Search Category: Income Tax
Withholding Forms
Withholding Guides
Withholding Recordkeeping
Withholding records
Your withholding records should include:
- Taxable wages
- Idaho income tax withheld
- Amount paid
- Date paid
- Penalty or interest, if included with payments
Payroll records
You must keep your payroll records for at least four years. They should include:
- Name, address, and Social Security number of each employee
- Dates of employment
- Dates and amount of all wage payments and taxes withheld
- Hours and location of work
- A federal Form W-4 for each employee (and a Form ID W-4, if available)
- Canceled payroll checks
- Copies of all W-2s and 1099s
- Federal Form I-9, Employment Eligibility Verification
Employees’ unclaimed or uncashed payroll checks
The Unclaimed Property Act requires that you try to locate the owner of any money you hold. If you can’t locate the owner within a year, you must file an unclaimed property holder report and turn the money over to the Unclaimed Property Section of the State Treasurer’s Office for safekeeping.
Withholding Laws & Rules
Income tax withholding
| Topic | Laws and rules |
|---|---|
| State Withholding Tax On Percentage Basis Withholding, Collection and Payment of Tax | Idaho Code section 63‑3035 |
| State Withholding Tax for Farmers | Idaho Code section 63‑3036 |
| Information returns | Idaho Code section 63‑3037 Income Tax Rule 830 |
| Requirements Of An Idaho Withholding Account Number | Income Tax Rule 870 |
Agency Contacts for Employers
Internal Revenue Service
Federal Tax Withholding, FUTA, FICA, IRS Publication 15, Circular E, Employer’s Tax Guide
Boise office: 550 W. Fort St., Boise ID 83724
(800) 829-4933
Idaho Department of Labor
Boise office: 317 W. Main St., Boise ID 83735
(800) 448-2977 toll free or (208) 332-3576 in the Boise area (Employer Services)
(208) 332-3579 (Wage payment labor law issues)
(208) 332-3570 (Unemployment Insurance, Job Service)
Idaho Industrial Commission
State Workers Compensation Law, Industrial Accident Insurance
Main office: 11321 W. Chinden Blvd, Boise Idaho 83714 (Building #2)
(800) 950-2110 toll free or (208) 334-6000 in the Boise area
U.S. Citizenship and Immigration Services (USCIS)
(Under Homeland Security Dept.)
Employment Eligibility Verification
Boise office: 1185 S. Vinnell Way, Boise ID 83709
(800) 375-5283 toll free or (208) 685-6600 in the Boise area
Idaho Secretary of State
Business DBAs, Articles of Incorporation, UCC
Boise office: 450 N. 4th St., Boise ID 83702
(208) 334-2300
Small Business Administration
General information for businesses and employers
Boise office: 380 E. Parkcenter Blvd., Ste. 330, Boise ID 83706
(208) 334-9004
Withholding Basics
You must have an Idaho withholding account if you have an employee earning income while in Idaho. This applies to all employees, including agricultural, household help, and family members.
You must also have a withholding account if you choose voluntarily to withhold Idaho income tax for an Idaho resident working outside of Idaho.
Employer defined
Apply for a Withholding Account
You must have a federal Employer Identification Number (EIN) before you apply for an Idaho withholding account. Apply for an EIN with the IRS.
After you have your EIN, visit our Idaho Business Registration Information guide. Follow the instructions to register for an Idaho withholding account.
Use the same employer name and EIN you’ll use to prepare your employees’ W-2s.
Not transferable
An Idaho withholding account number isn’t transferable.
If you’re a new owner of an existing business, don’t use a return or payment voucher that Idaho issued to the former owner of the business. You must apply for a new withholding account.
Business changes
You must apply for a new withholding account if you acquire a business, get a new federal EIN, or change your business entity (e.g., a sole proprietorship becomes a corporation).
Address changes or account cancellations
You can change your mailing address or cancel your account by using one of these methods:
- Use TAP or the online request form.
- Mark the appropriate box on Form 910 or Form 967. If you’re changing the address, draw a line through the address on the form, and write in your new address.
- Write us a letter. If you’re changing the address, include your name, account number, old address, and new address. If you’re canceling the account, include your name, account number, and the date when you want us to cancel the account. Mail your letter to: Account Registration & Maintenance, Idaho State Tax Commission, PO Box 36, Boise ID 83722-3220.
- Scan the letter (see previous item) and email it to: processing@tax.idaho.gov
Business Income Tax Basics
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 |
|---|---|
| 2025 | 5.3% |
| 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:
Business Income Tax Filing and Paying
Due date
File your return and pay any tax on or before the 15th day of the fourth month following the close of your tax year.
- For a calendar year filer, this is April 15.
- If the last day for filing a return falls on a Saturday, Sunday, or legal holiday, the return is on time if you file it on the next business day.
Please contact us if you forgot to file a tax return.
E-File
The Tax Commission, with the IRS, provides electronic filing of federal and state corporation income tax returns.
These software companies provide electronic filing of business income tax forms
Form ID K-1
Use Form ID K-1 to provide the partner, shareholder, or beneficiary of a pass-through entity with information required to complete the pass-through owner’s Idaho income tax return.
Bonus Depreciation
Depreciation is a federal income tax deduction that lets a taxpayer recover the cost of capital expenditures over time. See bonus depreciation.
Combined reporting
See Combined Reporting.
Payment options
You can pay your business income tax in one of three ways:
- Include payment when filing your return.
- Pay securely online with Quick Pay.
- Pay through your Taxpayer Access Point (TAP) account.
- Visit tax.idaho.gov/epay for more information about other electronic payments.
- Pay by mail. Fill out the following form and mail with your payment: Form ID-VP – Income Tax Voucher Payment.
Extension
Need more time to file? See if you qualify. See valid extensions for filing.
A valid extension means you can avoid a penalty for filing late. There aren’t any extensions allowing you to pay late. You’ll owe interest on any payments made after the original due date.
Business Income Tax Forms
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