🇺🇸 Idaho Income Tax — 2026 UPDATE

Idaho Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 22, 2026

Idaho State Income Tax

Table of Contents

Quick Reference

Does Idaho have income tax? Yes
Tax structure: Flat rate (single rate above income threshold)
Tax rate: 5.3% (on Idaho taxable income above $4,811 for single filers)
Standard deduction: Idaho conforms to federal standard deduction amounts (see Note on 2025 Conformity below)
Personal exemption: None (Idaho follows federal IRC, which eliminated personal exemptions)
Local income tax: No
Official source: https://tax.idaho.gov/taxes/income-tax/individual-income/

Key Takeaways

  • Residents: Idaho residents pay income tax on income from all sources, including income earned outside Idaho.
  • Non-residents: Non-residents pay Idaho income tax only on income from Idaho sources.
  • Tax rate: Idaho has a flat rate of 5.3% on all Idaho taxable income above the zero-rate threshold ($4,811 single / $9,622 married for 2025).
  • Local income tax: Idaho does not permit local income taxes. Only state-level income tax applies.
  • Reciprocity: Idaho does not have reciprocal income tax agreements with other states.
  • Primary forms: Form 40 (residents), Form 43 (part-year residents and non-residents).
  • ⚠️ 2025 Conformity Note: In February 2026, Idaho Governor Little signed House Bill 559, conforming Idaho to most provisions of the federal One Big Beautiful Bill Act (OBBBA) for Tax Year 2025. This includes the larger federal standard deduction amounts and an enhanced senior deduction. The Idaho State Tax Commission is updating its systems and forms accordingly. Taxpayers who already filed may be eligible for amended returns.

Source: https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/

Quick Questions About Idaho Income Tax

What is the Idaho income tax rate for 2025?
Idaho has a flat income tax rate of 5.3% for Tax Year 2025, applicable to all Idaho taxable income above the zero-rate threshold ($4,811 for single filers; $9,622 for married filers).

Does Idaho have state income tax?
Yes. Idaho imposes a state individual income tax. The 2025 rate is 5.3% on Idaho taxable income.

What are the income tax brackets in Idaho for 2025?
Idaho uses a simplified two-tier structure: a 0% rate on the first $4,811 of taxable income (single) or $9,622 (married), and 5.3% on all taxable income above those thresholds. See complete rate tables below.

Is Social Security taxed in Idaho?
No. Idaho does not tax Social Security benefits. Social Security benefits are exempt from Idaho income tax.

Does Idaho tax retirement income?
Generally, yes — pensions, 401(k) distributions, and IRA withdrawals are subject to Idaho income tax. However, Idaho offers limited deductions for certain qualifying retirement income. See the Retirees section for details.

Do I need to file an Idaho income tax return?
Idaho residents must file if their gross income meets the filing threshold (for example, $15,000 for single filers under age 65 in 2025). Part-year residents and non-residents must file if Idaho-source income exceeds $2,500.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/

Idaho Income Tax Rates and Brackets (Tax Year 2025, Filed 2026)

The following tax rates and brackets apply to income earned in 2025, reported on tax returns filed in 2026.

Rate Snapshot
Tax Attribute Amount / Status
Tax Rate 5.3% (flat rate above threshold)
Zero-Rate Threshold (Single) $0 – $4,811
Zero-Rate Threshold (Married) $0 – $9,622
Tax Structure Flat (single rate above exemption threshold)
Number of Rate Tiers 2 (0% and 5.3%)
State Income Tax Yes
Local Income Tax No
Standard Deduction Conforms to federal amounts (updated per HB 559 / OBBBA)
Personal Exemption None
Idaho Income Tax Rate 2025 — Single Filers
Taxable Income Tax Rate
$1 – $4,811 0.0%
$4,812 and above 5.3%
Idaho Income Tax Rate 2025 — Married Filers (Filing Jointly or Separately)
Taxable Income Tax Rate
$1 – $9,622 0.0%
$9,623 and above 5.3%

Note: Idaho uses the same rate schedule for married filing jointly, married filing separately, and head of household. The $9,622 threshold applies to married taxpayers; single and head of household filers use the $4,811 threshold.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/individual-income-tax-rate-schedule/


How Idaho Taxable Income Is Computed

Idaho taxable income is calculated as follows:

  1. Start with federal adjusted gross income (AGI)
  2. Add back any Idaho-specific additions (e.g., bonus depreciation, state and local taxes previously deducted)
  3. Subtract Idaho-specific deductions (e.g., qualifying retirement income, military pay outside Idaho)
  4. Subtract the greater of the standard deduction or itemized deductions (note: state and local income taxes are not deductible on Idaho returns)
  5. The result is Idaho taxable income, subject to the 5.3% rate above the zero-rate threshold

Idaho does not allow personal exemptions (conforming to federal law since the 2017 Tax Cuts and Jobs Act).

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


⚠️ Important: 2025 Standard Deduction — Conformity Update

Idaho conforms to the federal Internal Revenue Code (IRC). In February 2026, Governor Little signed House Bill 559, conforming Idaho to the One Big Beautiful Bill Act (OBBBA) for Tax Year 2025. This law increases the standard deduction to the larger federal amounts established under the OBBBA. The Idaho State Tax Commission has programmed its systems to automatically apply the larger standard deduction to taxpayers who take the standard deduction on their 2025 returns.

