Why did Idaho switch to a flat income tax?

Idaho converted from a graduated income tax (with rates ranging from 1% to 6%) to a flat 5.695% rate in 2023. The legislature aimed to simplify the tax code and make the state more competitive with neighbors like Wyoming and Montana. The flat rate applies to all taxable income above the standard deduction, which conforms to the federal amount ($15,750 single / $31,500 MFJ for 2026).

What is the Idaho grocery tax credit?

Idaho provides a $120 per-person refundable grocery tax credit. Every person claimed on your Idaho return qualifies. The credit is subtracted directly from your state tax liability, and because it's refundable, you receive the full amount even if your tax bill is lower than $120. For a family of four, that's $480 back.

How does Idaho compare to Utah, Oregon, and Washington?

Idaho's 5.695% flat rate sits between its neighbors. Utah has a flat 4.65% rate (lower). Oregon has progressive rates up to 9.9% (higher, and no sales tax). Washington has no income tax at all but levies a 7% capital gains tax on gains over $270,000. Wyoming and Montana (no sales tax, graduated income tax up to 5.9%) are also common comparisons. On an $80K salary, Idaho's effective state rate is about 4.4% after the grocery credit.

Idaho Paycheck Calculator 2026

Q: Does Idaho follow the federal standard deduction?

Yes. Idaho conforms to the federal standard deduction amounts: $15,750 for single filers, $31,500 for married filing jointly, and $23,500 for head of household in 2026. This simplifies filing because you use the same deduction on both your federal and state returns.

Flat 5.695% rate (converted from progressive in 2023). Federal-conforming deduction + $120 grocery credit. Effective rate ~4.6% at $80K.

Gross annual salary

Pay frequency

Filing status

Idaho Grocery Tax Credit: $120/person grocery tax credit reduces your Idaho tax. Adjust the person count under "More options" for your household.

Take-home per paycheck (biweekly)

$2,357.38

Gross pay (annual)$80,000

Deductions (annual)

Federal income tax−$9,049

ID state tax (5.695%)−$3,659

Grocery tax credit+$120

Net ID state tax−$3,539

Social Security (6.2%)−$4,960

Medicare (1.45%)−$1,160

Summary

Annual take-home$61,292

Effective total tax rate23.4%

Effective ID state rate4.4%

You keep per dollar77 cents

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Idaho Paycheck Calculator 2026 · Updated April 2026

How to Use This Calculator

Tab "Take-Home Pay"

Enter your gross annual salary, pay frequency, and filing status. The calculator deducts federal income tax, Idaho's flat 5.695% state tax (minus the grocery credit), and FICA (Social Security + Medicare). Under "More options," add 401(k) contributions, health insurance premiums, and the number of persons eligible for Idaho's $120 grocery tax credit. You'll see your per-paycheck take-home and an annual summary with your effective tax rate.

Tab "Tax Breakdown"

A visual pie chart showing exactly where your money goes. You'll see four tax slices: federal income tax, ID state tax, Social Security, and Medicare. The chart also highlights that Idaho replaced its graduated 1%-6% brackets with a single flat 5.695% rate in 2023.

Tab "Compare Filing Status"

See how your take-home pay changes across Single vs Married Filing Jointly vs Head of Household. The comparison shows federal tax, ID state tax, and total take-home for each status. Because Idaho conforms to the federal standard deduction ($15,750 single vs $31,500 MFJ vs $23,500 HoH), the state tax difference comes entirely from that deduction gap. MFJ filers also get 2 grocery credits ($240 total).

The Formulas

Federal Income Tax (2026 brackets, progressive):
1. Start with gross annual salary
2. Subtract pre-tax deductions (401k, health insurance)
3. Subtract standard deduction ($15,750 Single / $31,500 MFJ / $23,500 HoH)
4. Apply progressive brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%

Idaho State Tax (flat rate + grocery credit):
ID taxable income = Gross salary - Federal standard deduction (Idaho conforms)
ID gross tax = ID taxable income x 5.695%
Grocery credit = $120 x number of persons
ID net tax = max(0, ID gross tax - Grocery credit)
No local income taxes apply anywhere in Idaho.

