What’s new for 2025 income tax returns

BOISE, Idaho — March 11, 2026 — The Idaho State Tax Commission expects to process over 1.07 million individual income tax returns this year. Taxpayers will see some differences as they file their 2025 returns due to recent tax law changes. Here are some of the highlights.

• Income tax rate decreased. The Idaho individual income tax rate decreased from 5.69% to 5.3%, effective January 1, 2025.
• Food tax credit increased. The food tax credit (formerly known as the Grocery Credit) is now $155 per person. You also can submit receipts for sales tax paid for food to receive a credit up to $250.
• Military retirement pension deduction criteria changed. If you’re a retired servicemember, your pension might qualify for the retirement benefits deduction if you’re any of the following:
  • Classified as disabled.
  • Age 62 or older.
  • Under age 62 and were employed during the year and received sufficient income from such employment to be required to file a federal return.
• Metal bullion not taxable. If you claimed a capital gain from the sale of precious metal or monetized bullion on your federal return, you can subtract the amount from your Idaho taxable income.
• New conformity deductions available. Idaho conforms to federal tax law. That means Idaho’s standard deduction amounts have increased to match the federal amounts. It also means you can now claim an enhanced senior deduction and deductions for tips from wages, car loan interest, and overtime compensation. See the Tax Commission’s March 3 news release for more information.

To save the state money, the Tax Commission has stopped printing and mailing tax booklets. You can download forms and the tax booklet at tax.idaho.gov/IITforms.

Visit tax.idaho.gov to check your refund status, get tax forms, make payments, and find tax help. You can also get help by calling (208) 334-7660 in the Boise area or toll free at (800) 972-7660.

The deadline to file 2025 income taxes is Wednesday, April 15.