Idaho Guide for Canadians

Quick Facts

State Income Tax	Flat 5.3% (reduced from 5.695% in 2025)
Sales Tax	6% state + local (average 6.03%)
Driver's License Grace Period	30 days for new residents
Residency Requirement for Tax	Intent to make Idaho permanent home
Vehicle Registration Deadline	90 days for new residents
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Idaho mailing address

Week 3-4: Official Registration

• Apply for Idaho driver's license (within 30 days)
• Complete knowledge and skills tests
• Begin vehicle registration process (within 90 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Complete vehicle registration (within 90 days)
• Establish Idaho ties and connections
• Research healthcare options and insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Original valid Canadian passport (proof of legal presence)
• Social Security Number or letter of ineligibility
• Two proofs of Idaho residential address (within 90 days)
• Birth certificate or citizenship documents for identity

Testing Requirements:

• Written knowledge test required for Canadian citizens
• Vision screening required
• Road skills test required - Idaho does not recognize foreign licenses
• Canadian license will be returned after successful testing

REAL ID Option:

• Available for qualifying non-citizens with proper documentation
• Required for domestic air travel after May 7, 2025
• Enhanced Driver's License not available in Idaho
• Passport required for international travel

Important Notes:

• 30-day limit to get Idaho license after establishing residency
• REAL ID required by May 7, 2025 for air travel
• Must surrender out-of-state license upon Idaho license issuance
• Vision screening required for all applicants

Vehicle Registration

• Register within 90 days of establishing residency
• Must be titled in Idaho before registration
• 6% sales tax on vehicle value
• Idaho insurance required for registration
• Annual registration renewal required

Tax & Residency Considerations

Idaho State Tax Structure

• **Flat income tax** 5.3% on all income (reduced in 2025)
• **No tax on most retirement income** including pensions
• **No inheritance tax** or estate tax
• **Low property taxes** (0.69% effective rate)
• **Moderate sales tax** 6% state + local (6.03% average)

Establishing Idaho Tax Residency

Idaho residency is primarily based on domicile and intent:

• Domiciled in Idaho (intent to make permanent home)
• Present in Idaho for more than 9 months of tax year
• Maintaining permanent place of abode in Idaho

Documentation to Establish Residency

• Idaho driver's license and voter registration
• Bank accounts and utility bills in Idaho
• Employment or business activities in Idaho
• Professional licenses, club memberships
• Property ownership or long-term lease

Tax Advantage

Idaho's new 5.3% flat income tax rate, combined with no tax on retirement income and very low property taxes, makes it one of the most tax-friendly states for Canadian residents. The state also offers a grocery tax credit.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Idaho has not expanded Medicaid for non-citizens
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Boise, Coeur d'Alene, Twin Falls

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Research pharmacy options and discount programs

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Idaho domicile-based residency requires careful planning

Property Considerations

• Affordable property values, especially outside Boise metro
• Very low property tax rates (0.69% effective)
• Various local tax exemptions available
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• Four distinct seasons with snowy winters
• Outdoor recreation paradise - skiing, hiking, fishing
• Low cost of living compared to most western states
• Growing Canadian communities in resort areas

Border Proximity Considerations

• Northern Idaho borders British Columbia
• Multiple border crossings to Alberta and BC
• Enhanced Driver's License not available in Idaho
• NEXUS/Global Entry beneficial for border crossings

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Idaho
• I-94 registration now required for 30+ day stays

Outdoor Recreation Paradise

Idaho offers world-class outdoor recreation with excellent skiing, hiking, fishing, and hunting opportunities. The state's natural beauty combined with low taxes makes it attractive for active Canadian retirees and outdoor enthusiasts.

Key Contacts & Resources