Income Tax for Seniors and Retirees

  • Idaho residents must pay tax on their total income, including income earned in another state or country.
  • Part-year residents must pay tax on all income they receive while living in Idaho, plus any income they receive from Idaho sources while living outside of Idaho.
  • Nonresidents pay tax only on income from Idaho sources.

We have guides to help you learn more about Idaho Residency Status and Idaho Source Income.

Social Security benefits

While potentially taxable on your federal return, these aren’t taxable in Idaho.

Pensions

By federal law, Idaho taxes your pension if you’re an Idaho resident or part-year resident. If you’re a part-year resident, you’ll include your pension for the months you reside in Idaho on your Idaho return.

Idaho offers limited deductions for pensions. See the Idaho Retirement Benefits deduction.

Other retirement income

Idaho has exemptions for these sources of retirement income:  

  • Benefits that the Railroad Retirement Board pays
  • Canadian Social Security benefits (OAS, QPP, and CPP)

The federal government might still tax these income sources.

Grocery credit

Find out if you qualify for the Grocery Credit, even if you don’t have to file an Idaho income tax return. This credit provides relief for some of the sales tax you pay on groceries.

IDeal

Idaho’s college savings program, can help you plan and save to pay for a family member’s higher education while lowering the Idaho income tax you owe. Learn more about this college savings program.

Withholding

Make sure you’re not surprised by a tax bill.

Estates and Taxes

Idaho has no gift tax or inheritance tax, and its estate tax expired in 2004.

Tax identity theft

We have several resources to help you protect your identity.

Our Identity Theft page lists what to do about your taxes if you think you’ve been targeted.