Retirement income in Idaho
Varies
Does Idaho Tax Retirement Income?
Short answer: Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion. The 2026 maximum is indexed to the Social Security wage base;.
Government pensions: Taxpayers 65+ (or 62+ and disabled) may deduct certain retirement benefits: federal CSRS (not FERS), Idaho firefighters' retirement fund, and certain police retirement benefits. For 2025 the maximum was $48,216 single / $72,324 joint, reduced by Social Security received. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
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.
Retirement income in Idaho
Varies
Individuals / Personal Taxes
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion. The 2026 maximum is indexed to the Social Security wage base;.
Business justification
Yes. Private pensions and 401(k)/IRA withdrawals are taxed at Idaho's flat rate with no general retirement exclusion. The 2026 maximum is indexed to the Social Security wage base;. Government pensions: Taxpayers 65+ (or 62+ and disabled) may deduct certain retirement benefits: federal CSRS (not FERS), Idaho firefighters' retirement fund, and certain police retirement benefits. For 2025 the maximum was $48,216 single / $72,324 joint, reduced by Social Security received. Pensions, traditional IRA and 401(k) withdrawals are taxable federally either way; Roth withdrawals after 59½ (5-year rule met) are tax-free.
Category
- Personal Tax Deductions