Loading...
2026 rules · verified against Idaho's primary source
Idaho fully exempts military retirement pay from state income tax.
Military retirement pay is fully exempt as of 2025: House Bill 40 (signed March 2025) removed the prior age-65+/disabled-62+ requirement and the Social-Security-offset cap, so military retirement benefits are now deductible regardless of the retiree's (or surviving spouse's) age or disability status. The same bill cut Idaho's flat income tax to 5.3%. (Corrected 2026-08-08 from primary source; the pre-2025 rule capped the deduction near the SS max ~$40,536.)
Treatment
fully exempt
Top marginal rate
5.30%
Source: https://legislature.idaho.gov/sessioninfo/2025/legislation/H0040/ · 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).
More Idaho: all Idaho veteran benefits · military retirement tax in every state · what your pension is worth