Idaho Tax Calculator 2025
Calculate your Idaho state income tax with our comprehensive 2025 calculator featuring the Gem State's progressive tax rates from 1.125% to 6%, mountain lifestyle benefits, and advanced tax planning tools for Idaho's natural beauty-focused economy.
Calculate Your Idaho Tax
Enter your income information to calculate Idaho's progressive state income tax with rates ranging from 1.125% to 6% plus applicable deductions and Gem State considerations.
Idaho Tax Structure 2025
Idaho operates a progressive income tax system with rates ranging from 1.125% to 6%, making it a moderate-tax Western state. The Gem State provides various benefits for retirees and mountain lifestyle residents.
ID Progressive Tax Brackets (2025)
- 1.125% on income up to $1,665
- 3.125% on income $1,666-$3,329
- 3.625% on income $3,330-$4,995
- 4.625% on income $4,996-$6,660
- 5.625% on income $6,661-$8,325
- 6.625% on income $8,326-$10,990
- 6.925% on income $10,991-$26,655
- 6% on income over $26,655
Standard Deductions (2025)
- Single: $14,070
- Married Filing Jointly: $28,140
- Married Filing Separately: $14,070
- Head of Household: $21,105
Idaho Tax Benefits and Mountain State Advantages
Idaho provides several valuable tax benefits, particularly for retirees, outdoor enthusiasts, and working families. The state's mountain lifestyle and moderate tax rates make it attractive for many taxpayers.
- Personal Exemption: $4,700 per taxpayer and qualifying dependent
- Retirement Income Deduction: Up to $53,710 for taxpayers 65 and older
- Social Security Exempt: Social Security benefits are not subject to Idaho tax
- Grocery Credit: $120 credit per person ($240 for married filing jointly)
- Property Tax Reduction: Circuit breaker property tax relief program
- Child Tax Credit: Up to $205 per qualifying child
- Earned Income Credit: Idaho earned income credit supplement
Idaho Residency and Mountain Lifestyle Tax Planning
Understanding Idaho residency requirements and mountain lifestyle tax planning strategies is important given the state's outdoor recreation economy and moderate income tax structure.
Establishing ID Residency
Idaho considers you a resident if you are domiciled in Idaho or you maintain a permanent place of abode in Idaho and spend more than 270 days in the state during the tax year.
Mountain Lifestyle Benefits
Idaho's outdoor recreation economy and mountain lifestyle provide unique considerations for remote workers, seasonal residents, and retirement planning in the Western mountain region.
Sales Tax Considerations
Idaho has a state sales tax rate of 6% with local additions possible. The grocery credit helps offset sales tax burden on food purchases for lower-income residents.
Retirement Income Planning
Idaho's substantial retirement income deduction ($53,710 for 65+) and no tax on Social Security makes it very retirement-friendly. Plan retirement withdrawals to maximize Idaho's favorable treatment.
Frequently Asked Questions
What are Idaho's income tax rates for 2025?
Idaho has progressive income tax rates ranging from 1.125% to 6% for 2025. The rates increase across seven brackets, with the top rate of 6% applying to income over $26,655 for single filers and $53,310 for married filing jointly.
Is Idaho tax-friendly for retirees?
Yes, Idaho provides a retirement income deduction of up to $53,710 for taxpayers 65 and older, plus Social Security benefits are not taxed, making it relatively retirement-friendly among mountain states.
What is Idaho's sales tax rate?
Idaho has a state sales tax rate of 6%, with local jurisdictions able to add additional sales tax, resulting in combined rates typically ranging from 6% to 8.5% depending on location.
How does Idaho tax remote workers?
Idaho residents working remotely pay Idaho tax on all income regardless of where they work. Non-residents working remotely for Idaho companies generally don't owe Idaho tax unless they work physically in the state.
What deductions are available for Idaho taxpayers?
Idaho offers standard deductions, personal exemptions, retirement income deductions for 65+, property tax reduction, and various credits including the grocery credit and child tax credit.
How does Idaho compare to neighboring states for taxes?
Idaho's tax burden is moderate compared to neighboring states. It's higher than no-tax states like Wyoming and Washington, but competitive with Montana and Utah when considering the overall tax burden and cost of living.