Idaho State Tax Commission

Idaho State Tax Commission

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.

Forms/publications

Deductions for retirement benefits

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.

Idaho Firemen

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.

Servicemember

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.

Income tax

  • 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.

Property tax

More tax information for retirees and seniors

Laws and rules

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Last updated April 24, 2013

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