You must file income tax returns for your business entity if any of the following are true:
- You’re transacting business in Idaho.
- You’re registered with the Idaho Secretary of State to do business in Idaho.
- You have income attributable to Idaho.
- You’re a fiduciary.
Transacting business in Idaho is indicated by, but not limited to, the following activities:
- You own or lease, as lessor or lessee, any property in Idaho.
- You solicit business in Idaho.
- You are a member of a partnership or S corporation with business in Idaho.
- You have any Idaho activity from which you receive, realize or derive income.
- You have an agent — such as a collector, repair person, or delivery person — acting on your behalf in Idaho.
Business income tax rates
The Idaho business tax rate is on taxable income. Below is a history of tax rates:
| Year | Idaho business tax rate is on taxable income |
|---|---|
| 2024 | 5.695% |
| 2023 | 5.8% |
| 2022 | 6% |
| 2021 | 6.5% |
| 2018-2020 | 6.925% |
| 2012-2017 | 7.4% |
| 2001-2011 | 7.6% |
Permanent Building Fund (PBF) tax
Most businesses must pay the $10 PBF tax. These businesses include:
- C corporations must pay the $10 tax.
- Unitary group of corporations must pay $10 for each corporation required to file in Idaho, whether the corporations file individually or the unitary group includes them in a group return.
- S corporations must pay $10 for each shareholder for whom it pays the Idaho income tax due.
- Partnerships must pay $10 for each partner for whom it pays the Idaho income tax due.
- Estates and trusts must pay $10 for each beneficiary for whom it pays the Idaho income tax due.
Business Entities
Review these resources for more in-depth information: