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Idaho Taxes: What You Need to Know
Understanding Idaho’s tax landscape is key for accurate paycheck calculations.
Idaho’s income tax rate for 2025 is 5.3%, a decrease from the prior rate of 5.695%. This flat rate applies to all Idaho taxable income above the filing threshold. Local taxes in Idaho are minimal. Only a few municipalities impose additional levies.
Like all US workers, Idahoans contribute to Social Security and Medicare through FICA taxes. Idaho does not impose additional state-specific insurance taxes.
Pre-tax deductions such as 401(k) contributions and health insurance premiums lower your taxable income. This can reduce your overall tax burden.
New for 2026: Idaho now conforms to several federal deductions under House Bill 559. These include larger standard deduction amounts, an enhanced senior deduction, and deductions for qualified tips from wages, car loan interest, and overtime compensation.
| Tax Type | Rate | Notes |
|---|---|---|
| Idaho State Income Tax | 5.3% | Flat rate; decreased from 5.695% effective January 1, 2025 |
| Federal Income Tax | Varies | Progressive rates from 10% to 37% |
| Social Security Tax | 6.2% | On first $160,200 of earnings |
| Medicare Tax | 1.45% | No income limit; additional 0.9% on earnings over $200,000 |
| State Sales Tax | 6% | Average combined state and local rate: 6.03% |
Idaho’s tax system ranks 9th on the 2026 State Tax Competitiveness Index, reflecting its competitive stance. With no estate or inheritance tax and relatively low property tax, Idaho offers a balanced tax environment for residents and businesses alike.
Median Household Income in Idaho
Idaho’s median household income has grown steadily over the years. The table below shows how it has changed over time.
| Year | Idaho Median Household Income |
|---|---|
| 2023 | $80,000 |
| 2022 | $75,624 |
| 1999 | $68,717 |
| 1989 | $62,063 |
Source: Trading Economics / Federal Reserve Data
Idaho Tax Brackets 2025
Idaho updated its income tax rate and income thresholds for 2025. The state continues to use a flat rate structure, making calculations straightforward.
The rate decreased from 5.695% to 5.3%, effective January 1, 2025. The income thresholds below which no tax applies were also adjusted.
| Filing Status | Taxable Income | Tax Rate | |
|---|---|---|---|
| Single | $1 to $4,811 | 0% | |
| Single | $4,812 and above | 5.3% | |
| Married Filing Jointly | $1 to $9,622 | 0% | |
| Married Filing Jointly | $9,623 and above | 5.3% |
Key points:
- The flat rate is now 5.3%, down from 5.695% in 2024.
- The zero-tax threshold for single filers is now $4,811 (up from $4,673 in 2024).
- The zero-tax threshold for married filers is now $9,622 (up from $9,346 in 2024).
- Thresholds are adjusted for inflation each year.
- Idaho now conforms to the federal One Big Beautiful Bill Act (House Bill 559), adding new deductions for tips, car loan interest, and overtime pay.
Wrapping It Up
Idaho has continued to simplify and reduce its income tax burden. The 2025 flat rate of 5.3% is lower than the 5.695% rate that applied in 2024. New federal conformity deductions also expand the options available to Idaho taxpayers when filing 2025 returns. Staying current on these changes helps you get an accurate picture of your take-home pay.