Key conformity deductions adopted for Tax Year 2025 include:

  • Larger standard deduction amounts (federal OBBBA levels)
  • Enhanced senior deduction
  • Deduction for qualified tips from wages
  • Deduction for car loan interest
  • Deduction for overtime compensation

Taxpayers who already filed before the conformity bill was signed may amend their returns to claim these deductions.

Source: https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/
Source: https://tax.idaho.gov/pressrelease/more-guidance-on-conformity-deductions-and-filing-2025-idaho-income-taxes/

Statutory Authority

State income tax in Idaho is authorized under the following legal framework:

Constitutional Authority:

  • Idaho Constitution, Article VII, Section 5 — grants the legislature the power to establish and collect taxes

Statutory Authority:

Administrative Regulations:

Legislative History:

  • Idaho first enacted a state income tax in 1931
  • Idaho moved from a multi-bracket progressive system to a flat rate structure through a series of reforms: 5 brackets (pre-2022) → 4 brackets (2022) → 2 brackets (2023) → current flat 5.3% rate (effective 2025, reduced from 5.695%)
  • 2025 rate reduction from 5.695% to 5.3% enacted through House Bill 93 (2025 Legislative Session)
  • 2025 conformity to OBBBA enacted through House Bill 559 (signed February 2026)

This page compiles information directly from these statutory and regulatory authorities as implemented by the Idaho State Tax Commission.

Source: https://tax.idaho.gov/governance/statutes/ and http://adminrules.idaho.gov/rules/current/35/350101.pdf

Who Must File Idaho Income Tax

Residents

Idaho residents must file a state income tax return if their gross income for 2025 meets the following thresholds:

Idaho Filing Requirement Thresholds (TY2025)
Filing Status Age as of December 31, 2025 Gross Income Threshold
Single Under 65 $15,000
Single 65 or older $17,000
Married Filing Separately Any age $5
Married Filing Jointly Both under 65 $30,000
Married Filing Jointly One spouse 65 or older $31,600
Married Filing Jointly Both 65 or older $33,200
Head of Household Under 65 $22,500
Head of Household 65 or older $24,500
Qualifying Surviving Spouse Under 65 $30,000
Qualifying Surviving Spouse 65 or older $31,600

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


Part-Year Residents

Part-year residents must file if their total gross income (combined from all sources while an Idaho resident, plus Idaho-source income while a nonresident) exceeds $2,500.

Part-year resident/nonresident return form: Form 43 — Idaho Part-Year Resident & Nonresident Income Tax Return
https://tax.idaho.gov/taxes/income-tax/individual-income/forms/

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


Non-Residents

Non-residents must file if their total gross income from Idaho sources exceeds $2,500.

Idaho-source income for non-residents includes:

  • Wages earned while physically working in Idaho
  • Business income from Idaho operations
  • Rental income from Idaho property
  • Gains from sale of Idaho real property
  • Pass-through income from Idaho partnerships, S corporations, or other entities

Non-resident return form: Form 43
https://tax.idaho.gov/taxes/income-tax/individual-income/forms/

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/


Idaho Residency Defined

You are an Idaho resident for tax purposes if you meet either of these conditions:

  • You maintain a home in Idaho for the entire tax year and spend more than 270 days in Idaho during the year, OR
  • You are domiciled in Idaho for the entire tax year (Idaho is your permanent legal home)

Idaho law also recognizes a 445-day absence exception: a person domiciled in Idaho may be treated as a nonresident if they are outside Idaho for at least 445 days during a consecutive 15-month period (certain restrictions apply).

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/
Statutory authority: Idaho Code § 63-3013 — https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3013/

What Income Is Taxable in Idaho

Fully Taxable Income

The following income types are subject to Idaho income tax for residents (and for nonresidents, to the extent derived from Idaho sources):

  • Wages, salaries, tips, and other employee compensation
  • Self-employment income
  • Business income (sole proprietorship, partnership, S corporation pass-through)
  • Interest and dividend income
  • Capital gains (see special rules below)
  • Rental income
  • 401(k) and traditional IRA distributions
  • Pension income (subject to partial deduction — see Retirees section)
  • Gambling winnings (Idaho lottery prizes under $600 per prize are excluded)
  • Alimony received under pre-2019 divorce agreements (federal rules apply)

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


Social Security Benefits

Idaho does not tax Social Security benefits. Social Security benefits — including the taxable portion reported on your federal return — are exempt from Idaho income tax.

Railroad Retirement benefits may be treated separately. Payments from the Railroad Retirement Board that constitute Social Security equivalents are also exempt; non-equivalent payments may be taxable.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-seniors-and-retirees/


Capital Gains

Idaho taxes capital gains at the standard 5.3% income tax rate. However, Idaho provides a capital gains deduction for certain qualifying gains:

  • 60% deduction on net capital gains from the sale of Idaho real property held for more than 12 months (under certain conditions)
  • Gains from the sale of certain Idaho businesses may also qualify

The specifics of the capital gains deduction are complex. See the official guidance at:
https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/capital-gains/

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/capital-gains/


Income Not Taxable in Idaho

The following income types are exempt from Idaho income tax:

  • Social Security benefits (all amounts, including federally taxable portion)
  • U.S. government interest obligations (to the extent exempt under federal law)
  • Idaho lottery winnings of less than $600 per prize
  • Active-duty military pay earned outside of Idaho for 120 or more consecutive days (Idaho residents on qualifying active duty outside Idaho)
  • Income earned on a federally recognized Indian reservation by an enrolled tribal member who lives on the reservation
  • Railroad Retirement Act payments classified as Social Security equivalents
  • Workers’ compensation benefits

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-seniors-and-retirees/
Source (military pay): https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/


Standard Deduction and Exemptions

Standard Deduction (Tax Year 2025)

Idaho conforms to the federal IRC standard deduction. Following enactment of House Bill 559 in February 2026, Idaho adopts the enhanced federal standard deduction amounts provided under the One Big Beautiful Bill Act (OBBBA) for Tax Year 2025.

