Key Tax Facts: Idaho
- Flat 5.3% rate for tax year 2025, reduced from 5.695% in 2024
- Social Security benefits are fully taxable by Idaho
- Grocery credit offsets sales tax paid on food
- Military retirement pay is partially exempt
Estimate Your 2026 Federal and Idaho State Income Tax
Idaho State Income Tax Overview
Idaho has a flat state income tax rate of 5.3% for tax year 2025, reduced from 5.695% in 2024, which itself came down from 5.8%. Idaho moved to a flat tax in 2023, replacing a graduated system. The state conforms to the federal standard deduction, $15,000 for single filers and $30,000 for married couples filing jointly for 2025. Idaho does not tax Social Security benefits, and it offers a deduction for certain retirement income for filers 65 and older, or 62 and older if disabled. Idaho also allows a grocery tax credit to offset sales tax paid on food, which residents claim on their state return.
What Is Different About Idaho's Income Tax
Deductions and exemptions
Idaho uses the federal standard deduction amounts and follows federal itemized deductions with state tax paid removed. The 2025 flat rate of 5.3% applies to taxable income above a small exemption threshold that indexes annually.
Credits worth knowing
Idaho offers a child tax credit of $205 per qualifying child, a grocery credit of $120 per person to offset sales tax on food, a credit for taxes paid to other states, and credits for donations to Idaho educational institutions and youth facilities.
Retirement, capital gains, and other income
Social Security is exempt. Certain retirement benefits are partially exempt for filers 65 and older, including Idaho public employee, firefighter, and police pensions, and military retirement pay. Private pensions, 401(k), and IRA withdrawals are taxed at the flat rate. Capital gains get a 60% deduction for gains on qualifying Idaho property held at least 12 months.
Rules summarized from the Idaho State Tax Commission guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Idaho Income Tax Rate (2026) projected
Idaho uses a flat income tax rate -- the same percentage applies to all taxable income regardless of how much you earn.
Source: Idaho State Tax Commission
What a Idaho Resident Actually Pays: A Worked Example
| Taxable Income | $65,000.00 |
| Idaho Flat Rate | 5.3% |
| Estimated State Tax | $3445.00 |
| Effective Rate | 5.3% |
Where Idaho Stands Among the 50 States
Idaho's top rate of 5.3% ranks #20 of the 41 states that tax wages. The median top rate across those 41 states is 5.2%, so Idaho is above the middle of the pack. It is one of 14 states with a single flat rate, so every taxable dollar is taxed at 5.3% and the effective rate never climbs with income the way it does in the 27 graduated-rate states.
On sales tax the picture is similar: Idaho's combined state and average local rate of 6.02% ranks #37 of 50, against a national median of 7.00%.
Idaho State Tax at Five Income Levels (2026, single filer)
| Taxable income | Idaho tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $2,120 | 5.30% | 5.3% |
| $65,000 | $3,445 | 5.30% | 5.3% |
| $100,000 | $5,300 | 5.30% | 5.3% |
| $150,000 | $7,950 | 5.30% | 5.3% |
| $250,000 | $13,250 | 5.30% | 5.3% |
Brackets applied directly to the taxable-income figure shown, before Idaho-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Idaho vs. Its Neighbors on $75,000 of Taxable Income
A Idaho resident with $75,000 of taxable income pays about $3,975 in state income tax. Of Idaho's 6 neighboring states, 4 would tax that income less and 2 would tax it more.
Frequently Asked Questions -- Idaho Income Tax
Does Idaho have a state income tax?
Yes. Idaho imposes a state income tax with a flat rate of 5.3%. This is separate from your federal income tax obligation.
What is the Idaho income tax rate for 2026?
Idaho uses a flat income tax rate of 5.3% on all taxable income, regardless of income level or filing status.
Do I have to file a Idaho state tax return?
Most full-year Idaho residents with income above the state filing threshold must file a state return. Check the Idaho State Tax Commission for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Idaho figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Idaho-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Idaho State Tax Commission or a tax professional before filing.
How does Idaho compare with nearby states?
On $75,000 of taxable income, Idaho collects about $3,975. Nevada collects $0, Washington collects $0, Wyoming collects $0, Utah collects $3,375, Montana collects $4,172, Oregon collects $6,254. See the comparison table above.
Where does Idaho rank on state income tax?
Idaho's top rate of 5.3% ranks #20 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 6.02% ranks #37 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Idaho rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Idaho tax forms?
Official forms, instructions, and filing guidance are available at the Idaho State Tax Commission.
What is the sales tax rate in Idaho?
Idaho's combined state and average local sales tax rate is 6.02%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Idaho 2026 state taxes due?
2026 taxes are generally filed in 2027. The Idaho filing deadline is April 15, 2027, the same as the federal deadline.
Understanding Your Idaho Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Idaho state tax owed to the Idaho State Tax Commission. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 15. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Idaho Bill
Pre-tax retirement contributions reduce your federal and Idaho taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Idaho-specific credits and deductions that don't exist at the federal level are listed at the Idaho State Tax Commission -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Idaho's combined state-plus-average-local sales tax rate is 6.02%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Idaho State Tax Commission or a qualified tax professional for guidance specific to your situation.