Key figures
Idaho payroll
2026, with sources
A lean payroll state
Idaho payroll has three state pieces: income tax withholding (a flat 5.3%), unemployment insurance on the first $58,300 of each employee’s wages in 2026, and workers’ compensation insurance from the first employee. There is no state paid leave or disability program, no local income tax, and the minimum wage tracks the federal $7.25.
The 2026 rate array puts employers that aren’t yet experience-rated on the standard rate of 1.000% (0.97% UI contribution plus 0.03% workforce development). Experience-rated employers in the lowest class pay 0.208%.
An example
A two-person Delaware startup hires its first engineer in Boise at $150,000. It registers with the Tax Commission for withholding and with the Department of Labor for unemployment insurance, reports the hire within 20 days, and buys workers’ compensation endorsed for Idaho before the start date. Its 2026 UI cost for that employee is 1.000% of $58,300, or $583; there are no other state employer payroll taxes.
Final pay and new hires
Final wages are due by the earlier of the next regular payday or 10 days after the separation, excluding weekends and holidays, or within 48 hours of a written request. New and rehired employees are reported to the Department of Labor within 20 days of the first day they work for wages.
Deadlines
- Within 20 days of the date of hireNew and rehired employees to the Idaho Department of LaborNew hire report
- QuarterlyUnemployment insurance wage report and contributionsUI quarterly report
The federal baseline
This page covers what Idaho adds. The federal rules underneath it apply here too.
Common questions
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.
Are there local payroll taxes in Idaho?
No. Idaho has no city or county income or payroll taxes, and no state paid leave or disability premiums, so an Idaho paycheck carries federal taxes, Idaho withholding at 5.3% and nothing else at the state level.
Payroll next door
- MTMontana payrollMontana payroll is UI at an industry rate (1.10% for services) plus 0.18% AFT on $47,300, a $10.85 minimum wage, no paid leave premiums, and final pay that can be due immediately.
- NVNevada payrollNo wage tax, but a payroll tax: the Modified Business Tax at 1.17% on quarterly wages above $50,000, alongside ESD unemployment insurance on a $43,700 wage base.
- OROregon payrollOregon payroll layers state withholding, 2.4% new-employer UI on $56,700 and 1% Paid Leave Oregon with transit taxes and, around Portland, Metro and Multnomah County income taxes.
- UTUtah payrollA flat 4.45% income tax, a $50,700 UI wage base with industry-average rates for new employers, the federal minimum wage and a 24-hour final-pay rule.
- WAWashington payrollWashington payroll has no income tax withholding, but carries UI on $78,200, Paid Family & Medical Leave at 1.13%, WA Cares at 0.58% and state-fund workers’ comp, under a $17.13 minimum wage.
- WYWyoming payrollWyoming payroll has no income tax withholding: UI on the first $33,800 at an industry rate, state-fund workers’ comp for extra-hazardous industries, and final pay on the next payday.
How Idaho compares
- No tax on wagesStates with no state income tax on wagesIdaho: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programIdaho: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesIdaho: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
More of the Idaho guide
- AccountingAccounting and state tax in IdahoCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in IdahoSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in IdahoPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in IdahoRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in IdahoCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
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.