Why Taxes in Idaho Aren’t as Stressful as You Think
It is the most dreadful time of year. No, I am not talking about winter or about Valentine's Day, which just passed. It is tax season. Taxes are a burden to fill out and do, and they can often lead to us owing money to the government or the state that we don't want to pay. There are times you get money back, and depending on how much you get back, it can be enjoyable, but the burden of filing taxes is still not fun. When it comes to taxes in Idaho, like any other state, we complain and hate it, but it could be worse. Which states have the lowest taxes, which have the highest, and how does Idaho compare?
States with Highest and Lowest Property and Vehicle Property Taxes
There are many taxes to pay each year, but for this article, we are going to focus on property tax and vehicle property tax. WalletHub recently released a list ranking the states from lowest taxes to most and used different categories, such as effective real estate tax rate, annual taxes on homes $249.9 thousand or more, state median home value, and annual taxes on homes priced at state median home value. Using these criteria, it was determined that Hawaii has the lowest property taxes, with Alabama having the second lowest and Colorado rounding out the top three. The state with the highest property taxes is New Jersey, with Illinois being the second highest and Connecticut rounding out the bottom three. In terms of vehicle property taxes, half of the country does not include this tax, but for those wondering, it is the highest in Virginia, with Mississippi having the second highest and Missouri having the third highest.
How High or Low is Property Tax in Idaho?
When it comes to property taxes in Idaho, things could be much worse as Idaho ranks at 14 for the lowest. The annual tax on a home of $249.9 thousand or more is $1,546. The state median home cost is $266,500, with the annual tax on that home being $1,682. As far as vehicle property tax, Idaho is one of the 25 states that does not include that tax, making taxes a little bit better in the Gem State. While these numbers may still sound like a lot of money, compared to other states it isn't that bad.
While tax season will still be miserable for most of us, knowing how bad it could be compared to what other states pay helps. The headache of filing taxes and the time it takes is stressful, but if you get a decent return back it will all be worth it. The fun part of tax season is finding out you get a check back, and then deciding on how to spend it. If you haven't begun doing your taxes, do not fret, there is plenty of time, but don't put it off for too long, and let this article serve as a friendly reminder to get started on them. If you would like to see the full list broken down, make sure to click the link above.