Idaho Revises Withholding Tables, No Retroactive Withholding

Effective for wages paid on or after January 1, 2023, the Idaho State Tax Commission (STC) has issued revised wage bracket and percentage method withholding tables. The revised tables are due to legislation that lowered personal income tax rates and decreased the number of tax brackets from four to two [STC, Press Releases, 5-17-23 and 5-18-23].

Employers should use the revised withholding tables going forward but do not need to adjust withholding going back to the beginning of the year. An error was found and corrected in the wage bracket withholding tables (for monthly – married persons) so employers should make sure to use the version revised as of May 18, 2023.

Also effective January 1, 2023, the supplemental wage tax rate has also been reduced to 5.8% from 6%.

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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.