Updated for tax year 2025.
If you live or work in Idaho, you’ll likely need to file an Idaho state income tax return along with your federal return. Idaho uses a flat income tax rate on Idaho taxable income above indexed low-income thresholds, so your filing status and income level affect how much state tax you owe.
This guide explains Idaho’s 2025 income tax rate, standard deduction, available credits and subtractions, and the updates for the current tax year. When you’re ready to file, TaxAct® automatically applies Idaho’s tax rules to help you accurately prepare your Idaho return alongside your federal return.
What is the Idaho state income tax?
Idaho state income tax is a tax on income earned by individuals. It is collected by the Idaho State Tax Commission and helps fund state services.
For tax year 2025, Idaho’s income tax rate is 5.3% on Idaho taxable income above indexed thresholds. Idaho residents are generally taxed on income from all sources, except Social Security and railroad retirement benefits. Idaho nonresidents are taxed on Idaho-source income, and part-year residents are taxed on income received while living in Idaho.
Idaho income tax rates and tax brackets
To estimate your Idaho tax bill or refund, it helps to understand how Idaho taxes income. Idaho uses a 5.3% rate on Idaho taxable income above inflation-indexed amounts for 2025. Below those amounts, the rate schedule applies 0%. Here are the 2025 brackets from the Idaho rate schedule:
| Tax Rate | Single Filers | Married Filing Jointly |
|---|---|---|
| 0% | $1–$4,811 | $1–$9,622 |
| 5.3% | Over $4,811 | Over $9,622 |
If you need more information on how federal tax brackets work, you can use our tax bracket calculator for federal taxes. See the Idaho individual income tax rate schedule for official 2025 rate information.
Idaho standard deduction
Idaho taxpayers can claim the standard deduction or itemize deductions on Form 40, whichever provides the greater tax benefit. Idaho standard deduction amounts match the federal standard deduction for 2025:
- $15,750 for single filers and married filing separately
- $23,625 for head of household filers
- $31,500 for married filing jointly and qualifying surviving spouse filers
See the Idaho individual income tax basics for current standard deduction amounts and filing guidance.
Idaho exemptions and credits
Idaho does not offer a separate personal exemption amount like some states. Instead, Idaho provides credits, subtractions, and deductions that can reduce your Idaho tax. Examples include:
- Idaho Grocery (Food) Tax Credit — a refundable credit for qualifying Idaho residents
- Idaho Retirement Benefits Deduction — for certain qualifying Idaho public-safety pensions
- IDEAL — Idaho College Savings Program — tax benefits for contributions to qualified education savings accounts
- Social Security and railroad retirement benefits — not taxed as Idaho income for residents
See Idaho popular credits and deductions and the Idaho Form 40 instructions for eligibility, limits, and worksheets.
Idaho tax changes for 2025
For tax year 2025, Idaho lowered its income tax rate from 5.695% to 5.3%. Idaho also indexes the low-income amounts in its rate schedule each year, which changes the income ranges that are taxed at 0% before the 5.3% rate applies.
Idaho law conforms to the Internal Revenue Code as of January 1, 2024, so federal tax changes after that date may not automatically apply on your Idaho return. Idaho also does not conform to federal bonus depreciation under IRC section 168(k). See Idaho IRC conformity and the individual income tax basics for a full list of 2025 tax rules.
FAQs
The bottom line
Idaho’s 2025 income tax applies 5.3% on Idaho taxable income above indexed thresholds, with a 0% bracket on income below those amounts. Knowing how the standard deduction works, which credits you may qualify for, and how Idaho differs from federal conformity can help you estimate what you may owe or get back.
When you’re ready to file, TaxAct can help you prepare your federal and Idaho returns in one place so you can file with confidence.
Already filed your taxes and waiting for your refund? Learn more about where your Idaho state tax refund is.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.
The OBBB is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used here, but they refer to the same set of tax changes.
Citations
Idaho State Tax Commission. “Individual Income Tax Basics.” Accessed 18 Aug. 2026.
Idaho State Tax Commission. “Individual Income Tax Rate Schedule.” Accessed 18 Aug. 2026.
Idaho State Tax Commission. “Conformity to Federal Internal Revenue Code (IRC).” Accessed 18 Aug. 2026.
TaxAct. “Working Families Tax Cuts Act: 2025 Tax Reform Explained.” TaxAct Blog.
TaxAct. “Where Is My Idaho State Tax Refund?” TaxAct Blog, 16 Feb. 2026.