The Idaho State Tax Commission continues to modernize the state’s tax system, strengthen public trust, and support taxpayers, local governments, and the Legislature. Over the past year, we completed several major initiatives that improve efficiency, transparency, and taxpayer service — all aligned with our core values of fairness, accountability, integrity and respect.
- Two major software upgrades improved turn-around times, security, and transparency for taxpayers.
- Audit survey results demonstrated strong satisfaction with 96% of respondents reporting a positive experience.
- Fraud activity remained low in Idaho with only 0.02% of income tax returns received being fraudulent.
- Recovered $288 million in unpaid taxes owed to Idaho.
- Answered 83,000 calls from taxpayers who contacted our call center.
What’s New in 2025
Imaging Upgrade
We updated the software for our imaging machine that scans documents like paper returns, payments, and taxpayer correspondence. This upgrade improves the reliability of the scans, which results in fewer returns requiring hand processing. This in turn allows us to process tax returns, refunds, and payments faster and deposit money in the bank quicker.
GenTax Upgrade
We upgraded GenTax, our taxpayer database system, to make it more efficient. This included enhancements to Taxpayer Access Point (TAP) that make it easier for taxpayers to navigate. The result is a better taxpayer experience that ensures more security than paper offers, and that allows real-time access to their information.
Paper Reduction Initiative
The Tax Commission recently stopped sending personalized paper tax returns to businesses with tax permits, instead requiring them to file the returns online through TAP. Filing and paying through TAP is more secure than paper printing and mailing, and it benefits the taxpayer by allowing them to see their accounts in real time.
This move will save the state money in mailing costs that have increased over the last two years. In FY 2025 we sent more than 340,000 personalized returns to businesses with tax permits. For each return not mailed, the Tax Commission saves $1.25 in costs that include printing, postage, toner, envelopes, and paper.
Taxpayers with special needs and concerns about the initiative should contact our call center at (208) 334-7660 in the Boise area or toll free at (800) 972-7660.
Read our news release for more information.
Idaho Parental Choice Tax Credit program
A new law offers a refundable tax credit program that provides nearly $50 million in state funds to help full-time Idaho residents pay for qualifying nonpublic school expenses for their eligible children. Residents can get up to $5,000 per student or $7,500 for each student with a qualifying disability. Although the application process doesn’t start until January 15, 2026, the Tax Commission has made great strides to ensure the program’s success. To date, we’ve:
- Analyzed the bill’s language to determine program requirements.
- Designed new systems to process applications and disburse credits efficiently. This includes updating tax forms and ensuring secure handling of sensitive documents.
- Developed protocols to verify that claimed expenses meet the criteria outlined in the bill, while ensuring that claims are accurate and substantiated.
- Launched a public outreach campaign that includes free webinars and seminars, a Parental Choice newsletter, the My School Choice website, and direct support channels to help Idaho families understand and apply for the credit.
Small Seller Exemption
A new law effective July 1, 2025, exempts small sellers – Idaho residents with less than $5,000 in annual sales – from collecting and forwarding sales tax to the state. While the Tax Commission had a short time frame to prepare for this new law, we had the program ready by its effective date. Our efforts included:
- Updating tax forms and agency systems to ensure accurate administration of the new exemption.
- Providing staff with comprehensive training and reference materials that support consistent and helpful taxpayer assistance.
- Creating outreach materials and guidance to help small sellers understand the change in requirements, including a special webpage, tax.idaho.gov/smallseller.