FICA (Federal Insurance Contributions Act):
Social Security = 6.2% x min(Gross wages, $184,500)
Medicare = 1.45% x Gross wages
Additional Medicare = 0.9% x max(0, Gross wages - $200,000)

Take-Home Pay:
Net = Gross salary - Federal tax - ID net state tax - Social Security - Medicare - Pre-tax deductions

All figures use 2026 IRS rates: SS wage base $184,500 (SSA), tax brackets from Rev. Proc. 2025-32, TCJA rates made permanent by OBBBA. Idaho 5.695% flat rate per HB 292 (2023), effective January 1, 2023. Grocery credit per Idaho Code 63-3024A.

Example

Sarah — Marketing Manager in Boise, Idaho

Filing Single. $80,000/year salary. Paid biweekly (26 paychecks). No pre-tax deductions. 1 person for grocery credit.

Gross salary (annual)$80,000

Federal income tax-$9,049

ID gross tax (5.695%)-$3,660

Grocery credit (1 person)+$120

ID net state tax-$3,540

Social Security (6.2%)-$4,960

Medicare (1.45%)-$1,160

Annual take-home$61,291

Per paycheck (biweekly)$2,357

ID taxable income = $80,000 - $15,750 = $64,250. ID gross tax = $64,250 x 5.695% = $3,660. After subtracting the $120 grocery credit, net ID tax = $3,540. Sarah keeps 76.6% of her gross salary. Compared to neighboring Washington (no income tax), the 5.695% rate costs about $3,540 more — but Idaho has a much lower cost of living and no 7% capital gains surtax.

Frequently Asked Questions

When did Idaho switch to a flat tax, and why?▼

Idaho enacted HB 292 in 2023, replacing the graduated income tax system (with rates ranging from 1% to 6% across multiple brackets) with a single flat rate of 5.695%. The legislature cited simplicity, economic competitiveness, and alignment with a national trend of states moving to flat taxes. The flat rate took effect for the 2023 tax year. Prior to this, Idaho had been gradually reducing its top rate over several years.

How does the Idaho grocery tax credit work?▼

Idaho provides a $120 per-person refundable grocery tax credit. Every person listed on your Idaho tax return — you, your spouse, and each dependent — qualifies. The credit is subtracted directly from your Idaho tax liability. Because it is refundable, if the credit exceeds your tax, you receive the difference as a refund. For a family of four, that is $480 in annual savings. The credit was historically intended to offset Idaho's sales tax on groceries.

Does Idaho have local or city income taxes?▼

No. Idaho does not impose any local, city, or county income taxes. Your only state-level income deduction is the flat 5.695% rate on income above the standard deduction, minus the grocery credit. Whether you live in Boise, Idaho Falls, Pocatello, or a rural area, the state income tax calculation is identical. Idaho does levy local sales taxes and property taxes, which vary by jurisdiction.

How does Idaho compare to neighboring states?▼

Idaho's 5.695% flat rate is moderate among its neighbors. Washington and Wyoming have no income tax. Utah has a flat 4.65% (lower). Oregon has progressive rates up to 9.9% (much higher but no sales tax). Montana has graduated rates up to 5.9%. On an $80K salary, Idaho's effective state rate is about 4.4% after the grocery credit, making it competitive in the Mountain West region. Cost of living in Idaho, while rising, remains lower than Oregon or Washington's metro areas.

Does Idaho follow the federal standard deduction?▼

Yes. Idaho conforms to the federal standard deduction: $15,750 for single filers, $31,500 for married filing jointly, and $23,500 for head of household in 2026. This is a significant simplification — you use the same deduction on both returns. Idaho also allows itemized deductions if they exceed the standard deduction, generally following federal rules with a few Idaho-specific adjustments.

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