Seniors and Retirees
Generally, all income received by an Idaho resident, regardless of the source, is subject to Idaho income tax. However, there are some tax exemptions and deductions for certain benefits, including:
- Social Security
- Railroad Retirement Board
- Canadian Social Security (OAS or CPP)
Some seniors and retirees may also qualify for property tax reduction, easier filing for grocery credit refunds, help with filing income tax returns, and other tax benefits.
- Form 40, Idaho Individual Income Tax Return
- Form 43, Idaho Part-Year Resident & Nonresident Income Tax Return
- Individual Income Tax Instructions for Forms 40, 43, 39R, 39NR, 44, and Tax Tables
- Form 39NR, Idaho Supplemental Schedule for Form 43, Nonresident and Part-Year Resident Returns Only
- Form 24, Idaho Grocery Credit Refund
- Property Tax Reduction Brochure (commonly called "Circuit Breaker")
- Property Tax Reduction Application
- Idaho's Property Tax Deferral Program Brochure
- Power of Attorney - POA, a form to legally authorize another person to represent you for your Idaho tax-related concerns.
If you’re age 65 or older, or if you’re disabled and age 62, Idaho offers a deduction for qualifying retirement benefits. Taxpayers using the “married filing separate” filing status aren’t eligible for this benefit. The following are the types of benefits that qualify for this deduction (Most PERSI benefits don't qualify):
Civil Service Employees
Retirement annuities paid by the United States to a retired civil service employee or the unremarried widow of the employee if the recipient is age 65 or older, or disabled and age 62 or older. Annuities paid to a retired federal employee under the Federal Employees Retirement System (FERS) don’t qualify for the deduction.
Retirement benefits paid by the Public Employee Retirement System of Idaho (PERSI) relating to the Firemen's Retirement Fund to a retired fireman or the unremarried widow of a retired fireman if the recipient is age 65 or older, or disabled and age 62 or older. Benefits paid out of the PERSI Base Plan don't qualify for the deduction.
Policemen of an Idaho city
Retirement benefits paid from the policemen’s retirement fund of a city within Idaho to a retired policeman or the unremarried widow of a retired policeman if the recipient is age 65 or older, or disabled and age 62 or older. For example, benefits paid out of the city police retirement funds for the cities of Coeur d'Alene, Lewiston, and Pocatello may qualify for the deduction. Similarly, benefits paid by PERSI relating to the old Idaho Falls policemen's retirement fund may qualify for the deduction. Benefits paid out of the PERSI Base Plan don't qualify for the deduction.
Retirement benefits paid by the United States to a retired member of the U.S. military service or the unremarried widow of a member if the recipient is age 65 or older, or disabled and age 62 or older.
- See our Free Tax Help page that lists where the elderly and low-income with simple returns can get free tax aid close to home. Trained volunteers help with tax return preparation and filing at sites sponsored by the IRS and AARP.
- Find out how you can get an Idaho Grocery Tax Credit refund — even if you aren’t required to file an income tax return — for you, your spouse, and your dependents.
- Part-year residents and snowbirds must file an Idaho income tax return if their gross income from all sources while a resident and gross income from Idaho sources while a nonresident is more than $2,500. See our Individual Income Tax page for more information.
- See our Property Tax Reduction (“Circuit Breaker”) program to see if you qualify for a reduction of your property taxes.
- See our Idaho Property Tax Deferral program to see if you qualify to postpone paying the taxes on your primary Idaho residence and up to one acre of land.
- See our Identity Theft page to learn how you can protect your confidential tax information.
- Watch How to get your payment applied correctly and follow our YouTube channel.
- Read the Idaho medical savings account brochure about saving for medical expenses while lowering the Idaho income tax you owe.
- Learn about IDeal, Idaho's college savings program, a 529 plan to save and pay for higher education for a grandchild or other family member, while lowering the Idaho income tax you owe.
- Forgot to file?
- Contact us if you need help filing your taxes.
- Income Tax Law: Chapter 30, Income Tax
- Income Tax Administrative Rules [PDF]
- Any proposed or temporary rules can be seen through this page.