Calculate your 2026 Idaho state income tax at the flat 5.695% rate. Federal standard deduction ($15K/$30K), $120/person grocery tax credit. Compare ID vs neighboring states.
Idaho Income Tax 2026
Idaho uses a simple flat rate of 5.695% applied to income above the federal standard deduction. The grocery tax credit ($120/person) directly reduces the tax owed, providing meaningful relief for families.
Calculation Formula
ID Taxable Income = Gross Income โ Standard Deduction ($16,100 single / $32,200 MFJ)
ID Tax (before credit) = ID Taxable Income ร 5.695%
Grocery Tax Credit = $120 ร Number of Persons
ID Tax (final) = max(0, Tax before credit โ Grocery Credit)
Example: Single filer, $70,000, 1 person
ID taxable: $70,000 โ $15,000 = $55,000
ID tax before credit: $55,000 ร 5.695% = $3,132
Grocery credit: 1 ร $120 = $120
ID tax final: $3,132 โ $120 = $3,012 | Effective rate: 4.30%
Frequently Asked Questions
What is Idaho's income tax rate for 2026?
Idaho has a flat income tax rate of 5.695% for 2026. Idaho simplified its tax system in 2022 by eliminating multiple brackets and moving to a flat rate. The standard deduction mirrors the federal standard deduction ($16,100 single / $32,200 MFJ for 2026). Taxpayers also receive a grocery tax credit to offset Idaho's sales tax on food.
What is the Idaho grocery tax credit?
Idaho provides a grocery tax credit of $120 per person (taxpayer, spouse, and each dependent) to offset the sales tax paid on food. For a family of four, this represents $480 in direct credit against state income tax โ or a refund if Idaho income tax is zero. This credit is available even to non-itemizers and represents a significant benefit for larger families with lower incomes.
Does Idaho use the federal standard deduction?
Yes. Idaho's standard deduction mirrors the federal standard deduction amounts: $16,100 for single filers and $32,200 for married filing jointly in 2026. Idaho also follows the federal personal exemption structure. This alignment with federal deductions simplifies Idaho tax preparation considerably and means most Idahoans can use their federal return as a starting point.
How does Idaho's income tax compare to neighboring states?
Idaho (5.695%) is bordered by Washington (no income tax), Oregon (8.75% top rate), Montana (5.9%), Nevada (no income tax), Utah (4.5%), Wyoming (no income tax), and former-border state California (13.3%). Among neighboring states with income taxes, Idaho's flat 5.695% is competitive. Notably, Idaho's flat rate prevents bracket creep that affects earnings in progressive states like Oregon.
Are retirement benefits taxed in Idaho?
Yes, most retirement income is taxable in Idaho at the flat 5.695% rate. This includes Social Security benefits, pension income, IRA and 401(k) distributions. However, Idaho provides a retirement benefits deduction for taxpayers age 65+ (or disabled): up to $35,090 single / $52,635 MFJ in 2026. Social Security is deductible to the extent it is included in federal AGI for qualifying taxpayers.