Idaho Salary Calculator 2026 — Free Take-Home Pay Estimator

Idaho Income Tax Summary

Idaho has a flat income tax rate of 5.695% as of 2024, following tax reform in recent years. The state taxes most forms of income but offers a standard deduction. Idaho's overall tax burden is moderate. The state also relies on sales tax and property tax for revenue. [Source: Idaho State Tax Commission, 2026]

Idaho Income Tax Rules

• Flat income tax rate of 5.695% on Idaho taxable income [Source: Idaho State Tax Commission, 2026]
• Standard deduction: based on federal standard deduction (indexed annually) [Source: Idaho State Tax Commission, 2026]
• Personal exemption: $4,402 per exemption (indexed)
• Wages, salaries, tips, interest, dividends, and capital gains are all taxable
• Social Security benefits are not taxed at the state level
• Retirement income from pensions and IRA distributions is taxable
• Grocery tax credit available for low-income residents

Idaho Payroll & Withholding Rules

Employers must withhold Idaho income tax using the flat 5.695% rate. Withholding is on all Idaho-source wages. Unemployment insurance tax is employer-paid only with no employee portion. There are no mandatory local income taxes. [Source: Idaho State Tax Commission, 2026]

Local Taxes in Idaho

Idaho does not levy county or city income taxes. Local governments rely on property taxes and local option sales taxes (which are limited). There are no local payroll or income taxes assessed on individuals anywhere in Idaho.

Cost of Living Context

Idaho's cost of living is about 3% below the national average, though it has risen significantly in recent years. The Boise metro area has seen substantial housing cost increases. Rural areas remain more affordable. Overall, Idaho remains relatively affordable compared to neighboring Western states. [Source: Idaho State Tax Commission, 2026]

Real-World Example: Idaho

For a single filer earning $55,000/year in Boise, Idaho:

• Federal taxable income: ~$40,400 (after $14,600 standard deduction)
• Idaho state tax: ~$2,300 (using 2026 brackets)
• Estimated take-home: ~$4,008/month (pre-FICA, pre-insurance)

Note: Actual results vary based on deductions, credits, and local taxes.

Idaho FAQs

Q: What is the Idaho income tax rate? [Source: Idaho State Tax Commission, 2026] A: Idaho has a flat income tax rate of 5.695% for 2024. [Source: Idaho State Tax Commission, 2026]

Q: Does Idaho tax Social Security benefits? A: No, Idaho does not tax Social Security retirement benefits.

Q: Does Idaho tax retirement income? A: Yes, pension and IRA distributions are generally taxable at the flat 5.695% rate.

Q: What is the standard deduction in Idaho? [Source: Idaho State Tax Commission, 2026] A: Idaho uses the federal standard deduction as its starting point. [Source: Idaho State Tax Commission, 2026]

Q: Does Idaho have a state sales tax? A: Yes, Idaho has a state sales tax rate of 6%, with limited local options. [Source: Idaho State Tax Commission, 2026]

Q: Are capital gains taxed in Idaho? A: Yes, capital gains are taxed as ordinary income at Idaho's flat 5.695% rate.

Q: Does Idaho have a grocery tax credit? A: Yes, Idaho offers a grocery tax credit for low-income residents to offset sales tax on food.