Idaho recently enacted legislation updating how the state conforms to federal tax law under the new tax bill. These changes are retroactive to January 1, 2025, and may affect your Idaho income tax return.

Because Idaho adopted most of the federal changes made by the new tax bill:

• Certain new federal deductions may now also apply to your Idaho return. Examples may include changes related to tip income, overtime pay, or certain senior deductions.
• Idaho taxable income calculations may change for some taxpayers.
• Some business depreciation rules may still differ from federal treatment.

Important – Filing Guidance

The Idaho State Tax Commission has not yet released final guidance on how these changes must be reported on Idaho returns.

If you believe your Idaho return is impacted by the new tax bill:

• You may want to wait to file your Idaho return until the state releases official guidance.
• We will update the program as soon as the Idaho State Tax Commission provides guidance.

Already Filed Your Idaho Return?

We are also waiting for guidance from Idaho as to whether:

• Taxpayers will need to file an amended return, or
• The state plans to automatically adjust affected returns.

We will provide updates as soon as additional information becomes available.

For updates directly from the state, visit the Idaho State Tax Commission website.

Note  This new tax bill, was signed into law on July 4, 2025. The One Big Beautiful Bill Act (OBBB or OB3) is now also being referred to by lawmakers as the Working Families Tax Cut Act. You may see one or both names used, but they refer to the same set of tax changes.