The Idaho State Tax Commission will automatically apply the larger standard deduction to taxpayers taking the standard deduction on 2025 returns.

Note: Because Idaho’s conformity to the OBBBA was enacted in February 2026 — after the start of the 2025 filing season — taxpayers who filed early (before the conformity bill was signed) may need to file an amended return to claim the larger deduction. The Tax Commission has stated it will provide details on how to claim these deductions.

For reference: Idaho allows taxpayers to take the standard deduction on their Idaho return even if they itemized on their federal return.

Source: https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/


Personal Exemptions

Idaho does not offer personal exemptions. Idaho conforms to the federal IRC, which eliminated personal exemptions beginning with Tax Year 2018 under the Tax Cuts and Jobs Act.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-noncitizens/


Itemized Deductions

If itemizing instead of taking the standard deduction, Idaho allows deductions for:

  • Qualified mortgage interest
  • Charitable contributions
  • Real estate taxes paid
  • Medical expenses exceeding 7.5% of adjusted gross income

Idaho does not allow a deduction for state and local income taxes (SALT) paid — these must be added back on the Idaho return even if deducted federally.

Idaho law permits taxpayers to take the standard deduction on their Idaho return regardless of what they did on their federal return.

Source: Idaho Code § 63-3022 — https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/


Idaho-Specific Deductions (Subtractions)

In addition to the standard or itemized deduction, Idaho allows the following specific income subtractions:

  • Retirement Benefits Deduction: A partial deduction for qualifying pensions (PERSI, military retirement for disabled or older recipients, federal civil service pensions). Age and disability requirements apply. See https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-retirement-benefits-deduction/
  • Health Insurance Deduction: Self-employed individuals may deduct health insurance premiums
  • IDeal College Savings Program Deduction: Contributions to Idaho’s 529 plan (up to $6,000 single / $12,000 married per year for contributions to the Idaho IDeal program)
  • First-Time Homebuyers Deduction: Contributions to a qualifying Idaho first-time homebuyer savings account (up to $15,000 single / $30,000 married)
  • Medical Savings Account Deduction: Contributions to a qualifying Idaho medical savings account
  • Adoption Expenses: Qualifying adoption expenses may be deductible
  • Active-duty military pay outside Idaho: For Idaho residents on continuous active duty outside Idaho for 120 or more days

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/

Idaho Income Tax Credits

1. Idaho Grocery Credit

Idaho’s most widely claimed credit provides a refundable credit for qualifying Idaho residents to offset some of the sales tax paid on food purchases.

  • Resident credit: $120 per person (taxpayer and each dependent)
  • For Idahoans age 65 or older: $140 per person
  • The credit is refundable — even taxpayers who owe no income tax can receive the credit as a refund
  • Non-residents do not qualify

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-grocery-credit/


2. Parental Choice Tax Credit

Idaho’s Parental Choice Tax Credit is a new program providing tax credits for qualifying educational expenses at private schools.

  • Available to qualifying Idaho families for private school tuition and related expenses
  • The credit is applied against Idaho income tax
  • Administered through the MySchoolChoice program (application required)

Source: https://myschoolchoice.idaho.gov/
Tax Commission guidance: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/parental-choice-tax-credit-and-advance-payment/


3. Educational Charities Credit

A nonrefundable credit for donations made to qualifying Idaho educational charities.

  • Credit equals 50% of donation (up to credit limits)
  • Qualifying charities include certain educational organizations

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/donations-to-educational-charities/


4. Youth and Rehabilitation Charities Credit

A nonrefundable credit for donations to qualifying Idaho youth and rehabilitation organizations.

  • Credit equals 50% of donation (up to credit limits)

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/tax-credit-for-donations-to-youth-and-rehabilitation-charities/


5. Credit for Taxes Paid to Other States

Idaho residents who pay income tax to another state on income also taxed by Idaho may claim a credit for taxes paid to other states. This prevents double taxation on the same income.

  • Claimed on Idaho Form 39R (residents) or Form 39NR (part-year residents/nonresidents)
  • The credit cannot exceed the Idaho tax attributable to the double-taxed income

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/forms/


6. Dependent Care / Family Member Credit

Idaho provides a credit for taxpayers who maintain a home for certain elderly or disabled family members.

  • $100 per qualifying family member (maximum $300 per year)
  • The family member must be age 65 or older, or developmentally disabled, and must be provided more than half their support by the taxpayer

Source: Idaho Form 39R instructions — https://tax.idaho.gov/document-mngr/forms_EFO00088/


Filing Deadlines

Regular Deadline

April 15, 2026 — for Tax Year 2025 returns

Extension Deadline

October 15, 2026 — with a valid filing extension

To receive an automatic 6-month extension:

  • Pay at least 80% of the estimated total tax owed for 2025, OR
  • Pay 100% of the total tax reported on your 2024 Idaho income tax return (if you filed one)
  • Payment must be made by April 15, 2026, using Idaho Form 51 (Estimated Payment of Individual Income Tax)

Important: An extension grants additional time to file — it does not extend the deadline to pay tax owed. Interest accrues on any unpaid balance after April 15, 2026.

