Idaho Wage and Payroll Tax Facts
October 24, 2023
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
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:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated October 20, 2023. 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 progress, 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] |
2023 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 |
|
|
Exemptions |
|
|
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 |
$49,900 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.207% - 5.40% |
|
Rates for New Employers |
1.00% |
|
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)
The state of Idaho doesn’t require employers to collect tax for paid sick leave, nor does the state have a program providing paid sick 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
- Tax Commission Withholding Taxes Resources
- Department of Labor Business Page
- Department of Labor SIDES Page
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.
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