Idaho Governor Brad Little has signed House Bill 40 into law on 6 March 2025, lowering corporate and individual income tax rates from 5.695% to 5.3%.
The legislation also allows veterans to keep more of their military pensions.
“Idaho families and businesses need and deserve to keep more of their hard earned money. It is the right thing to do. Idaho’s continued strength comes from our focus on good government and the Idaho taxpayer. I appreciate my partners in the Legislature for sharing our goal of prioritising tax relief while taking care of the needs of a growing state. As we continue to deliver historic tax relief, we must ensure our budget balances as the Idaho Constitution requires,” Governor Brad Little said.
Idaho leads the nation in tax relief per capita, returning USD 4.6 billion in cuts since Governor Little took office. With House Bill 40 signed, Idaho families and businesses will see even more relief.
The tax cuts will go into force retroactively on 1 January 2025.
