Request a Demo

Idaho Wage and Payroll Tax Facts

February 02, 2024

Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Idaho.

Select a state or federal tax guide
Skip to end of table of contents

Idaho matches the overall minimum wage rate required by the federal government in the Fair Labor Standards Act (FLSA). Unlike the FLSA, however, Idaho splits that overall rate more evenly between tipped wages and tip credits. 
 
When it comes to processing payroll, Idaho-based organizations must handle the following taxes in addition to those required by the federal government:

The below information was last updated January 30, 2024. It is not intended as legal or tax advice.

Idaho Minimum Wage Rates

Wage Type

Idaho Rates

Federal Rates

Minimum Wage

 $7.25

$7.25

Tipped Minimum Wage

 $3.35

$2.13

Actual Tip Credit

 $3.90

$5.12

Idaho State Income Tax (SIT) Rates

Idaho's SIT is progressive, meaning it adjusts based on the income level of the employee paying the tax:

Filing Status Income Tax Bracket
[Over X] - [But not over Y]		 2024 Income Tax Rate
Single / Head of Household $1 - $13,850 $0
$13,850 or greater 5.80% of excess over $13,850
Married $1 - $27,700 $0
$27,700 or greater 5.80% of excess over $27,700

 

Additional Idaho SIT Details

Supplemental Withholding Computation

 5.80%

Valid Filing Statuses
  • S = Single
  • M = Married

Exemptions
  • Certain agricultural laborers
  • Those exempt from federal withholdings
  • Native Americans living and earning income on a reservation
  • Nonresident members of the Armed Forces paid for active duty in Idaho
  • Nonresident military spouses
  • Interstate carrier employees

Form W-4

 Form ID W-4*

Reconciliation Frequency

Annual

*The state's tax commission advises employees to complete this form so employers can withhold the correct amount of state income tax from paychecks. 

Idaho State Unemployment Insurance (SUI) Rates

SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.

Idaho SUI Tax Details

Taxable Wage Base

$53,500

Employee Subject to Tax

No

Rates for Experienced Employers

0.352% - 5.40%

Rates for New Employers

1.231%

Effective Period

Calendar Year

Voluntary Contributions Allowed

No

Idaho Workforce Development Fund

0.00% - 0.58%

Idaho State Disability Insurance (SDI) Rates

SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Idaho, however, doesn't require employers to collect an SDI tax.

Miscellaneous Idaho Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Idaho currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Idaho pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Idaho doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.

Paid Family and Medical Leave (PFML) Taxes

The state of Idaho doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

Idaho Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the state's Tax Commission for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details

Tax Commission

Department of Labor

Phone

 (208) 334-7660 (208) 332-3570

Online Registration

 Business Registration System Homepage

Registration Instructions

Online registration is required. Account numbers will be issued in 5-10 days.

Separate account numbers for each tax type will be issued under the combined registration. 

Employer Self-Service Login

 TAP Homepage Employer Portal Homepage

Additional Idaho Payroll Tax Resources

 

This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.

011002000110a-taxservices-fullwidth

Get Taxes Done Right, Without the Stress

We know there's a lot that goes into preparing and filing payroll tax forms. Save time and get support from our expert team. As a Registered Reporting Agent with the IRS, we can help prepare and file all the necessary forms you need to remain compliant - even in the face of changing legislation. Learn more here.

Payroll Tax Services