2025 Special Note: Because Idaho’s conformity bill (HB 559) was signed in February 2026, some taxpayers may wish to wait before filing to ensure updated forms and systems reflect the new conformity deductions. The Tax Commission recommends that taxpayers uncertain about the timing use the extension option by making a sufficient payment by April 15.

Extension form: Idaho Form 51 — Estimated Payment of Individual Income Tax
https://tax.idaho.gov/document-mngr/forms_EFO00092/

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/filing-and-paying/


Estimated Tax Payments

Idaho does not require estimated tax payments for individuals. However, you may voluntarily make payments at any time to avoid a balance due at filing.

If you do make estimated payments:

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/filing-and-paying/


Combat Zone Extension

Active duty military members serving in a combat zone receive an automatic extension of at least 180 days after their last day in the combat zone to file and pay Idaho income taxes. Interest and penalties do not accrue during the deferral period if tax is paid in full by the end of the deferral period.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/

Filing Options

Online Filing (E-File)

Electronic filing is available through:

Note: Idaho’s Taxpayer Access Point (TAP) does not support electronic filing of income tax returns. Income tax returns must be filed through approved tax software or by paper.

Paper Filing

Download current-year forms and mail to the Idaho State Tax Commission:

Mailing addresses:

  • Returns with payment: Idaho State Tax Commission, PO Box 83784, Boise ID 83707-3784
  • Returns without payment / refund returns: Idaho State Tax Commission, PO Box 56, Boise ID 83756-0056
  • Amended returns: Idaho State Tax Commission, PO Box 56, Boise ID 83756-0056

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/filing-and-paying/
Mailing addresses: https://tax.idaho.gov/contact-us/mailing-addresses/


Local Income Taxes

Idaho does not permit local income taxes. Only state-level income tax applies. No city, county, or other local jurisdiction in Idaho levies a local income tax.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in Idaho solely due to military orders do not become Idaho residents for tax purposes. Under the Servicemembers Civil Relief Act (SCRA):

  • Military members stationed in Idaho pay income tax to their state of legal residence (domicile), not Idaho
  • Active duty military pay received by a nonresident stationed in Idaho is not subject to Idaho income tax
  • Idaho does not tax military wages of service members stationed in Idaho whose domicile is another state

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/
Statutory authority: Idaho Code § 63-3013; SCRA, 50 U.S.C. § 4001


Military Spouses Residency Relief Act (MSRRA)

Spouses of active duty military members may be protected from Idaho income tax on wages earned in Idaho under the Military Spouses Residency Relief Act (MSRRA):

  • The spouse is in Idaho solely to be with the servicemember
  • The servicemember is in Idaho under military orders
  • The spouse maintains domicile in another state

Qualifying spouses can claim an exemption from Idaho withholding by completing Form ID-MS1 (Employee’s Idaho Military Spouse Withholding Exemption Certificate) and submitting it to their Idaho employer.

Form ID-MS1: https://tax.idaho.gov/document-mngr/forms_EFO00226/
Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/


Idaho Residents on Active Duty

Idaho residents stationed in Idaho: Military income is subject to Idaho income tax.

Idaho residents stationed outside Idaho: Active duty military pay earned outside of Idaho is exempt from Idaho income tax if the service member is on continuous active duty outside Idaho for 120 or more consecutive days.

This exemption applies only to active-duty military pay. Other Idaho-source income (investments, rental property, etc.) remains taxable.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/
Form 39R, Line 11: https://tax.idaho.gov/document-mngr/forms_EFO00088/


Military Retirement Pay

Idaho does not fully exempt military retirement pay from income tax. However, qualifying retired service members may be eligible for Idaho’s Retirement Benefits Deduction.

Military retirement pay may qualify for the Idaho Retirement Benefits Deduction if the pensioner meets any of these conditions:

  • The pensioner is classified as disabled, OR
  • The pensioner is age 65 or older, OR
  • The pensioner is age 62 or older and classified as disabled

Even qualifying individuals generally cannot deduct the full amount. The deduction is limited to the amount recalculated annually by the state.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-retirement-benefits-deduction/


Combat Zone

Active duty military members serving in a designated combat zone receive special Idaho tax treatment:

  • Filing deadlines extended for at least 180 days after the last day in the combat zone
  • Enlisted members and warrant officers: military pay received for any month served in a combat zone is excluded from taxable income
  • Commissioned officers: the monthly exclusion is capped at the highest enlisted pay, plus hostile fire/imminent danger pay

On paper returns, write “COMBAT ZONE” and the date of deployment in red at the top of the return.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/

Retirees

Social Security Benefits

Idaho does not tax Social Security benefits. All Social Security benefits — including the portion that may be taxable at the federal level — are exempt from Idaho income tax. This includes Social Security equivalent portions of Railroad Retirement benefits.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-seniors-and-retirees/


Pension Income

By default, pensions, annuities, and retirement account distributions received by Idaho residents are subject to Idaho income tax. However, Idaho provides a Retirement Benefits Deduction for certain qualifying pensions.

Qualifying pension sources for the Idaho Retirement Benefits Deduction:

For Idaho public pensions, qualifying sources include:

  • PERSI (Public Employee Retirement System of Idaho) benefits
  • Benefits from the Firefighters Retirement Fund (FRF) administered by PERSI
  • Benefits for retired Idaho city police officers under certain legacy funds

For federal pensions, qualifying sources include pensions received:

  • Under the Civil Service Retirement System (CSRS) — not the Federal Employees Retirement System (FERS)
  • Under the Foreign Service Retirement and Disability System (FSRDS)
  • Under the CIA Retirement and Disability System

For military retirement pay, qualifying conditions are age- or disability-based (see Military section above).

