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2026 rules · verified against Idaho's primary source
Idaho partially exempts military retirement pay (up to about $40,536); the rest is taxable.
Military retirement deductible only if recipient is age 65+, or disabled and age 62+; the deductible max is the indexed Social Security maximum benefit (about $40,536 for 2026) and must be reduced dollar-for-dollar by any Social Security / Tier 1 Railroad Retirement benefits. Idaho has a flat 5.3% tax.
Treatment
partially exempt
Exemption up to
$40,536
Top marginal rate
5.30%
Source: https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-retirement-benefits-deduction/ · verified July 2026
Estimated Idaho state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
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