Idaho's income tax brackets and rates

Idaho has a progressive income tax system, meaning the rate you pay increases as your income rises. The state uses tax brackets — ranges of income taxed at the same rate — rather than a flat tax on all your earnings.

As of 2024, Idaho has six tax brackets ranging from 1% on the lowest income to 5.8% on the highest. The exact brackets depend on your filing status (single, married filing jointly, married filing separately, or head of household). A single filer in 2024, for example, pays 1% on income up to $1,783, then 3% on income from $1,784 to $3,567, and so on, with the top rate of 5.8% explore to income over $32,151.

These bracket amounts adjust slightly each year for inflation, so the thresholds you see this year will be different next year. You can find the current brackets on the Idaho State Tax Commission website when you file.

Key Takeaways

  • Idaho's income tax ranges from 1% to 5.8% depending on how much you earn and your filing status.
  • You only pay the higher rate on income that falls into that bracket, not on all your income.
  • Idaho allows a standard deduction that reduces the income you actually pay tax on, similar to the federal system.
  • If you work in Idaho but live in another state, or vice versa, you may owe taxes to both states and should check reciprocal tax agreements.
  • The Idaho State Tax Commission publishes updated brackets and deduction amounts each year before tax season.

How the progressive system actually works

The progressive bracket system confuses many people because they think moving into a higher bracket means all their income gets taxed at that rate. That is not how it works. Only the income that falls within each bracket is taxed at that bracket's rate.

Say you are single and earn $40,000 in 2024. You do not pay 5.8% on the whole amount. Instead, you pay 1% on the first $1,783, then 3% on the next $1,784 (income from $1,784 to $3,567), then 4.8% on the next $5,000, and so on, with 5.8% only on the portion of your income above $32,151. This is called the marginal tax rate — the rate on your last dollar earned — and it is different from your effective tax rate, which is the average rate you pay on all your income.

Idaho's standard deduction and personal exemptions

Before Idaho taxes your income, you subtract the standard deduction, an amount the state lets you deduct without itemizing specific expenses. For 2024, the standard deduction for a single filer is $14,600, and for married filing jointly it is $29,200. These amounts are higher than they were in previous years because Idaho has been increasing them.

Idaho also allows a personal exemption for you and your dependents — a small additional deduction per person. The amount varies by year; check the Idaho State Tax Commission website for the current figure when you file.

These deductions mean you do not pay tax on your first $14,600 (or $29,200 if married filing jointly) of income, plus the exemption amounts. If your income is below these thresholds, you may not owe Idaho income tax at all.

When you have to file an Idaho tax return

You must file an Idaho return if your income exceeds the standard deduction for your filing status, or if you had Idaho income tax withheld from your paychecks and want a refund. Even if you do not owe tax, filing can get you money back if your employer withheld too much.

If you are a resident of Idaho, you report all income you earned anywhere — wages, self-employment income, investment income, and so on. If you are a nonresident who worked in Idaho, you report only the income you earned in the state.

Idaho returns are due on the same day as federal returns, typically April 15, though the important date shifts if that date falls on a weekend or holiday. You can file on paper or electronically through the Idaho State Tax Commission website.

Credits and deductions that lower your tax bill

Beyond the standard deduction, Idaho offers several credits and deductions that can reduce what you owe. A tax credit directly reduces the tax you pay, dollar for dollar, while a deduction reduces the income you are taxed on.

Common Idaho credits include the child and dependent care credit, the earned income credit (which mirrors the federal version), and credits for property taxes or rent paid. Idaho also offers a dependent exemption credit for each dependent you claim. The amounts and rules for these credits change, so review the current year's instructions when you file.

If you itemize deductions instead of taking the standard deduction, you can deduct mortgage interest, charitable donations, and some state and local taxes, though the federal limit on state and local tax deductions (the SALT cap) affects how much Idaho tax you can deduct federally.

Idaho income tax for self-employed people

If you are self-employed, you owe Idaho income tax on your net business income (revenue minus business expenses) just as you do on wages. You also owe self-employment tax to the federal government, which covers Social Security and Medicare — Idaho does not have a separate self-employment tax.

Self-employed filers can deduct half of their self-employment tax from their Idaho taxable income, and they can deduct legitimate business expenses like equipment, supplies, home office costs, and vehicle mileage. Keep records of all expenses and receipts. If you expect to owe more than a certain amount (the threshold changes yearly), you may need to make quarterly estimated tax payments to Idaho.

How Idaho taxes compare to other states

Idaho's top rate of 5.8% is moderate compared to other states. Some states have no income tax at all (like Wyoming, Nevada, and South Dakota), while others have top rates above 10%. Idaho's lowest bracket of 1% is also lower than many states' starting rates.

However, Idaho's overall tax burden depends on more than just income tax. The state also has sales tax, property tax, and various other fees. When comparing states, consider the full picture of what you will pay in all taxes combined, not just income tax.

Frequently Asked Questions

Do I have to pay Idaho income tax if I live out of state but work in Idaho?

Yes, you owe Idaho tax on income you earned in the state. However, you may also owe tax to your home state. Some states have reciprocal agreements that let you avoid double taxation — for example, if you live in Washington and work in Idaho, you may only owe Washington tax. Check with both states' tax agencies to understand your situation.

What if I moved to Idaho partway through the year?

You are a resident for the part of the year you lived in Idaho and a nonresident for the part you did not. You report all income earned while a resident, and only Idaho-source income earned while a nonresident. Your standard deduction and brackets may be prorated based on the number of months you were a resident.

Can I deduct federal income tax from my Idaho return?

No, Idaho does not allow you to deduct federal income tax. However, you can deduct Idaho income tax on your federal return (up to the SALT cap of $10,000 per year), and you can deduct property taxes and sales taxes as well.

Where do I file my Idaho return, and what if I owe money?

File through the Idaho State Tax Commission website or by mail. If you owe tax, you can pay online, by check, or through an installment plan. The commission charges interest and penalties on late payments, so pay as soon as you can.

Does Idaho tax retirement income like Social Security or pensions?

Idaho does not tax Social Security benefits. Pensions and retirement account withdrawals are taxed as income unless they may have access to for a specific exemption. Some military pensions and federal employee pensions have special treatment — check the current year's instructions for details.