State retirement taxes · 2026
Does Idaho tax retirement income?
Short answer: Yes — everything except Social Security. Idaho does not tax Social Security benefits. A large deduction exists only for specific public pensions (CSRS, Idaho police and fire, military), reduced by Social Security.
What’s taxed in Idaho
2026 rules.
- Social SecurityNot taxed
- Idaho does not tax Social Security benefits.
- PensionsTaxed
- Most pensions are taxed; only certain federal, Idaho police and firefighter, and military pensions get a deduction at 65+.
- IRA & 401(k) withdrawalsTaxed
- IRA and 401(k) withdrawals are fully taxable.
- Military retirement payPartly taxed
- Military retirement qualifies for the Retirement Benefits Deduction (capped and reduced by Social Security). From 2025 you qualify if disabled, 62 or older, or under 62 and working with income high enough to require a federal return.
- Income tax rate5.3% flat
- A flat 5.3% on taxable income above a zero bracket — $4,811 single and $9,622 joint in 2025.
Does Idaho tax Social Security?
Idaho does not tax Social Security benefits.
Social Security and Railroad Retirement benefits are not taxable in Idaho, even when part is taxable on your federal return.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in Idaho?
Most pensions are taxed; only certain federal, Idaho police and firefighter, and military pensions get a deduction at 65+.
The Idaho Retirement Benefits Deduction (Form 39R) covers federal civil service pensions under CSRS/FSRDS (not FERS), the Idaho firefighters’ fund, certain Idaho police funds and military retirement. You must be 65 or older, or disabled and 62+. The 2025 maximum was $48,216 single and $72,324 joint, reduced by the Social Security and Railroad Retirement benefits you received; the 2026 maximum is not yet published. Private pensions and other states’ pensions do not qualify.
Public vs. private pensions: Only the listed public plans qualify for the deduction; private and other-state pensions are fully taxable.
Are IRA and 401(k) withdrawals taxed in Idaho?
IRA and 401(k) withdrawals are fully taxable.
They do not qualify for the Retirement Benefits Deduction.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in Idaho?
Military retirement qualifies for the Retirement Benefits Deduction (capped and reduced by Social Security). From 2025 you qualify if disabled, 62 or older, or under 62 and working with income high enough to require a federal return.
What is Idaho’s income tax rate?
A flat 5.3%.
A flat 5.3% on taxable income above a zero bracket — $4,811 single and $9,622 joint in 2025. The 2026 zero-bracket amount is indexed and not yet published. No 2026 rate change was enacted.
Standard deduction and exemptions
Idaho uses the federal standard deduction (it conforms to the federal tax code as of January 1, 2026), including the federal extra amount for 65+ or blind — $1,600 per box, or $2,000 if single or head of household, in 2025.
What tax breaks do seniors get in Idaho?
Idaho allows the federal $6,000 enhanced senior deduction (2025–2028). The Retirement Benefits Deduction applies at 65+ (62+ if disabled). The Food Tax Credit was $155 per person for 2025; people 65+ who don’t have to file can claim it on Form 24.
What changed for 2026?
HB 559 (signed February 10, 2026, retroactive to January 1, 2025) brought in the bigger federal standard deduction, the senior deduction and the tips, overtime and car-loan deductions. The 5.3% rate dates from 2025 (HB 40). 2026 bills to cut the rate (H0589) or add a senior food credit (H0605) were not enacted.
The 5.3% rate is unchanged for 2026; the 2026 indexed amounts (zero bracket, retirement deduction cap) are not yet published.
What we couldn’t confirm
- Idaho’s 2026 Retirement Benefits Deduction maximum and 2026 zero bracket are recalculated each year and not yet published; we show 2025 amounts.
How Idaho compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- IdahoThis pageMixedSocial Security Not taxedTop rate: 5.3% flat
- MontanaLess friendlySocial Security TaxedTop rate: 5.65% top
- NevadaTax-free retirement incomeSocial Security Not taxedTop rate: None
- OregonLess friendlySocial Security Not taxedTop rate: 9.9% top
- UtahMixedSocial Security Partly taxedTop rate: 4.45% flat
- WashingtonTax-free retirement incomeSocial Security Not taxedTop rate: None
- WyomingTax-free retirement incomeSocial Security Not taxedTop rate: None
State tax is half the picture — check the federal side
Idaho retirement tax questions
Is Idaho tax-friendly for retirees?
We rate Idaho “Mixed” for 2026. Idaho does not tax Social Security benefits. A large deduction exists only for specific public pensions (CSRS, Idaho police and fire, military), reduced by Social Security. The top income tax rate is 5.3%.
Are required minimum distributions (RMDs) taxed in Idaho?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow Idaho’s rules for those accounts. IRA and 401(k) withdrawals are fully taxable.
Is military retirement pay taxed in Idaho?
Partly. Military retirement qualifies for the Retirement Benefits Deduction (capped and reduced by Social Security). From 2025 you qualify if disabled, 62 or older, or under 62 and working with income high enough to require a federal return.
What is Idaho’s income tax rate for 2026?
A flat 5.3% on taxable income above a zero bracket — $4,811 single and $9,622 joint in 2025. The 2026 zero-bracket amount is indexed and not yet published. No 2026 rate change was enacted.
Sources for Idaho
Primary sources only. We re-check them whenever an agency publishes new figures.
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