Idaho Rental Costs

The National Low Income Housing Coalition has produced a nationwide report analyzing and comparing the cost of rent to wages. The Idaho State highlights are below.

Statewide:

• $13.56: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 75: Work hours per week at minimum wage to afford Rent (FMR).
• 1.9: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $705.00
• $2,351.00: Monthly ($28,214.00 annually) income necessary for FMR to be affordable.

Latah County:

• $12.88: Fair Housing Wage (wage necessary to afford Fair Market Rent (hereafter "FMR") without paying more than 30% of income to rent & utilities)
• 1.8: number of full-time jobs at minimum wage to afford Rent (FMR).
• 2 Bedroom FMR: $670.00
• $2,233.33: Monthly ($26,800.00 annually) income necessary for FMR to be affordable.

Fair Market Rent (including utilities) is the cost for a two-bedroom apartment, i.e. $705.00 statewide and $670.00 in Latah County.

Affordability is defined as the ability of a renter to pay no more than 30% of its income on housing (including utilities), this is the federal standard for affordability.

Tax Freedom Day 2015 (April 24th)

The Tax Foundation calculates the 2015 Tax Freedom Day as April 24, 2015.

This is calculated as the day of the year when the nation as a whole has earned enough money to pay its total tax bill for that year.

Tax Foundation Key Findings:

• Americans will spend more on 2015 taxes than they will on "food, clothing, and housing combined."
• Americans will pay 31% of the nation's income in taxes.
• Americans will pay $3.3 Trillion in federal taxes, $1.5 Trillion in state and local.
• Washington residents Tax Freedom day: April 29, 2015
• Idaho residents Tax Freedom day: April 14, 2015.

Graphic from the Tax Foundation:

Washington State: Lowest Marginal Tax Rates for Pass-Through Businesses

According to the Tax Foundation, Washington State has the lowest marginal tax rate for "pass-through businesses." A "pass-through" business includes sole proprietors, S Corporations, limited liability companies (LLCs) and partnerships.

The Tax Foundation calculates Washington State's "Top Marginal Tax Rate" for Sole Proprietorships and Partnerships (including LLC's which have no made an "S election") at 42.6%. It calculates the "Top Marginal Rate" for S-Corporations at 39.6%.

The rates calculated for Idaho are 48.2% for Sole Proprietorships and Partnerships and 45.3% for S-Corporations. The rates calculated for Oregon are 49.8% for Sole Proprietorships and Partnerships and 46.8% for S-Corporations. 

The reason that Washington rate is lower than other states is because Washington State does not have an income tax.

Additionally, the Tax Foundation reports that 95% of businesses nationwide are "pass-through" entities. This means that Washington State has a significant edge over other states. 

The Tax Foundation's report can be found here.

Attorney Jess Monnette now licensed to practice in Idaho!

Effective October 3, 2013, Jess Monnette is now admitted to practice law in the State of Idaho. Although Jess will continue to practice in Wenatchee and throughout North Central Washington, he is eager to expand his practice to serve clients in Idaho.

Jess's practice areas include Business Law, Creditor & Debtor, Estate Planning & Wills, Probate, Elder Law, Tax Law & Planning, IRS disputes and Real Estate.