Retiring in Idaho: how your income is taxed
Idaho is fairly tax-friendly for retirees. On a typical retirement income it ranks #31 of 51 for the lowest state income tax.
The rules in Idaho
- Social Security: Idaho does not tax Social Security benefits.
- Pensions: Private pensions are taxed at Idaho's flat rate. The Retirement Benefits Deduction covers only certain government pensions: CSRS and Foreign Service annuities where eligibility began before 1984, the Idaho Firefighters Retirement Fund, some Idaho city police pensions, and military retirement. It is capped at the maximum Social Security benefit ($48,216 single / $72,324 joint for 2025), minus any Social Security or Railroad Retirement benefits received. Age rules apply (traditionally 65, or 62 if disabled); check current eligibility with the Idaho State Tax Commission.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are fully taxable. No general retirement-income exclusion.
- At 65 and older: Idaho uses the federal standard deduction, including the extra amount at 65, and allows the federal senior deduction (up to $6,000 per person, 2025–2028).
Calculate your Idaho retirement taxes
State income tax in Idaho: $585 a year
In Idaho, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Idaho you'd pay about $585 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,079 (7.0% total).
Idaho ranks #31 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Idaho
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $585 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $3,953 | $2,273 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Idaho's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Idaho in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Idaho come from (IRS migration data, 2022–2023).
Frequently asked questions
Does Idaho tax Social Security?
Not taxed. Idaho does not tax Social Security benefits.
Does Idaho tax pensions?
Taxed. Private pensions are taxed at Idaho's flat rate. The Retirement Benefits Deduction covers only certain government pensions: CSRS and Foreign Service annuities where eligibility began before 1984, the Idaho Firefighters Retirement Fund, some Idaho city police pensions, and military retirement. It is capped at the maximum Social Security benefit ($48,216 single / $72,324 joint for 2025), minus any Social Security or Railroad Retirement benefits received. Age rules apply (traditionally 65, or 62 if disabled); check current eligibility with the Idaho State Tax Commission.
Does Idaho tax 401(k) and IRA withdrawals?
Taxed. 401(k) and IRA withdrawals are fully taxable. No general retirement-income exclusion.
Is Idaho a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Idaho charges about $585 in state income tax, ranking #31 of 51 (lowest tax first).
Related
Sources: tax.idaho.gov, law.cornell.edu, moaa.org. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.