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26 August 2026

Idaho issues revised income tax withholding tables/formula for immediate use

The Idaho State Tax Commission has updated its Table for Percentage Method Withholding  and the Table for Wage Bracket Withholding to reflect the expiration of the state's child tax credit of $205 per qualifying child which applied for tax years 2018 through 2025 under Idaho Code Section 63-3029L.

The tax rate of 5.3% (unchanged) now applies to annual wages over $16, 100 (previously $15,000) for single filers and heads of household and to wages over $32,200 (previously $30,000) for married filers.

Employers are instructed to apply these changes immediately.

In 2025, Idaho Governor Brad Little approved the fourth consecutive and largest personal income tax cut in the state's history, lowering the tax rate from 5.695% to 5.3%. (See Tax Alert 2025-0705.)

Ernst & Young LLP insights

Employers should implement the updated Idaho withholding formula as soon as possible and suggest that employees review their Idaho ID W-4 in consideration of this 2026 income tax change.

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Contact Information

For additional information concerning this Alert, please contact:

Workforce Tax Services - Employment Tax Advisory Services

Published by NTD’s Tax Technical Knowledge Services group; Lori E. Ruppert, legal editor

Document ID: 2026-1829

 

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