By Jennifer J. Troyer
On March 6, 2025, Idaho Governor Brad Little signed legislation lowering the corporate and personal income tax rates, allowing certain net capital gains or losses to be removed from federal adjusted gross income, and expanding the subtraction for retirement benefits paid by the federal government. (L. 2025, H40, effective retroactive to 01/01/2025.)
Corporate income tax rate.
The corporate income tax rate is reduced from 5.695% to 5.3%.
Personal income tax rate.
The personal income tax rate is reduced from 5.695% to 5.3%.
Capital gains or losses.
Corporate and personal income taxpayers may add or subtract the amount of net capital gains or losses that meets the definition of precious metal bullion or monetized bullion included in the taxpayer’s federal adjusted gross income.
Retirement benefits.
The retirement benefits paid by the federal government to a retired member of the U.S. military services or the unremarried widow or widower of that member may be subtracted from taxable income regardless of the age or disability classification of the retired member or of the unremarried widow or widower of the retired member, provided that a person receiving the retirement benefits who is not disabled and has not attained age 62 by the end of the tax year was employed during the tax year and received sufficient income from the employment to file a federal income tax return. Previously, these retirement benefits could be subtracted only if the person was 65 years old or was 62 years old and classified as disabled.
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