Idaho uses a flat 5.30% income tax rate for TY2026, reduced from 5.695% during the 2026 Idaho legislative session. The flat rate applies to all Idaho taxable income for all filing statuses. Idaho conforms to the federal standard deduction ($16,100 single / $32,200 MFJ for TY2026). Idaho taxes groceries at the full 6.00% state sales tax rate but provides a grocery tax credit of $155 per person (or $250 per person with receipts) claimable on Form 39R. Social Security benefits are exempt from Idaho income tax. Idaho does not impose local income taxes.
State Income Tax
5.30% flat
Standard Deduction (Single)
$16,100 (federal)
Grocery Tax Credit
$155/person (base)
Social Security Tax
Exempt
Idaho Income Tax Rate 2026
Idaho's flat 5.30% rate applies to all Idaho taxable income for all filing statuses - single, married filing jointly, married filing separately, and head of household. There are no graduated brackets. This rate was reduced from 5.695% for TY2026 in the Idaho legislative session. Idaho's rate has fallen steadily: 5.8% (2023), then 5.695% (2024-2025), then 5.30% (TY2026).
Idaho Taxable Income (All Filing Statuses)
Rate
All income
5.30%
Idaho Standard Deduction 2026
Idaho conforms to the federal standard deduction. For TY2026, Idaho standard deduction amounts (per Rev. Proc. 2025-32):
Filing Status
Standard Deduction
Single
$16,100
Married Filing Jointly
$32,200
Married Filing Separately
$16,100
Head of Household
$24,150
Idaho filers who take the standard deduction use the same amounts as on their federal return, simplifying state filing. Idaho filers who itemize on their federal return may also choose to itemize on their Idaho return using Idaho's itemized deduction rules.
Idaho Grocery Tax & Grocery Tax Credit
Idaho taxes grocery food purchases at the full 6.00% state sales tax rate at checkout. To offset this, Idaho provides a refundable grocery tax credit claimable on the Idaho income tax return (Form 39R):
Base credit: $155 per person per year (no receipts required)
With receipts: $250 per person per year (must retain qualifying food purchase receipts)
The credit is refundable, meaning it can reduce Idaho tax liability below zero and generate a refund. For a family of four claiming the base credit, this equals $620 returned on their Idaho return. Lower-income filers who spend relatively more on groceries as a share of income benefit most from this mechanism, as the credit largely or fully offsets the grocery tax burden.
Idaho OBBBA Conformity - Status Pending
Idaho's conformity to the OBBBA tips deduction, overtime deduction, and senior bonus deduction has not yet been confirmed in published Idaho State Tax Commission guidance as of the last update to this page. Idaho generally conforms to the Internal Revenue Code but can decouple from specific provisions. Idaho taxpayers with tip income, overtime pay, or senior bonus income should verify the current conformity status at tax.idaho.gov before filing or estimating withholding for TY2026.
Idaho uses a flat 5.30% income tax rate for TY2026, applying uniformly to all Idaho taxable income regardless of filing status or income level. This rate was reduced from 5.695% (TY2024–2025) during the 2026 Idaho legislative session. Idaho's rate history reflects a steady downward trend: 5.8% (2023), 5.695% (2024–2025), 5.30% (TY2026). The flat structure means every additional dollar of Idaho taxable income is taxed at exactly 5.30%.
How does Idaho's grocery tax credit work?
Idaho taxes groceries at the full 6.00% state sales tax rate at the point of purchase. However, Idaho provides a grocery tax credit claimable on the Idaho income tax return (Form 39R) to offset that burden. For TY2026, the credit is $155 per person per year as a base amount, or $250 per person per year for filers who retain qualifying food purchase receipts. The credit is refundable, meaning it can reduce Idaho tax liability to zero and generate a refund. A family of four claiming the base credit receives $620 back. This mechanism means that lower-income Idaho filers effectively pay little to no net grocery tax after claiming the credit.
What standard deduction does Idaho use for 2026?
Idaho conforms to the federal standard deduction. For TY2026, Idaho standard deduction amounts match federal amounts confirmed by Rev. Proc. 2025-32: $16,100 for single filers, $32,200 for married filing jointly, and $24,150 for head of household. Because Idaho conforms to the federal standard deduction, Idaho filers who take the standard deduction use the same amount on their Idaho return as on their federal return - simplifying state tax preparation significantly.
Does Idaho have a personal exemption?
No. Idaho does not provide a personal exemption for TY2026. Idaho's starting point for state tax is federal adjusted gross income (AGI), adjusted for Idaho modifications, then reduced by the standard deduction (or itemized deductions). There is no additional per-person exemption amount that reduces Idaho taxable income.
Does Idaho conform to the OBBBA tips and overtime deductions?
Idaho's conformity to the OBBBA tips and overtime deductions is not yet confirmed for TY2026. Idaho generally conforms to the Internal Revenue Code but may decouple from specific federal provisions enacted after a given date. Whether Idaho will adopt or decouple from the OBBBA tip income deduction, overtime deduction, and senior bonus deduction has not been published in confirmed Idaho State Tax Commission guidance as of the last update to this page. Check Idaho State Tax Commission guidance at tax.idaho.gov for the latest conformity status before filing.
Does Idaho have a sales tax, and what is the rate?
Yes. Idaho's state sales tax rate is 6.00%. Some resort cities and auditorium districts may add local sales taxes. Idaho taxes groceries at the full 6.00% state rate at the point of purchase but provides a grocery tax credit ($155/person base, $250/person with receipts) on the Idaho income tax return (Form 39R) to offset the grocery tax burden. Idaho does not impose local income taxes.
Is Social Security income taxed in Idaho?
No. Idaho does not tax Social Security benefits. However, most other retirement income - including 401(k) distributions, IRA withdrawals, and most pension income - is subject to Idaho income tax at the flat 5.30% rate. There is no general retirement income exclusion in Idaho beyond the Social Security exemption. Idaho filers receiving pension or retirement distributions other than Social Security will owe Idaho income tax on those amounts at the flat rate.
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