Conformity to Internal Revenue Code (IRC): Idaho conforms to the IRC as of January 1, 2024. Idaho doesn’t conform to IRC section 85, Unemployment Compensation, is applied as in effect on January 1, 2020.
Tax Rate Reduction: Effective for the 2025 Idaho tax return, the flat income rate will be reduced from 5.695% to 5.3%. (January 1, 2024, the individual income tax rate was 5.695% for the 2024 state tax return).
Deduction/Credit Burden of Proof: Evidence that shows a taxpayer's right to claim a tax deduction or credit includes a credit card statement (or other document from a financial institution) along with a notarized, sworn statement that an expense was for a qualified deduction purpose.
Grocery Tax Credit: Retroactive to January 1, 2025, this credit to offset sales tax paid on grocery purchases will increase from $120 to 155 per person.