Most individuals are constantly looking for ways to save money. It isn't uncommon to find groups of people going through coupons, looking for sales, and trying to find ways to stretch their household budgets. One way to save money that many people forget is looking for tax exemptions whenever possible. Taking advantage taxation laws regarding exemptions on state tax in Idaho is a great way to help your family save money each year.
There are many states that charge absolutely no sales tax but unfortunately Idaho is not one of them. On the upside there are some ways to save money on taxes in Idaho. The first way is to take advantage of the prescription drugs exemption. Not having to pay taxes on prescription medication can save your family hundreds of dollars each year. Especially if you have a family member that needs medication refills at least once a month.
Another way to save money on taxes in Idaho is to be aware of the tax rates. The sales tax in Idaho is usually six per cent on all items including food. There are also some counties and cities that have an additional local sales tax of three per cent bringing the total sales tax in that area to nine per cent. Whenever ever traveling or shopping in Idaho it is important to avoid spending money in these resort type areas whenever possible to avoid paying unnecessary taxes. If you are an Idaho resident visiting a resort or auditorium wait until you get home to do your grocery shopping!
There are different income ranges and tax brackets in Idaho that are used to determine what percentage of your income will be taxed. Like most states the less you make the smaller percentage the state government will take. There are also deductions and exemptions available to help you save money.
If you are an older or disabled individual then your social security income will be completely exempt from taxes. In addition to those receiving social security benefits anyone that is receiving Tier 1 and Tier 2 railroad retirement benefits is exempt from taxes. There is also a partial tax exemption for civil service and military retirement pensions after the age of 62 if disabled or 65.
Idaho laws maintain there is a state tax in Idaho levied against all property. This tax is approximately one per cent of the full market value of the residence. Homeowners are all able to receive an exemption of up to 50 per cent of their homes value as long as this amount does not exceed $100,000.