Tax Commission News Release
Tax Commission helps Idahoans keep bigger paychecks by changing withholding tables
BOISE, IDAHO — May 14, 2012 — The Idaho State Tax Commission has updated the state’s withholding tables online, in response to the recent passage of Idaho legislation that lowered the top income tax rate for individuals.
House Bill 563 reduced the top individual income tax rate from 7.8 percent to 7.4 percent. This law is retroactive to January 1, 2012.
“Idaho received a lot of interest from software developers and tax professionals who wondered whether we planned to change our withholding tables in the wake of the new law,” said Doreen Warren, administrator of the Tax Commission’s Revenue Operations Division.
“We think taxpayers would rather have more money in their pocket than have it withheld by the state,” she said, “so we changed the withholding tables to prevent people from having more tax withheld as a result of the rate change.”
With the new income tax rates, a married couple with two children, filing a joint return with an adjusted gross income of $45,000, will save about $62 in taxes. A married couple filing jointly, with no children and an adjusted gross income of $65,000, will save about $51. And a single filer with $25,000 in adjusted gross income and no dependents will save about $26 in taxes for the year.
The adjusted withholding tables are available in the Tax Commission’s online UPDATED Guide to Idaho Income Tax Withholding at tax.idaho.gov (choose the first link under “Most Popular Forms” on the home page). For more information, call the Tax Commission at (800) 972-7660 toll free or 334-7660 in the Boise area.