- 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.
Social Security benefits
While potentially taxable on your federal return, these aren’t taxable in Idaho.
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.
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.