Idaho brokerage account growth calculator

What a taxable index-fund account is actually worth after expense-ratio drag and after Idaho takes its share of the gain — which, in most states, is not at the federal preferential rate.

Idaho taxes your gains as ordinary income

There is no state equivalent of the federal preferential rate here — a long-term gain is charged at Idaho's normal income brackets, exactly like wages. This is the common case, and it surprises people who assume the federal 15% carries over. Long-term capital gains are taxed as ordinary income at 5.3%. Idaho begins from federal adjusted gross income, which includes net capital gain in full, and applies a single rate; the federal preferential long-term rate does not carry over. IDAHO DOES HAVE A 60% CAPITAL GAINS DEDUCTION, AND IT IS DELIBERATELY NOT REFLECTED IN THE 'kind' FIELD OR IN exclusionPct - read this before adding one. Idaho Code 63-3022H allows a deduction of sixty percent (60%) of qualifying capital gain net income, but ONLY on an enumerated list of IDAHO-SITUS property, which must have had Idaho situs at the time of sale: real property held at least 12 months; tangible personal property used in a revenue-producing enterprise for at least 12 months; cattle or horses held for breeding, draft, dairy or sporting purposes for at least 24 months; other breeding livestock held at least 12 months; timber grown in Idaho and held at least 24 months; certain partnership interests held at least 12 months; qualified conservation easements conveyed to qualified organizations; federal or state grazing permits and leases transferred with the base property; and certain section 1250 property conveyed in perpetuity. ORDINARY BROKERAGE GAINS - stocks, bonds, mutual funds, ETFs - QUALIFY FOR NONE OF IT. Marking Idaho as an exclusion state, or populating exclusionPct with 60, would hand a 60% break to every investor in the state when the provision is in substance a farm, ranch, timber and Idaho-real-estate measure.