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866.495.8877
P.O. Box 164
Liberty Lake, WA 99019
Tax Structure
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TWO TAX STRUCTURES
Idaho and Washington take different approaches to corporate and personal taxes. In Idaho, low corporate and personal income tax rates provide revenues to operate the state. Washington bases its business and occupation tax on gross revenues and imposes no personal income tax.

Other benefits produce additional balance sheet flexibility. Investment tax credits, community block and rural business development grants, tax increment financing, and community empowerment zone credits are among them.

STATE TAX HIGHLIGHTS

Tax Category Washington Idaho California
C Corporation income tax None 7.6% 8.84%
S Corporation income tax None Federal law 1.5%
Limited Liability income tax None Federal law $979-$8814
Partnership income tax None Federal law Federal law
Individual income tax None 7.8%>$22,074 S
7.8%>$44,148 M
9.3%>$35,792 S
9.3%>71,584 M
Motor Vehicle licenses $30 $24-$28 $27 + 2% of value
Sales and use tax 7.6%-8.5% 6.0% 8.25%
Occupational tax 0.484% None None
Real and personal property tax $9.27-$18.27 per $1,000 value $9.49-$27.97 per $1,000 value
(1st $50,000 exempt)
$9.49-$27.97 per $1,000 value
Realty transfer tax 1.28% Not imposed $0.55/$500
Unemployment tax 0.97%-5.4% up to $30,500 0.2%-5.4% up to $24,500 0.7%-5.4% up to $7,000

Sources: Idaho Department of Commerce & Labor; Washington Department of Revenue

Photo credits—University of Idaho Research Park.

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