Understanding Income Tax: A Data-Driven Perspective Income tax directly affects household budgets,...
Lower Income Taxes
*signed in to law March 6, 2025*
H40 Taxation: Income, Metals, Military (Moyle, Cannon, Monks, and Tanner) has passed the House, on to the Senate
This legislation reduces the state government’s income tax burden, allowing Idahoans to keep more of their own hard-earned money. First, it reduces Idaho’s flat income tax rate on individuals and corporations from 5.695% to 5.3%. Second, it expands Idaho’s income tax exemption on U.S. military pension income to include certain disabled veterans under age 62, all veterans aged 62-64, and undisabled veterans under age 62 who are also employed and earn sufficient income to owe federal income taxes. And third, it removes capital gains and losses for both precious metal bullion and monetized bullion from the calculation of state income taxes.
