Tax rate used in calculating Idaho state tax for year 2008

Withholding Formula (Effective Pay Period 13, 2005)

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
   
   
2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes flexible spending account - health care and dependent care deductions) from the amount computed in step 1.
   
   
3. Add the taxable biweekly fringe benefits (taxable life insurance, etc.) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
   
   
4. Multiply the adjusted gross biweekly wages times 26 to obtain the annual wages.
   
   
5. Determine the exemption allowance by applying the following guideline and subtract this amount from the annual wages to compute the taxable income.

Exemption Allowance = $3,200 x Number of Exemptions

6. Apply the taxable income computed in step 5 to the following table to determine the annual Idaho tax withholding.
   
   

Tax Withholding Table Single
If the Amount of Taxable Income Is:		The Amount of Idaho Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$       0	$ 1,800	$    0.00	plus	0.0%	$        0
1,800	2,959	0.00	plus	1.6%	1,800
2,959	4,118	19.00	plus	3.6%	2,959
4,118	5,277	61.00	plus	4.1%	4,118
5,277	6,436	109.00	plus	5.1%	5,277
6,436	7,594	168.00	plus	6.1%	6,436
7,594	10,492	239.00	plus	7.1%	7,594
10,492	24,978	445.00	plus	7.4%	10,492
24,978	and over	1,517.00	plus	7.8%	24,978





Married
If the Amount of Taxable Income Is:		The Amount of Idaho Tax Withholding Should Be:
Over:	But Not Over:				Of Excess Over:
$        0	$   6,800	$      0.00	plus	0.0%	$        0
6,800	9,118	0.00	plus	1.6%	6,800
9,118	11,436	37.00	plus	3.6%	9,118
11,436	13,754	120.00	plus	4.1%	11,436
13,754	16,072	215.00	plus	5.1%	13,754
16,072	18,388	333.00	plus	6.1%	16,072
18,388	24,184	474.00	plus	7.1%	18,388
24,184	53,156	886.00	plus	7.4%	24,184
53,156	and over	3,030.00	plus	7.8%	53,156



7. Divide the annual Idaho tax withholding by 26 and round to the nearest dollar to obtain the biweekly Idaho tax withholding.