in both states, so the difference is the state income tax shown.

Do Washington's higher sales and property taxes cancel out the income tax savings?

Partly, depending on income. This is an illustration using statewide averages from the Tax Foundation, not a prediction for your address: sales tax 9.51% in Washington vs 6.03% in Idaho; effective property tax 0.75% vs 0.50%. Example 1 (single filer, $100,000 wages, $500,000 home, $25,000 of taxable purchases, assumed): Washington property tax $3,750 plus sales tax $2,378 = $6,128; Idaho income tax $4,185 plus property tax $2,500 plus sales tax $1,508 = $8,193. Washington is about $2,065 cheaper. Example 2 ($50,000 wages, $300,000 home, $18,000 taxable purchases, assumed): Washington $2,250 + $1,712 = $3,962; Idaho $1,535 + $1,500 + $1,085 = $4,120, a gap of only about $158. Example 3 ($250,000 wages, $800,000 home, $40,000 taxable purchases, assumed): Washington $6,000 + $3,804 = $9,804; Idaho $12,135 + $4,000 + $2,412 = $18,547, a gap of about $8,743. These figures exclude the Idaho food tax credit (a $155 per person offset for tax year 2025) and the Idaho homeowner's exemption, and Washington exempts food from sales tax, so a household that spends heavily on groceries narrows Idaho's disadvantage. Your result depends on your city, county and actual spending.

What is Washington's B&O tax and does it affect me?

The Business and Occupation (B&O) tax is a gross receipts tax on business revenue, paid whether or not the business makes a profit. The Department of Revenue lists rates of 0.471% for retailing, 0.484% for manufacturing and wholesaling, and 1.5% for service and other activities under $1 million (1.75% for $1 million to $5 million and 2.1% above $5 million). Example: a sole proprietor with $100,000 of service revenue would owe $1,500 before any small business credit, which currently stands at $160 a month for service businesses and $55 a month for other businesses and is scheduled to rise to $375 and $125 a month from 1 January 2029 (House Bill Report, ESSB 6346). Wage earners do not pay B&O tax. Idaho taxes business owners through its income tax rather than a gross receipts tax; confirm your own situation with a tax professional.

Does Washington State have a capital gains tax?

Yes. Washington levies a 7% excise tax on long-term capital gains above an annual standard deduction ($278,000 for 2025; the 2026 indexed figure had not been confirmed on the Department of Revenue page we checked), and 9.9% on taxable gains above $1 million. Real estate, retirement accounts and certain business assets are exempt. Example: a $500,000 long-term stock gain in 2025 would owe (500,000 - 278,000) x 7% = $15,540 in Washington. Idaho has no separate capital gains tax; gains are generally part of taxable income, so up to 5.3% (about $26,500 on $500,000) could apply before any Idaho deductions that we have not verified. Large gains therefore usually favour Washington.

What is Washington's new 9.9% tax on income over $1 million?

ESSB 6346, signed on 30 March 2026 (Chapter 238, Laws of 2026), imposes a 9.90% tax on individual income above $1 million beginning in calendar year 2028, with a $1 million deduction per person (or combined for married couples). First returns and payments are due in 2029. It also interacts with the existing capital gains tax. It does not affect wages below $1 million, so Washington remains a no-tax state for most wage earners through at least 2027. High earners who plan to stay for years should factor it in.

Does Idaho tax groceries, and what is the Food Tax Credit?

Idaho taxes food at the 6% state sales tax rate, but residents can claim a Food Tax Credit on their return. For tax year 2025 it is $155 per person (you, your spouse and each qualifying dependent), or up to $250 per person if you submit receipts for sales tax paid on food (Idaho State Tax Commission). The figure for tax year 2026 was not confirmed when we wrote this. Washington exempts food from retail sales tax (WA Department of Revenue).

How does Idaho's flat tax compare to other Mountain West states?

Idaho's rate is a flat 5.3% above a zero-rate bracket. At $100,000 for a single filer, our 2026 engine gives Idaho $4,185, Utah $4,450, Colorado $3,692, Montana $4,289 and Nevada and Wyoming $0. Washington's $0 on wages places it with Nevada and Wyoming for wage earners, though its sales tax is much higher than theirs.