2024 Changes to Idaho's Tax Rates

Individual & Business Income Tax Rates

In 2024, Idaho reduced the individual income tax rate. The new rate, effective for 2024, is now 5.695% for all taxpayers. Additionally, in 2023, Idaho streamlined its tax brackets, reducing them from four to two in an effort to simplify tax filing.

The 5.695% rate now applies to incomes over:

• $2,500 for single filers

• $5,000 for joint filers

This 2024 rate represents a decrease from the previous 5.8% rate in 2023. Idaho's tax rates have steadily decreased over the past five years, as shown below:

• 2024 - 5.695%

• 2023 - 5.8%

• 2022 - 6.0%

• 2021 - 6.5%

• 2020 - 6.925%

Filing and Payment Deadlines

For most Idaho taxpayers, the state tax return filing deadline remains April 15, same as federal deadlines. Filing for an extension is advisable for those needing extra time. However, it's crucial to pay any estimated taxes due by April 15 to avoid possible interest & penalties.

Estimated Tax Payments

Taxpayers expecting a tax liability of $1,000 or more should consider whether they need to make quarterly estimated tax payments. Staying current with these payments helps minimize interest & penalties.

Idaho State Tax Commission Website

The Idaho State Tax Commission website is an excellent resource for taxpayers, offering detailed explanations of the latest tax updates. You can find essential forms, FAQs, and guidance to help with tax preparation and filing requirements.

Disclaimer: This post is for informational purposes only and should not be considered tax, legal, or financial advice. Every individual's financial situation is unique, and tax laws are complex and frequently change. Please consult a qualified tax advisor or attorney for guidance tailored to your specific circumstances.