Idaho Enacts Largest Income Tax Cut in State History

Governor Brad Little, alongside House and Senate leadership, signed House Bill 40 today, enacting the largest income tax cut in Idaho’s history. The new legislation delivers an additional $253 million in tax relief, furthering the state’s commitment to returning money to its residents.

As part of Governor Little’s KEEPING PROMISES plan, the bill reduces Idaho’s income tax rate for individuals and businesses from 5.695% to 5.3%. It also includes provisions allowing military veterans to retain more of their pensions.

“Idaho families and businesses deserve to keep more of their hard-earned money. It is the right thing to do,” Governor Little stated. “Our continued strength comes from a focus on good government and the Idaho taxpayer. I appreciate my partners in the Legislature for prioritizing tax relief while ensuring we meet the needs of our growing state.”

House Speaker Mike Moyle emphasized the significance of the tax cut, calling it “the people’s money, not ours in government.” He reaffirmed his commitment to continued tax relief, saying, “Giving back the people’s money has always been and will remain a top priority of mine as Speaker.”

Senate Pro Tem Kelly Anthon echoed the sentiment, highlighting the impact on both families and military veterans. “Time and time again, Idaho’s leaders have demonstrated that in times of prosperity, we will do the right thing and give back more of what was earned,” he said.

Since Governor Little took office, Idaho has led the nation in tax relief per capita, returning $4.6 billion to taxpayers. With the passage of House Bill 40, Idaho families and businesses will now see even greater financial relief.

By: DNU staff