Eligibility requirements for federal/military pensions:

  • Must be age 65 or older, OR age 62 or older and classified as disabled
  • Must be filing jointly if married (for federal pension deduction)

Even if you qualify, the deduction is limited and recalculated annually. The deduction cannot exceed the pension amount received.

Surviving spouses: May qualify for the deduction if they receive the deceased spouse’s qualifying pension, have not remarried, and meet the age or disability requirements.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-retirement-benefits-deduction/


401(k), IRA, and Roth IRA Distributions

Traditional 401(k) and traditional IRA distributions are subject to Idaho income tax as ordinary income. Idaho conforms to federal rules for these account types.

Roth IRA qualified distributions are generally not subject to federal or Idaho income tax, following federal IRC conformity.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-seniors-and-retirees/


Grocery Credit for Retirees

Retirees who qualify for the Idaho Grocery Credit receive a higher credit amount:

  • $140 per qualifying member age 65 or older (vs. $120 for younger recipients)
  • The credit is refundable — retirees who owe no Idaho income tax can still receive it
  • Even retirees who do not have to file an Idaho income tax return may file solely to claim this credit

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-grocery-credit/


Property Tax Reduction Program for Seniors

Idaho offers a Property Tax Reduction program for qualifying homeowners age 65 or older (or disabled/surviving spouses). While not an income tax credit, this program provides meaningful property tax relief based on income levels.

Source: https://tax.idaho.gov/taxes/property/homeowners/


Enhanced Senior Deduction (2025 Conformity)

Under House Bill 559 (signed February 2026), Idaho adopted the enhanced senior deduction from the federal OBBBA for Tax Year 2025. This additional deduction is available to taxpayers age 65 and older. The Idaho State Tax Commission is updating its forms and systems to reflect this deduction.

Source: https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/

Students

College students attending school in Idaho do not automatically become Idaho residents for tax purposes.

You remain a non-resident student if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Idaho is temporary for educational purposes
  • You intend to return to your home state after completing your education

Tax obligations as a non-resident student:

  • You owe Idaho income tax only on Idaho-source income (e.g., wages from a job in Idaho)
  • You do not owe Idaho income tax on income earned outside Idaho

Establishing Idaho residency as a student: Students who take active steps to establish Idaho as their permanent home may become Idaho residents:

  • Registering to vote in Idaho
  • Obtaining an Idaho driver’s license
  • Changing domicile with intent to remain in Idaho beyond educational purposes

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/guidance-for-specific-circumstances-of-residency/

Part-Year Residents

If you moved to or from Idaho during 2025, you file as a part-year resident using Form 43.

Income Allocation

Part-year residents pay Idaho income tax on:

  • All income received while living as an Idaho resident, plus
  • Idaho-source income received while a nonresident (e.g., rental income from Idaho property, wages from Idaho employment after moving away)

Part-year residents do not pay Idaho income tax on income received while a resident of another state from non-Idaho sources.

Moving TO Idaho

  • Determine the date you established Idaho domicile (the day you moved with intent to make Idaho your permanent home)
  • Report all income from that date forward on your Idaho return
  • File a non-resident or part-year return in your former state for income earned before you moved

Moving FROM Idaho

  • Determine the date your Idaho residency ended (the day you established domicile in your new state)
  • Report all income through that date on your Idaho return
  • File a non-resident or part-year resident return in your new state for income earned after moving

Form: Form 43 — Idaho Part-Year Resident & Nonresident Income Tax Return
https://tax.idaho.gov/document-mngr/forms_EFO00091/

Statutory authority: Idaho Code § 63-3013A — https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3013A/

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/guidance-for-specific-circumstances-of-residency/

Common Tax Filing Situations

Situation: “I worked in Idaho briefly — do I owe Idaho income tax?”

State law: Non-residents who earn more than $2,500 in gross income from Idaho sources must file an Idaho income tax return (Form 43) and pay tax on that income. This includes wages earned while physically working in Idaho.

Exception: Non-resident employees earning less than $1,000 in wages from a single Idaho employer in a calendar year are not subject to Idaho withholding.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


Situation: “My employer is in another state, so I don’t owe Idaho tax”

State law: Idaho residents owe Idaho income tax on all income regardless of where the employer is located. If you live in Idaho and work remotely for a company in California, Washington, or any other state, all your wages are taxable in Idaho. Employer location does not determine tax obligation for Idaho residents.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/


Situation: “I work remotely full-time, so I don’t owe tax anywhere”

Tax law principle: All income is taxable in at least one jurisdiction. Remote work does not exempt income from taxation. As an Idaho resident, you owe Idaho income tax on all your income, regardless of where your employer is located or where you physically work.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/


Situation: “I moved to Idaho mid-year — do I owe Idaho tax on income I earned before moving?”

State law: Part-year residents owe Idaho income tax only on income earned while an Idaho resident, plus any Idaho-source income received after leaving Idaho. Income earned before establishing Idaho residency is generally not taxable in Idaho, except to the extent it comes from Idaho sources.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/guidance-for-specific-circumstances-of-residency/


Situation: “I was absent from Idaho for most of the year — am I still a resident?”

State law: Idaho allows a 445-day absence exception. An Idaho-domiciled individual who is outside Idaho for at least 445 days during a consecutive 15-month period may be treated as a nonresident during that period.

