Washington V/S Idaho Tax load for seniors ? (sales, vehicle registration)

[silverfox]

Does anyone out there have a handle on the Taxes, primarily on income side in these two states. From the Data I have found it appears that Washington has the edge without a State income tax and also with a sales tax exemption on most food products. Unlike in Oregon where there is also a State Income tax but they have no Sales tax as an offset.
I am primarily concerned about the IRS rule requiring distribution out of your 401K and Traditional IRA at age 70 1/2. This money will be eligible for the 7.8% state income tax in Idaho and up to 9% in Oregon.

Seems to me like a considerable extra expense penalty just to hang your shingle in Oregon or Idaho.

Maybe there are some other offsets I am unaware of.

Would appreciate any comments especially if you currently live in Idaho.

[suzee]

WA has no income tax, but a very high sales tax even though food is exempt. I believe property taxes are also high, as are other fees, like vehicle registration.

sue

[silverfox]

Suzee,

The sales tax rate where I live in Washington is 8.4% with no sales tax on most food and prescrition drugs. Difference of 2.4% from Idaho's 6% rate.
The savings on food alone is a large savings.I would estimate food purcahses at $5000 per year X 6% =$300
The vehicle registration fees used to be outrageous but was reduced drastically with the Tim Iman initiative to $30 + some years back. There has been some adjustment since then but still not bad.
Washington gasoline tax is approx .10 higher per gallon but prices of gasoline vary also by location so its hard to put a figure on that one.

The property tax issue sounds valid in favor of Idaho, but that too varies wildly by the cost of housing and valuations in the area you live. You would have to compare apples to apples on that one too.
There is also an available Large Sales Tax deduction from your Federal taxes in Washington, good for 2006/7/8 if you qualify. That would be a big "one time plus" if you are building or buying a new home in Washington in those years.
Please don't get me wrong Suzee, I am not trying to prove you wrong. I am just attempting to bring out any and all information that will help me and/or others viewing this thread.
Each person that responds will have contributed something toward that goal.

So to sum it up, I still feel that the big issue that will effect most people is the State Income Tax burden. The more income you have the more it will effect you and it looks like a large portion of the effected would be in the 7.8% bracket.

Lets see if anybody else can give us some more input.