A new income tax, a lower sales tax and a much lower minimum wage
By J&H Digital Services LLCChecked Oct 23, 202616 sources
Washington has no tax on wages, so Idaho's flat 5.3% income tax is a new cost for most movers. In return, the average combined sales tax is lower (6.03% against 9.57%), there is no Sound Transit car tax, and a home costs far less than in the Seattle area, but the minimum wage is $7.25 against Washington's $17.13. Washington also signed a 9.9% tax on income above $1 million that starts in 2028, and it faces a court challenge.
| Topic | Washington | Idaho |
|---|---|---|
| Income tax on wages | None | 5.3% flat on all your income once you live here; Social Security is not taxed |
| Sales tax (average combined) | 9.57% | 6.03%; groceries are taxed, with a $155 food tax credit per person |
| Capital gains | A 7% tax on long-term gains above a standard deduction ($278,000 for 2025), with higher rates on the largest gains; real estate is exempt | Included in the income Idaho taxes at the flat 5.3% rate |
| Estate tax | Yes, with a $3 million exemption | None |
| Minimum wage, 2026 | $17.13 statewide; some cities set higher rates | $7.25, the federal rate |
| Car taxes | Seattle-area drivers pay Sound Transit's 1.1% tax on depreciated value | $21 title plus $45 to $69 a year in state registration by age, plus county fees; no value-based fee |
| Marijuana | Legal for adults | Illegal for any use, with no medical program |
Tax rates are top state rates as of Jan. 1, 2026 and average combined sales tax rates for midyear 2026 (Tax Foundation). Washington's 2028 income tax on income above $1 million is not in this table; see the questions below. Source: Tax Foundation, Washington L&I, Washington DOR, Idaho State Tax Commission
| Metro | Typical home value | Typical rent (all rentals) | Top state income tax |
|---|---|---|---|
| Boise, ID | $492,000 | $1,924 | 5.3% flat |
| Seattle, WA | $720,000 | $2,250 | None on wages |
| Spokane, WA | $415,000 | $1,512 | None on wages |
Metro areas. Home values: Zillow ZHVI, Sept 2026. Rents: Zillow Observed Rent Index, all rentals, Sept 2026. Tax: top state rate on wages as of Jan 1, 2026. Spokane costs about the same as Boise or less, so not every Washington move saves money. Source: Zillow, Zillow, Tax Foundation
Idaho taxes all your income at 5.3% once you live here, even if your employer is in Washington. Ask your employer to start Idaho withholding, or make estimated payments.
Take your Washington title and ID to the sheriff's license office and the county assessor's motor vehicle office.
If you have large investment gains or a large estate, ask a tax professional about timing and residency before you sell or move.
File Form 43 for your move year, due April 15. Washington has no personal income tax return to file on wages.
On wages, yes. Washington has no tax on wages, and Idaho taxes income at a flat 5.3%. That is partly offset by a lower sales tax (6.03% against 9.57% on average), no Sound Transit car tax and a $155 food tax credit, and by housing that costs far less than in the Seattle area. The net effect depends on your income and spending, so run your own numbers.
A narrow one. Governor Ferguson signed a 9.9% tax on income above $1 million on March 30, 2026. It starts in 2028, with the first payments due in April 2029, and a lawsuit challenging it is pending. It would not affect most households. It is one reason some high earners compare Idaho's flat 5.3% with Washington's future rate.
Washington taxes long-term capital gains above a standard deduction at 7%, with higher rates on the largest gains, and real estate is exempt. Its estate tax has a $3 million exemption, with a top rate of 20% for deaths after July 1, 2026. Idaho has no estate tax, no inheritance tax and no gift tax, and it includes capital gains in the income it taxes at 5.3%. Ask a tax professional before you sell large holdings.
Compared with Seattle, a lot. A typical home is about $492,000 in the Boise metro against $720,000 in Seattle, and a typical rent is about $1,924 against $2,250 (Zillow, Sept 2026). Spokane's prices are close to Boise's.
It depends on your job. Idaho's $7.25 minimum wage is far below Washington's $17.13, but private-sector pay in the Boise area averages about $38.02 an hour, about even with the nation (Sept 2026). Boise is on Mountain Time, one hour ahead of Washington.
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