This exception is not available if:

  • You maintain a permanent Idaho home where your spouse or minor children live for more than 60 days during the calendar year
  • You claim Idaho as your tax home for federal “away from home” expense deductions
  • You hold certain elected or appointed U.S. government offices

After satisfying the 445-day test, if you return to Idaho for more than 60 days in any calendar year, you are again treated as an Idaho resident.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/guidance-for-specific-circumstances-of-residency/


Situation: “I’m a Native American tribal member — do I owe Idaho income tax?”

Income earned by a nonresident who is a registered member of a federally recognized American Indian tribe is not subject to Idaho taxes when the member works on an Idaho Indian reservation and lives on a reservation. Income earned outside a reservation is subject to Idaho income tax.

Source: https://tax.idaho.gov/taxes/tax-pros/tax-update/tax-update-for-summer-2024/

Idaho as a Community Property State

Idaho is a community property state. This means that income earned by either spouse during the marriage is generally considered equally owned by both spouses (community property), with each spouse owning a one-half interest.

Key implications:

  • When one spouse is an Idaho resident and the other is not, each spouse must report one-half of the community income from Idaho sources
  • Both spouses must use the same filing status for Idaho as they use for federal purposes
  • Idaho community property rules can create complex filing situations when spouses are domiciled in different states

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/community-property/

Special Considerations for Remote Workers and Multi-State Taxation

Living in Idaho, Working for an Out-of-State Employer

As an Idaho resident, you owe Idaho income tax on all income from all sources, regardless of where your employer is located.

What this means:

  • Employer location does not determine your Idaho tax obligation
  • Income from employers in Oregon, California, Washington, Texas, or any other state is taxable in Idaho if you are an Idaho resident
  • Your Idaho employer (or your out-of-state employer, if properly set up) should withhold Idaho income tax

Example: An Idaho resident working remotely from Boise for a Seattle-based company owes Idaho income tax on all wages earned. The fact that Washington has no income tax does not eliminate the Idaho tax obligation.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/


Working in Idaho While Living in Another State

Non-residents who physically perform work in Idaho owe Idaho income tax on the income earned from that Idaho work.

Physical Presence Rule: Income is sourced to Idaho based on where work is physically performed. For employees working in both Idaho and other states, income is allocated based on the portion of services performed in Idaho.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/


⚠️ Interstate Tax Risk Indicator

Remote workers with Idaho connections commonly encounter complications with the following states:

Multi-State Risk Factors for Idaho Residents
State Risk Factor
California Aggressive residency audits; former California residents who relocate to Idaho may face scrutiny
New York Applies the "convenience of the employer" rule, potentially taxing remote Idaho workers employed by NY firms
Pennsylvania 200+ local income tax jurisdictions; complex multi-state filing
Oregon Borders Idaho; many workers live on one side and work on the other
Washington No income tax on wages; Idaho residents working for WA employers owe Idaho tax on all income

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/ and IRS Publication 505


Convenience of the Employer Rule

Idaho does NOT apply the “convenience of the employer” rule. Non-residents are taxed by Idaho only on income from work physically performed in Idaho.

If you live outside Idaho but work remotely for an Idaho-based employer, Idaho taxes only the income from work days physically performed in Idaho — not the days worked outside Idaho from your home state.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/idaho-source-income/


Reciprocal Agreements

Idaho does NOT have reciprocal income tax agreements with any other state.

Without reciprocity, employees who live in one state and work in another may owe income tax in both states. The employee’s resident state generally provides a credit for taxes paid to the work state to prevent double taxation.

What this means for Idaho residents working in neighboring states:

  • Idaho residents who work in Oregon, Nevada, Utah, Wyoming, Montana, or Washington must file non-resident returns in those states for income earned there (except Washington and Nevada, which have no income tax)
  • Idaho residents claim a credit on their Idaho return for taxes paid to other states (Form 39R)

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/


Multi-State Tax Filing Strategy

When earning income in multiple states as an Idaho resident:

  1. File a resident return in Idaho (Form 40) reporting all income from all sources
  2. File non-resident returns in each state where you earned income (following that state’s rules)
  3. Claim a credit on your Idaho return (Form 39R, Part D) for income taxes paid to other states on income also taxed by Idaho
  4. The credit prevents double taxation but requires careful documentation of income allocation

Key forms:

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/forms/

Tax Residency vs. Domicile in Idaho

Understanding the difference between residency and domicile is essential for determining Idaho tax obligations — especially for people who split time between Idaho and other states.

Domicile Defined

Domicile is your permanent legal home — the place you intend to return to and consider “home” indefinitely.

Key characteristics:

  • You can have only one domicile at a time
  • Domicile continues until you establish a new domicile elsewhere with genuine intent to remain
  • Temporary absences do not change domicile
  • Idaho generally defines domicile as the place you “think of as your permanent home” or where you have temporarily moved outside of Idaho with intent to return

Factors establishing Idaho domicile:

  • Maintaining your primary residence in Idaho
  • Voter registration in Idaho
  • Idaho driver’s license
  • Idaho homestead exemption claim
  • Family residing in Idaho
  • Idaho bank accounts and financial ties
  • Membership in Idaho organizations
  • Stated intent in legal documents (wills, trusts)

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/domicile/
Statutory authority: Idaho Code § 63-3013 — https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3013/


Residency Defined

Residency for Idaho tax purposes can be established through physical presence even without changing domicile.

