Idaho Payroll Compliance
Every rate, wage base, and threshold Idaho employers need for 2026 — sourced from the State Tax Commission and Dept. of Labor — including a flat tax structure that replaced Idaho's older graduated system.
Minimum Wage & Hours
Idaho’s minimum wage matches the federal floor of $7.25/hour. Idaho’s tipped-wage structure is somewhat unusual: rather than the typical wide cash-wage/tip-credit split seen federally, Idaho splits the two more evenly.
| Item | 2026 Value | Notes |
|---|---|---|
| State minimum wage | $7.25/hr | Matches the federal FLSA floor |
| Overtime rule | 40 hrs/week | Federal FLSA; no separate state daily overtime rule |
| Local wage ordinances | None | No Idaho city or county sets its own minimum wage |
State Income Tax Withholding
Idaho moved to a flat income tax structure in recent tax reform, replacing its older graduated bracket system. Idaho is also one of several states that begins its income calculation from the federal standard deduction, per the Tax Foundation’s 2026 state tax survey.
| Item | 2026 Value | Notes |
|---|---|---|
| Flat tax rate | ~5.3% | Confirm exact current-year figure via the Idaho State Tax Commission |
| Income starting point | Federal standard deduction included | Idaho is one of a handful of states using this approach |
| Required certificate | Form ID W-4 | Idaho-specific; the Tax Commission recommends employees file this for accuracy |
| Local income tax | None | No Idaho city or county imposes one |
Unemployment Insurance (SUI)
Idaho’s SUI program is administered by the Idaho Dept. of Labor. Confirm the current-year wage base and rate range directly with the department, as exact figures could not be independently verified for this edition.
| Item | Value | Notes |
|---|---|---|
| Administering agency | Idaho Dept. of Labor | Quarterly filing, standard schedule |
| Estimated relative burden | Moderate | One published multi-state comparison placed Idaho's UI cost around 0.53% of total wages, mid-range nationally |