Washington or Idaho: How Do Income Tax, Sales Tax, and Home Sale Tax Differ When You Move to Pullman or Moscow?

Washington has no state income tax but charges more at the register, with Pullman's combined sales tax at 8.2 percent as of July 2026, and a seller paid real estate excise tax of 1.1 to 3 percent when a home sells. Idaho taxes income at a flat 5.3 percent for 2025, Moscow's sales tax is 6 percent with no local add on, and Idaho has no state tax on a home sale. Which side costs less depends mostly on how much you earn versus how much you spend and whether you plan to sell a home.

This is written for People relocating to the Palouse who are deciding whether to live on the Washington side in Pullman or the Idaho side in Moscow.

Income tax: the biggest line item

• Washington has no personal income tax, so a Pullman resident's paycheck is not taxed by the state.
• Idaho taxes individual income at a flat 5.3 percent for tax year 2025, down from 5.69 percent, on Idaho taxable income above a small zero rate threshold of $4,811 for single filers and $9,622 for married filers.
• On an $80,000 salary that is roughly $4,000 a year in Idaho state income tax that a Washington resident does not pay.
• Idaho also taxes nonresidents on wages earned inside Idaho, so a Pullman resident working in Moscow may still owe Idaho tax on that income. Confirm your specific situation with a tax professional.

Sales tax: Idaho is cheaper at the register

• Pullman's combined sales tax rose to 8.2 percent in July 2026 after a city council vote to address a budget shortfall, made up of the 6.5 percent state rate plus local rates.
• Moscow's sales tax is 6 percent, the Idaho state rate, with no local addition.
• On $20,000 of taxable spending a year the gap is about $440, which matters far less than the income tax gap for most working households.

Selling a home: Washington charges, Idaho does not

• Washington's real estate excise tax is normally paid by the seller: 1.1 percent on the portion of the price up to $525,000, 1.28 percent to $1,525,000, 2.75 percent to $3,025,000, and 3 percent above, plus a small local rate. Those thresholds rise on January 1, 2027.
• On a $500,000 Pullman sale the state portion alone is $5,500 before the local rate.
• Idaho has no state real estate transfer tax, so a Moscow seller pays none.

Putting it together

• Higher earners who spend modestly tend to come out ahead on the Washington side because income tax dominates.
• Households that plan to buy and later sell should factor Washington's excise tax into the exit cost of a Pullman home.
• The eight mile drive between the two towns means many households work on one side and live on the other, and the tax picture follows both the job and the home.

Common questions

If I live in Pullman and work at the University of Idaho, do I owe Idaho income tax?

Idaho taxes nonresidents on income earned in Idaho, so wages from an Idaho employer are generally subject to Idaho tax even for a Washington resident. Confirm with a tax professional for your situation.

Does either state tax the sale of my home?

Washington collects a seller paid real estate excise tax on every sale, graduated from 1.1 to 3 percent plus a local rate. Idaho collects no state transfer tax on a home sale.

A note on scope

This article is general information, not legal, tax, lending, insurance, inspection, or title advice. For those questions, work with the relevant licensed professional. This guide does not rank neighborhoods, schools, or safety.

Next step

Start with the relocation resource, then contact Jordan with your specific move question.

About the author

Jordan Vorderbrueggen writes about buying and selling homes in Pullman, Moscow, and across the Palouse with Woodbridge Real Estate. Hard to Spell, Tough to Beat.