Idaho has a state income tax, and it applies to most residents and workers
Idaho charges a state income tax on wages, self-employment income, interest, dividends, and other earnings. The tax rate ranges from 1% to 5.8% depending on your income bracket. If you live in Idaho or work there, you will owe state income tax unless you fall into a narrow category of exemptions.
Idaho's tax brackets change each year. For 2024, the lowest bracket starts at 1% on income under $1,663 for single filers, and the highest bracket of 5.8% applies to income over $7,944. These thresholds are adjusted annually for inflation. Married couples filing jointly have higher bracket thresholds.
Unlike some states, Idaho does not exempt military pay, retirement income, or Social Security from state taxation, though Social Security benefits receive special treatment under federal law that may reduce what you owe.
Key Takeaways
- Idaho's state income tax rate ranges from 1% to 5.8% across six tax brackets, with rates adjusted yearly for inflation.
- You owe Idaho income tax if you are a resident or earn income within the state, regardless of where you live.
- Retirement income, military pay, and most other earnings are taxed at the same rate as wages in Idaho.
- You file Idaho taxes using Form 40 (individual return) or Form 41 (nonresident return) with the Idaho State Tax Commission.
Who has to file an Idaho state tax return
You must file an Idaho return if you are a resident with income above the filing threshold for your filing status. For 2024, a single resident must file if they earned more than $13,850 in gross income. A married couple filing jointly must file if their combined income exceeded $27,700. These thresholds change annually.
Nonresidents who earned income within Idaho must also file, even if they live in another state. This includes people who worked in Idaho for part of the year or had business income from Idaho sources. Nonresidents file Form 41 instead of Form 40.
If your income falls below the threshold, you are not required to file, but you may still want to if you had taxes withheld from your paychecks — filing allows you to claim a refund.
Tax brackets and rates for 2024
Idaho uses a progressive tax system with six brackets. Your tax rate depends on your total income for the year. The brackets are:
| Income Range (Single Filers) | Tax Rate |
|---|---|
| $0 to $1,663 | 1% |
| $1,664 to $6,656 | 3% |
| $6,657 to $11,648 | 4.1% |
| $11,649 to $14,410 | 5.1% |
| $14,411 to $19,402 | 5.3% |
| $19,403 and above | 5.8% |
Married couples filing jointly have different bracket thresholds — each bracket is roughly double the single filer amount. These numbers are adjusted each year by the Idaho State Tax Commission based on inflation. Check the commission's website for current-year brackets before you file.
What income is taxed in Idaho
Idaho taxes most forms of income. This includes wages and salaries, self-employment income, rental income, capital gains, interest, and dividends. If you received a W-2 from an employer, that income is taxed. If you received a 1099 for freelance or contract work, that income is taxed.
Retirement distributions from IRAs and 401(k)s are taxed as ordinary income in Idaho. Pension income is also taxed. Social Security benefits may be taxed depending on your total income, following federal rules — Idaho does not provide an additional exemption.
A few types of income are not taxed: life insurance proceeds, gifts, inheritances, and certain disability payments. Workers' compensation is also exempt. If you are unsure whether a specific type of income is taxable, the Idaho State Tax Commission publishes guidance on its website.
How to file your Idaho state tax return
Idaho residents file Form 40 (Individual Income Tax Return). Nonresidents file Form 41. Both forms are available on the Idaho State Tax Commission website. You can file by mail, electronically through approved tax software, or through the commission's online filing system.
You will need your Social Security number, W-2s or 1099s for all income sources, records of any tax payments or withholdings, and documentation of deductions or credits you plan to claim. The filing deadline is April 15 each year, the same as the federal deadline. If you file late, you may owe penalties and interest.
The Idaho State Tax Commission does not process returns by phone. You can contact them by mail, through their website, or by visiting a regional office in person. Processing times vary, but refunds typically arrive within four to six weeks if you file electronically.
Deductions and credits available in Idaho
Idaho allows a standard deduction or itemized deductions, similar to federal taxes. For 2024, the standard deduction for a single filer is $14,600, and for married filing jointly it is $29,200. These amounts change annually. If your itemized deductions exceed the standard deduction, you can itemize instead.
Idaho also offers several tax credits that reduce the amount of tax you owe. These include a dependent exemption credit, a child and dependent care credit, and an earned income credit for lower-income workers. Some credits are refundable, meaning you can receive money back even if you owe no tax. Others are nonrefundable and can only reduce your tax liability to zero.
Certain retirement income may may have access to for a partial exemption. Military retirement pay and federal civil service retirement pay may be excluded from Idaho taxable income under specific conditions. Check the tax commission's website or Form 40 instructions to see if you may have access to.
Frequently Asked Questions
Do I have to pay Idaho income tax if I work in Idaho but live in another state?
Yes. Idaho taxes income earned within the state regardless of where you live. You file Form 41 (nonresident return) with Idaho and may also owe taxes to your home state. Some states have reciprocal agreements that prevent double taxation, but you will need to check both states' rules or consult a tax professional.
Is Social Security taxed in Idaho?
Social Security benefits may be taxed in Idaho depending on your total income. Idaho follows federal rules for Social Security taxation. If your combined income (wages plus half your Social Security benefits) exceeds certain thresholds, up to 85% of your benefits may be taxable. The thresholds are $25,000 for single filers and $32,000 for married couples filing jointly.
What happens if I don't file an Idaho tax return?
If you owe taxes and do not file, the Idaho State Tax Commission may assess penalties and interest on the unpaid amount. The penalty is typically 5% per month, up to 25%, plus interest at a rate set by the commission. If you filed late but had taxes withheld, you may still receive a refund even if you owe a penalty.
Can I file my Idaho taxes online?
Yes. The Idaho State Tax Commission accepts electronic returns through approved tax software and through its own online filing system. Electronic filing is faster than paper filing and typically results in quicker refunds. You can also file by mail if you prefer.
Do military members stationed in Idaho have to pay state income tax?
Military members stationed in Idaho are generally subject to Idaho income tax on their military pay, unless they are stationed there but maintain a legal residence in another state. Some states have laws that exempt military pay from state taxation, but Idaho does not. Check with your military tax advisor or the Idaho State Tax Commission for your specific situation.