At a glance
- Corporate tax
- 5.3% flat, $20 minimum
- Tax on wages
- 5.3% flat
- Sales tax
- 6% (+ resort city taxes)
- Economic nexus
- More than $100,000 in sales
- Minimum wage
- $7.25/hr
- UI wage base
- $58,300
- New-employer UI rate
- 1.000% (standard rate)
- Paid leave program
- None
- Annual report
- Anniversary month, via SOSBiz
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register with the Secretary of State
Before doing business in IdahoFile a Foreign Registration Statement on SOSBiz ($100 base fee) with a Delaware certificate of good standing dated within 90 days.
Open a withholding account
Before the first Idaho payrollRegister with the Tax Commission for income tax withholding (and a seller’s permit only if you sell taxable goods).
Open a UI account
Before the first Idaho payrollRegister with the Idaho Department of Labor for unemployment insurance.
Get workers’ compensation coverage
Before the first hireWorkers’ compensation must be in place before the first employee is hired; an out-of-state policy needs an Idaho endorsement.
Report new hires
Within 20 days of the date of hireReport new and rehired employees to the Department of Labor.
File the corporate return
15th day of the 4th month after year endFile Form 41 each year; pay the $20 minimum and $10 PBF tax in loss years.
The six areas
- AccountingAccounting and state tax in IdahoIdaho taxes corporations at a flat 5.3% with a $20 minimum, apportions by a single sales factor, and conforms to the Internal Revenue Code as of January 1, 2026, except bonus depreciation.Corporate income tax5.3%
- ReceivablesReceivables and sales tax in IdahoIdaho charges 6% sales tax but excludes SaaS, downloaded and custom software by statute; out-of-state retailers register once Idaho sales exceed $100,000 in 12 months.Sales tax rate6%
- PayablesPayables and contractors in IdahoIdaho requires a copy of every 1099-NEC for services performed in Idaho by the end of February, and charges 6% use tax on untaxed goods but not on SaaS or downloaded software.1099-NEC to IdahoRequired
- PayrollPayroll taxes and employer rules in IdahoIdaho payroll is lean: 5.3% flat withholding, a 1.000% standard UI rate on $58,300, workers’ comp from employee one, the federal minimum wage and no paid leave premiums.Minimum wage$7.25 an hour
- ComplianceCompliance and filings in IdahoA Delaware corporation registers in Idaho for $100, files an annual report each anniversary month on SOSBiz, and files Form 41 by April 15 with at least $20 of minimum tax.Foreign registration$100
- AdvisoryAdvisory: credits and decisions in IdahoIdaho follows federal law closely, including QSBS; its 5% research credit is nonrefundable and, since 2026, can’t be claimed on costs also deducted under §174A.R&D credit5%
Who you register with
- Idaho State Tax CommissionCorporate income tax, withholding, sales and use tax, and 1099 filing
- Idaho Department of LaborUnemployment insurance, new-hire reporting and wage claims
- Idaho Secretary of StateForeign registration and annual reports through SOSBiz
- Idaho Industrial CommissionWorkers’ compensation coverage requirements
- Idaho State Treasurer — Unclaimed PropertyAnnual unclaimed property holder reporting
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Idaho’s neighbors.
- MTMontanaNo sales tax, a receipts-only income tax, and the only state without at-will employment
- NVNevadaNo income tax; a payroll tax called the MBT and a Commerce Tax above $4 million
- OROregonNo sales tax, but two corporate taxes, transit taxes and Portland’s local layer
- UTUtahFlat 4.45% tax after a sixth cut, a $100 minimum, and SaaS taxed where it’s used
- WAWashingtonNo income tax, but B&O on gross receipts, taxable SaaS and IT services, paid leave
- WYWyomingNo income taxes at all; a $60 license tax, state-fund workers’ comp and no tax on SaaS
Common questions
Does Idaho follow the 2025 federal R&D expensing rules?
Mostly. HB 559, signed February 10, 2026, conforms Idaho to the Internal Revenue Code as of January 1, 2026, retroactive to 2025, so domestic research costs incurred from 2025 can be expensed for Idaho as they are federally. Idaho did not adopt the federal transition that lets 2022–2024 costs be deducted early: those keep amortizing for Idaho on their original five-year schedule.
Is SaaS taxable in Idaho?
No. Idaho Code §63-3616 excludes custom programs, software delivered electronically and remotely accessed software from tangible personal property, so a SaaS subscription sold to an Idaho customer is not subject to Idaho sales tax.
Do we file 1099s with Idaho?
If the 1099-NEC was for services performed in Idaho, yes: Idaho requires it, with Form 96 (or a federal Form 1096) by the last day of February. 1099s with Idaho income tax withheld also go with Form 967.
When is a final paycheck due in Idaho?
By the earlier of the next regular payday or 10 days after the separation, weekends and holidays excluded — whether the employee quits or is let go. If the employee asks in writing for earlier payment, it is due within 48 hours of the request, again excluding weekends and holidays.
Does a Delaware corporation need to register in Idaho?
If it is doing business there — an employee working from Idaho is usually enough. It files a Foreign Registration Statement with the Secretary of State ($100 base fee) with a certificate of good standing from Delaware dated within the last 90 days, then an annual report each year by the end of its registration anniversary month.
Is the Idaho research credit still worth claiming?
Less than it used to be. Idaho’s credit is 5% of qualified research done in Idaho above a base amount, nonrefundable, with a 14-year carryforward. But Idaho Code §63-3029G now says research costs a taxpayer deducts or amortizes under §174 or §174A are not eligible for the credit, so a company expensing its research for Idaho can’t also claim the credit on the same dollars.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Idaho State Tax Commission — Business income tax online guide (rates, PBF tax)
- Idaho State Tax Commission — Income tax for corporations
- Idaho State Tax Commission — Combined reporting
- Idaho State Tax Commission — Conformity to the federal Internal Revenue Code
- RSM — Idaho conforms to the One Big Beautiful Bill (HB 559, Feb 2026)
- Idaho Code § 63-3025 — Corporate income tax rate and $20 minimum
- Idaho Code § 63-3024 — Individual income tax rate
- Idaho Code § 63-3027 — Apportionment (single sales factor)
- Idaho Code § 63-3029G — Credit for research activities
- Idaho Code § 63-3616 — Tangible personal property (software exclusions)
- Idaho State Tax Commission — Sales and use tax online guide
- Idaho State Tax Commission — Who needs a seller’s permit
- Idaho State Tax Commission — City (resort city) sales taxes
- Idaho State Tax Commission — Types of withholding forms (Form 96, Form 967, 1099s)
- Idaho Department of Labor — 2026 rate class array
- Office of the Governor — Idaho businesses see another $11 million in tax savings
- Idaho Department of Labor — Report new hires
- Idaho Code § 44-1502 — Minimum wage
- Idaho Code § 45-606 — Payment of wages upon separation
- Idaho Industrial Commission — Employers FAQs
- Idaho Secretary of State — Foreign Registration Statement
- Idaho Code § 30-21-213 — Annual report for Secretary of State
- Idaho Secretary of State — Business services (SOSBiz)
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.