Idaho applies a physical presence + permanent home test for residency:

  • You maintain a home in Idaho for the entire tax year, AND
  • You spend more than 270 days in Idaho during the year

A person who meets both conditions is treated as an Idaho resident even if their domicile remains in another state.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/

Critical Differences
Factor Domicile Tax Residency
Number allowed One at a time Can be resident of multiple states under different tests
Based on Intent to make it permanent home Physical presence + home in Idaho (270+ days)
Changes when New permanent home established with intent Stop meeting the physical presence test
Tax impact Taxed as Idaho resident on worldwide income Taxed as Idaho resident on worldwide income

Common Scenarios

Scenario 1: Snowbird (Idaho winter / Arizona winter)

  • Domicile: Idaho (permanent home, family, voter registration)
  • Winter presence: Arizona (4 months/year)
  • Tax result: Idaho resident — spends more than 270 days in Idaho; Arizona winters do not change Idaho domicile

Scenario 2: Extended work assignment in another state

  • Domicile: Idaho (permanent home)
  • Work assignment: Oregon (9 months, rented apartment)
  • Tax result: May qualify as an Idaho nonresident under the 445-day absence exception — but only if the assignment lasts through a qualifying 15-month period; family remaining in Idaho home may affect the exception

Scenario 3: Military family

  • Service member: Domicile in Texas, stationed at Mountain Home AFB in Idaho
  • Spouse: Same domicile as service member (Texas), present in Idaho due to military orders
  • Tax result: Service member is a nonresident; military pay not subject to Idaho income tax. Spouse may qualify for MSRRA exemption if maintaining Texas domicile.

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/guidance-for-specific-circumstances-of-residency/

Documentation Commonly Requested in Residency Audits

Idaho tax authorities may audit residency determinations. The following documentation types are commonly relevant:

Primary Residency Evidence
Document Type What It Shows
Driver's License State of legal residence
Voter Registration Where you exercise voting rights
Vehicle Registration Where vehicles are titled
Professional Licenses State of professional activities
Homestead Exemption Filing Primary residence claim
Physical Presence Documentation
Document Type What It Shows
Day-Count Logs Physical location by day
Travel Records (flights, receipts) Interstate travel patterns
Credit/Debit Card Statements Geographic spending patterns
Cell Phone Records Location data
E-ZPass / Toll Records State line crossings
Property and Financial Ties
Document Type What It Shows
Property Ownership Records Real estate holdings
Utility Bills Physical occupancy
Home/Rental Lease Residence location
Bank Statements Financial institution location
Employment and Intent
Document Type What It Shows
W-2 Forms Employer location and wages
Employment Contract / Remote Work Agreement Work location
Will / Estate Documents Stated domicile for estate purposes
Prior Year Tax Returns Prior residency claims
Insurance Policies Address on file

Common Idaho audit triggers:

  • Claiming non-residency while maintaining Idaho driver’s license or voter registration
  • Owning Idaho property while filing as non-resident
  • Spouse or children remaining in Idaho while taxpayer claims other state as domicile
  • Day count near the 270-day or 445-day thresholds

Burden of Proof: In residency disputes, the burden typically falls on the taxpayer to prove non-residency or domicile elsewhere.

Source: https://tax.idaho.gov/online-services/compliance-audits/
Note: This section provides factual information about documentation. It does not constitute legal or tax advice.

Penalties and Interest

Late Filing Penalty

Idaho imposes a penalty of 5% per month (or fraction of a month) on unpaid tax, up to a maximum of 25%, if a return is filed after the due date without a valid extension.

Source: Idaho Code § 63-3046 — https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/


Late Payment Penalty

A 0.5% per month penalty applies to unpaid tax if a return is filed timely but the tax is not paid by the due date, up to a maximum of 25%. (Combined penalties cannot exceed 25% total.)

Source: Idaho Code § 63-3046


Interest on Unpaid Tax

Interest accrues on unpaid Idaho income tax from the original due date until the tax is paid. The interest rate is established annually.

Current interest rate: Check the Idaho State Tax Commission for the current rate:
https://tax.idaho.gov/taxes/income-tax/individual-income/filing-and-paying/


Avoiding Penalties — Extension Safe Harbor

To avoid late-filing penalties, taxpayers who cannot file by April 15 should obtain a valid extension by ensuring sufficient payment has been made by April 15, 2026:

  • Pay at least 80% of the estimated total 2025 Idaho income tax, OR
  • Pay 100% of the total 2024 Idaho income tax (if a 2024 return was filed)

Source: https://tax.idaho.gov/taxes/income-tax/individual-income/filing-and-paying/

Forms and Publications

Primary Tax Return Forms

Resident return:

Part-year resident / nonresident return:

Withholding and Estimated Payment Forms


All Current Individual Income Tax Forms

https://tax.idaho.gov/taxes/income-tax/individual-income/forms/

Information Verification Log

Idaho Income Tax – Source Verification Log
Information Type Source Last Verified
Tax rate and rate schedule https://tax.idaho.gov/taxes/income-tax/individual-income/individual-income-tax-rate-schedule/ February 22, 2026
2025 rate change (5.695% → 5.3%) https://tax.idaho.gov/pressrelease/withholding-tables-updated-for-2025/ February 22, 2026
Standard deduction / HB 559 conformity https://tax.idaho.gov/pressrelease/update-on-filing-2025-idaho-income-taxes-now-that-conformity-is-law/ February 22, 2026
Filing thresholds (residents) https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/ February 22, 2026
Filing thresholds (part-year / nonresident) https://tax.idaho.gov/taxes/income-tax/individual-income/online-guide/ February 22, 2026
Statutory authority https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/ February 22, 2026
Tax credits and deductions https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/ February 22, 2026
Military provisions https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/military/ February 22, 2026
Retirement income treatment https://tax.idaho.gov/taxes/income-tax/individual-income/specific-guidance-for-individual-income-tax/specific-guidance-for-individuals-seniors-and-retirees/ February 22, 2026
Local income tax status https://tax.idaho.gov/taxes/income-tax/individual-income/ February 22, 2026
Reciprocity agreements https://tax.idaho.gov/taxes/income-tax/individual-income/ February 22, 2026
Forms and publications https://tax.idaho.gov/taxes/income-tax/individual-income/forms/ February 22, 2026

