Overview
Idaho uses a percentage method for calculating state income tax withholding. The state has its own Form ID W-4 and rounds tax amounts to the nearest whole dollar.
What Makes Idaho Unique: Idaho has a flat income tax rate of 5.8% as of 2023, replacing its previous multi-bracket system. Employees use a state-specific withholding form.
State Income Tax (SIT)
Idaho’s state income tax is calculated using the state’s percentage method. Employees complete Form ID W-4 with their filing status and total allowances. The state rounds all tax calculations to the nearest whole dollar. Idaho requires both filing status and total allowances to be set for accurate withholding.
| Tax Structure | Percentage method (progressive) |
| State Withholding Form | Form ID W-4 |
| Filing Statuses | S, M, MH |
| Rounding | Nearest whole dollar |
| SUTA Rate | 1.0% default for new employers |
Supplemental Wages
Idaho supports the following supplemental calculation methods. Supplemental wages such as bonuses and commissions will be calculated using the applicable method.
Employer State Unemployment Tax (SUTA)
Your assigned SUTA rate will be based on your company’s experience with unemployment claims. New employers typically start at the default rate of 1.0%.
| Tax Type | Employer-paid only |
| Default New Employer Rate | 1.0% |
| Rate Assignment | Experience-rated; assigned annually by the state |
How to Set Up Idaho Payroll Withholding
Follow these steps to begin withholding Idaho payroll taxes for your employees:
- Obtain your Federal EIN at irs.gov
- Register with the Idaho State Tax Commission at tax.idaho.gov
- Register for SUTA with the Idaho Department of Labor at labor.idaho.gov
- Submit a Netchex tax team request to enable Idaho SIT and SUTA
- Have each employee complete their tax forms with an automated onboarding task in Netchex, digitally storing tax forms
- Configure any additional tax settings in the employee profile
Once setup is complete in Netchex, the system will automatically calculate, withhold, and remit all Idaho payroll taxes on your behalf.
Idaho Payroll Tax Filing Deadlines
The following are general filing and deposit deadlines for Idaho payroll taxes. Deadlines may vary based on your employer size and deposit frequency. Always verify current schedules at IdahoState Tax Commission.
| Tax | Deposit Frequency | Typical Due Date |
| SIT Withholding | Monthly | 20th of the following month |
| SIT Withholding | Quarterly | Last day of month following quarter |
| Annual Reconciliation | Annual | January 31 |
| SUTA | Quarterly | April 30, July 31, Oct 31, Jan 31 |
Note: Deadlines are subject to change. Always confirm current requirements directly with Idaho State Tax Commission at https://tax.idaho.gov/i-1026.cfm.
Resources & Links
The following official resources will help you stay current on Idaho payroll tax requirements:
Frequently Asked Questions: Idaho Payroll Taxes
What is Idaho’s income tax rate?
Idaho has a flat income tax rate of 5.8% as of 2023.
What form do Idaho employees complete?
Employees complete Idaho Form ID W-4, the Employee’s Withholding Allowance Certificate.
What is Idaho’s SUTA wage base?
Idaho’s SUTA wage base is $53,500 per employee per year (2025). Verify at labor.idaho.gov.
Does Idaho have local payroll taxes?
No. Idaho does not impose local payroll taxes.
What is Idaho’s supplemental withholding rate?
Idaho uses a flat supplemental withholding rate of 5.8%.
Disclaimer: This content is provided for general informational purposes only and does not constitute legal, tax, or accounting advice. Netchex does not provide tax or legal guidance and makes no representations regarding the accuracy or applicability of this information. Laws and regulations may change. The information on this page reflects payroll tax guidelines as of March 2026. For the most current requirements, please refer to the Resources & Links section above.
Let Netchex Handle the Complexity
Staying compliant with payroll taxes doesn’t have to be stressful. Netchex automatically calculates, withholds, and files your payroll taxes so you can focus on what matters most — your people.
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