Military retirement pay in Idaho
Varies
Does Idaho Tax Military Retirement Pay?
Short answer: Partly. Military retirees who are 62 or older, disabled, or (under 62) working enough to have to file a federal return can deduct military retired pay up to a cap tied to the maximum Social Security benefit. For 2025 the cap is $48,216 single or $72,324 joint, reduced by any Social Security or Railroad Retirement benefits received. The 2025 laws HB 40 and HB 479 dropped the old age 65 requirement for military retirees, effective 2025. The 2026 cap had not been published when we checked; it is indexed annually. Unremarried surviving spouses can also qualify. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion.
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Idaho
Varies
Individuals / Personal Taxes
Partly. Military retirees who are 62 or older, disabled, or (under 62) working enough to have to file a federal return can deduct military retired pay up to a cap tied to the maximum Social Security benefit. For 2025 the cap is $48,216 single or $72,324 joint, reduced by any Social Security or Railroad Retirement benefits received. The 2025 laws HB 40 and HB 479 dropped the old age 65 requirement for military retirees, effective 2025. The 2026 cap had not been published when we checked; it is indexed annually. Unremarried surviving spouses can also qualify. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion.
Business justification
Partly. Military retirees who are 62 or older, disabled, or (under 62) working enough to have to file a federal return can deduct military retired pay up to a cap tied to the maximum Social Security benefit. For 2025 the cap is $48,216 single or $72,324 joint, reduced by any Social Security or Railroad Retirement benefits received. The 2025 laws HB 40 and HB 479 dropped the old age 65 requirement for military retirees, effective 2025. The 2026 cap had not been published when we checked; it is indexed annually. Unremarried surviving spouses can also qualify. Other retirement income: Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions