Idaho and North Dakota Income Tax Rates Compared

North Dakota’s unemployment rate is under 4 percent while Idaho’s is over 9.5 percent. I have shown the difference in the individual tax rate.

Individual Income Tax rates in Idaho and North Dakota According to Salary Wizard

North Dakota 0 - $32,550 2.1%
$32,551 - $78,850 3.92%
$78,851 - $106,550 4.34%
$106,551 - $357,700 5.04%
Over $357,701 5.54%

Idaho 0 - $1,237 1.6%
$1,238 - $2,474 3.6%
$2,475 - $3,710 4.1%
$3,711 - $4,987 5.1%
$4,988 - $6,184 6.1%
$6,185 - $9,276 7.1%
$9,277 - $24,736 7.4%
Over $24,737 7.8%

Idaho’s top rate is 1.26% higher than North Dakota. The real difference is that everyone in Idaho that makes over $4,988 pays a higher tax rate than those making over $357,701 in North Dakota. Maybe the Idaho legislature should consider reducing the overall rate to 5.5% and having fewer tax brackets similar to the ones in North Dakota.