Idaho Income Tax

Idaho Income Tax 2026: Rates, How It Works & What You Actually Keep

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If you’ve ever lived or worked in a state with complicated income tax brackets — multiple rates, local taxes, city surcharges, the whole mess — moving to Idaho is going to feel refreshing.

Idaho keeps it simple.

One flat rate. 5.8%. That’s it.

It doesn’t matter if you make $30,000 a year or $130,000. Everyone who earns taxable income in Idaho pays the same 5.8% state income tax rate. No jumping between brackets, no trying to figure out which portion of your income gets taxed at which rate.

Of course, simple doesn’t mean zero. You’re still paying Idaho state income tax on every paycheck, and combined with federal income tax, Social Security, and Medicare, that can add up to a meaningful chunk of your gross pay.

So let’s break down exactly how Idaho income tax works in 2026, what you can expect to see deducted from your paycheck, and what you actually take home at different salary levels.

Idaho State Income Tax Rate 2026: The Flat 5.8%

Idaho switched to a flat income tax system and the rate for 2026 is 5.8%.

This applies to your taxable income — not your gross salary. Before the 5.8% kicks in, Idaho lets you subtract a standard deduction first:

  • Single filers: $16,100 standard deduction
  • Married filing jointly: $32,200 standard deduction

Idaho’s standard deduction mirrors the federal amount, which is actually quite generous. It means a good portion of your income is shielded from state tax before the 5.8% rate even applies.

Here’s how that math plays out:

Example: $60,000 salary, single filer

Step 1 — Subtract Idaho standard deduction: $60,000 − $16,100 = $43,900 taxable income

Step 2 — Apply flat 5.8% rate: $43,900 × 5.8% = $2,546 Idaho state tax per year

That works out to about $98 per bi-weekly paycheck going to the state of Idaho.

Your effective Idaho state tax rate on the full $60,000 salary? About 4.2% — not the full 5.8%, because the standard deduction shelters a meaningful portion of your income first.

How Idaho Compares to Other States

Before we go deeper, it’s worth stepping back and asking — is 5.8% a good deal or a bad deal?

Here’s how Idaho stacks up against neighboring and similar states in 2026:

State Income Tax System Top Rate
Idaho Flat 5.8% 5.8%
Montana Progressive 5.9%
Utah Flat 4.55%
Nevada No income tax 0%
Wyoming No income tax 0%
Washington No income tax 0%
Oregon Progressive 9.9%
Colorado Flat 4.40%

 

Idaho falls in the middle of the pack. Nevada, Wyoming, and Washington — all neighboring states — charge zero state income tax, which is hard to beat. But Idaho’s 5.8% flat rate is significantly better than Oregon’s 9.9% top rate, and the flat system means there are no surprises as your income grows.

Everything That Comes Out of an Idaho Paycheck

Idaho state income tax is just one of four main deductions on your paycheck. Here’s the full picture:

Federal Income Tax

Calculated using 2026 IRS progressive brackets ranging from 10% to 37%. Most Idaho workers earning between $30,000 and $90,000 will see the 10% and 12% brackets apply to the majority of their income.

Idaho State Income Tax

Flat 5.8% on taxable income after the standard deduction. Same rate for every Idaho worker regardless of how much they earn or which city they live in.

Social Security Tax

6.2% of gross wages up to the 2026 wage cap of $184,500. This funds the federal Social Security retirement and disability program.

Medicare Tax

1.45% of gross wages with no income cap. Everyone pays this one on every dollar they earn.

What Idaho Does NOT Charge

This is worth knowing:

No SDI tax. Some states like California deduct State Disability Insurance from every paycheck. Idaho has no SDI program and no SDI deduction.

No local income tax. Whether you work in Boise, Idaho Falls, Nampa, Coeur d’Alene, or anywhere else in the state — there are no city or county income taxes in Idaho. Your 5.8% flat rate is the only state-level tax on your wages.