Where to Check for Updates

Current Tax Rate Schedules:
https://tax.idaho.gov/taxes/income-tax/individual-income/individual-income-tax-rate-schedule/
Updated annually, typically in December/January.

Forms Library:
https://tax.idaho.gov/taxes/income-tax/individual-income/forms/

News and Press Releases (legislative changes, conformity updates):
https://tax.idaho.gov/pressrelease/

Administrative Guidance:
https://tax.idaho.gov/governance/agency-guidance/

Administrative Rules (IDAPA 35.01.01):
http://adminrules.idaho.gov/rules/current/35/350101.pdf

Conformity to Federal IRC:
https://tax.idaho.gov/governance/statutes/irc/

Idaho Legislature — Tax Statutes (Title 63, Chapter 30):
https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/

Email subscription for news:
https://tax.idaho.gov/about-us/stay-informed/

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates — especially regarding the 2025 conformity changes still being implemented — always consult the official Idaho State Tax Commission website.

Official Idaho Income Tax Resources

All information in this guide is compiled exclusively from official government sources.

Idaho State Tax Commission

Idaho Tax Code and Regulations

Contact Information

Phone (Boise area): (208) 334-7660
Phone (Toll Free): (800) 972-7660
Hours: Monday – Friday, 8:00 a.m. – 5:00 p.m. MST (7:00 a.m. – 4:00 p.m. PST)
(Call center opens at 9:30 a.m. MST on the 2nd Wednesday of each month)

Office Locations and Hours: https://tax.idaho.gov/contact-us/visit-us/
Mailing Addresses: https://tax.idaho.gov/contact-us/mailing-addresses/
Contact Form: https://tax.idaho.gov/contact-us/

Free Tax Assistance

VITA (Volunteer Income Tax Assistance):
Find locations: https://www.irs.gov/individuals/free-tax-return-preparation-for-qualifying-taxpayers

TCE (Tax Counseling for the Elderly):
Find locations: https://www.irs.gov/individuals/tax-counseling-for-the-elderly

AARP Tax-Aide:
Find locations: https://www.aarp.org/money/taxes/aarp_taxaide/

Tax Glossary

Idaho Taxable Income: Federal adjusted gross income, modified by Idaho additions and subtractions, minus the standard or itemized deduction. The 5.3% rate applies to Idaho taxable income above the zero-rate threshold.

Flat Rate: Idaho uses a single tax rate (5.3%) applied to all income above the exemption threshold, rather than multiple rates that increase with income.

Zero-Rate Threshold: The amount of Idaho taxable income that is not subject to tax ($4,811 for single filers; $9,622 for married filers in 2025).

Resident: A person who maintains a home in Idaho for the entire year and spends more than 270 days in Idaho, OR who is domiciled in Idaho.

Domicile: Your permanent legal home — the place you intend to return to indefinitely.

Part-Year Resident: A person who moved to or from Idaho during the tax year.

Non-Resident: A person who does not meet Idaho’s residency requirements but has Idaho-source income.

Idaho Source Income: Income from transactions or activities that take place in Idaho, or income from property located in Idaho.

Grocery Credit: Idaho’s refundable credit designed to offset sales tax paid on food purchases ($120 per person; $140 for persons age 65 or older).

Conformity: Idaho’s alignment with the federal Internal Revenue Code (IRC). For Tax Year 2025, Idaho conformed to the One Big Beautiful Bill Act via House Bill 559 (February 2026), adopting the enhanced federal standard deduction and other new deductions.

445-Day Absence Exception: An Idaho law that allows domiciled Idahoans who are physically absent from Idaho for at least 445 days in a 15-month period to be treated as nonresidents during that period.

Standard Deduction: A fixed dollar amount subtracted from income before calculating tax. Idaho follows the federal standard deduction (updated for 2025 by the OBBBA conformity).

Community Property: Idaho is a community property state, meaning income earned during marriage is generally owned equally by both spouses.

Update History

February 2026 — Initial Publication

  • Published comprehensive Idaho income tax guide for Tax Year 2025
  • All sections verified from official Idaho State Tax Commission sources
  • Includes 2025 rate reduction to 5.3% (down from 5.695% in 2024)
  • Includes 2025 conformity update (HB 559 / OBBBA) — note: Tax Commission still updating forms and systems as of February 22, 2026

Verification Schedule:

  • Annual Update: January (new tax rates and thresholds)
  • Mid-Year Review: June (legislative changes)
  • Continuous Monitoring: Emergency tax legislation, disaster relief, conformity updates
  • Source Link Check: Quarterly (all tax.idaho.gov URLs verified functional)

Last comprehensive update: February 22, 2026
Next scheduled review: January 2027 (for Tax Year 2026)

Others

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current