Conformity to Internal Revenue Code (IRC): Idaho conforms to the IRC as of January 1, 2023. Idaho doesn’t conform to bonus depreciation for assets acquired after 2009.
Tax Rate Reduction: Effective January 1, 2023, the individual income tax rate is 5.8%.
Grocery Credit: Increased The grocery tax credit for eligible Idaho residents increased from $100 to $120 starting in tax year 2023. The credit for Idahoans who are 65 and older increased from $120 to $140.
Dependent Care Tax Deduction: Increased The maximum individual tax deduction for dependent care is now $12,000 per year.