Idaho Take-Home Pay by Salary in 2026

Here’s what Idaho workers actually take home at different salary levels after all deductions. These estimates are based on a single filer using the standard deduction with no additional pre-tax contributions:

Annual Salary Federal Tax Idaho State Tax FICA Take-Home Pay You Keep
$30,000 $1,340 $811 $2,295 $25,554 85.2%
$40,000 $2,918 $1,391 $3,060 $32,631 81.6%
$50,000 $4,718 $1,971 $3,825 $39,486 79.0%
$60,000 $6,818 $2,546 $4,590 $46,046 76.7%
$75,000 $9,868 $3,421 $5,738 $55,973 74.6%
$100,000 $15,868 $4,858 $7,650 $71,624 71.6%

 

Most Idaho workers keep somewhere between 72% and 85% of their gross pay depending on their salary level. The lower your income, the higher percentage you keep — that’s the progressive nature of federal income tax doing its job, even though Idaho’s tax itself is flat.

For your exact number, the Idaho Paycheck Calculator runs the full calculation using your actual salary, filing status, and any deductions you have.

Pre-Tax Deductions That Lower Your Idaho Tax Bill

Here’s something a lot of Idaho workers don’t fully take advantage of — pre-tax deductions reduce your taxable income for both federal AND Idaho state tax purposes.

401(k) contributions Every dollar you put into a traditional 401(k) reduces your taxable income dollar for dollar. In 2026 you can contribute up to $24,500 per year. That means 5.8% of whatever you contribute goes back in your pocket instead of to the state of Idaho.

If you contribute $10,000 to your 401(k) this year, you save $580 in Idaho state income tax alone — on top of whatever you save on federal taxes.

Health insurance premiums If your employer deducts your health insurance premiums pre-tax (through a Section 125 plan, which most employers do), those premiums reduce your taxable income the same way a 401(k) contribution does.

HSA contributions Health Savings Account contributions are pre-tax up to $4,400 per year for single coverage and $8,750 for families. They reduce both your federal and Idaho state taxable income.

Does Idaho Tax Retirement Income?

This is a question a lot of people ask, especially those approaching retirement or moving to Idaho in their later years.

Here’s the short version:

Social Security benefits — Idaho does tax Social Security income to the extent it’s taxable at the federal level. If your Social Security benefits are subject to federal income tax, they’re generally also subject to Idaho income tax.

401(k) and IRA withdrawals — Yes, these are taxable in Idaho at the flat 5.8% rate.

Pension income — Idaho taxes pension income, though there are some deductions available for retirement income that can reduce the amount owed. A tax professional can walk you through what applies to your specific situation.

Idaho does offer a retirement income deduction of up to $36,500 for qualifying taxpayers age 65 and older, which can significantly reduce the state tax burden for retirees.

Frequently Asked Questions About Idaho Income Tax

Is Idaho a high tax state? Not particularly. With a flat 5.8% rate and no local income taxes, Idaho sits in the middle of the national range. It’s higher than neighboring Nevada, Wyoming, and Washington (which have no income tax at all) but much lower than Oregon at 9.9% or California at up to 13.3%.

Does Idaho have a progressive income tax? No. Idaho uses a flat income tax system — everyone pays the same 5.8% rate on their taxable income, regardless of how much they earn.

What is the Idaho standard deduction for 2026? $16,100 for single filers and $32,200 for married filing jointly. Idaho mirrors the federal standard deduction amount, which is one of the more generous state deduction amounts in the country.

Do I pay Idaho income tax if I work remotely for an out-of-state company? If you live in Idaho and perform your work in Idaho — even for a company based in another state — you generally owe Idaho income tax on those wages. The key factor is where you physically do the work, not where your employer is located.

When are Idaho state taxes due? April 15, the same as federal taxes. If that date falls on a weekend or holiday, the deadline shifts to the next business day.

Can I get a refund of Idaho income tax? Yes — if your employer withheld more Idaho state tax from your paychecks throughout the year than you actually owed, you’ll receive a refund when you file your Idaho state return

Idaho’s income tax system is genuinely one of the easiest to understand in the country. A flat 5.8% rate, a generous $16,100 standard deduction for single filers, no local taxes, and no SDI — it doesn’t get much simpler than that.

Most Idaho workers end up paying an effective state tax rate somewhere between 4% and 5% once the standard deduction is factored in. Combined with federal taxes and FICA, the typical Idaho worker keeps between 72% and 85% of their gross pay depending on their salary level.

Want to see exactly what your Idaho paycheck looks like after every deduction? The free Idaho Paycheck Calculator handles all the math in under a minute — updated for 2026 tax rates, completely free, no account needed.

Sources: Idaho State Tax Commission · IRS Rev. Proc. 2025-32 · Updated June 2026

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