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.
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 |
Other Taxes & Obligations
Idaho does not currently impose significant additional state-level payroll taxes beyond SIT and SUTA. This keeps payroll relatively streamlined compared to states with multiple layers of tax obligations.
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: Idaho State Tax Commission
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