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ID H0589
Bill
Status
Introduced
2/4/2026
Primary Sponsor
Steve Berch
Click for details
AI Summary
- Increases Idaho's individual, estate, and trust income tax rate from 5.3% to 5.695% on taxable income over $2,500 (single filers) or $5,000 (joint filers), effective January 1, 2027, then reverts the rate back to 5.3% effective January 1, 2028
- Increases the corporate income tax rate from 5.3% to 5.695% effective January 1, 2027, then returns it to 5.3% effective January 1, 2028, by adding new rate tiers to the existing schedule of historical corporate rate reductions
- Retains existing inflation-adjustment provisions that direct the State Tax Commission to annually adjust income tax thresholds using the consumer price index to prevent inflation-driven tax increases
- Preserves all other existing tax provisions, including the $20 minimum corporate tax (with an exemption for nonproductive mining corporations), S corporation taxation rules, and special treatment of electing small business trusts
- Implements changes in two phases: Sections 1 and 4 (amendments raising rates) take effect January 1, 2027; Sections 2, 3, 5, and 6 (repeals and new replacement sections restoring the 5.3% rate) take effect January 1, 2028
Legislative Description
Amends, repeals, and adds to existing law to revise provisions regarding the rate of income taxes.
TAXATION
Last Action
Reported Printed; Filed in the Office of the Chief Clerk
2/5/2026
Full Bill Text
No bill text available