Does Idaho tax military retirement pay?
Partly taxed
Partly. Military retirement pay can qualify for Idaho's retirement benefits deduction. For 2025 Idaho changed who qualifies: a retired servicemember who is disabled, 62 or older, or under 62 and working enough to have to file a federal return. The deduction has a yearly cap that is reduced by Social Security benefits.
In the state's own words
Copied word for word from the official documents linked below each quote:
“Military retirement pension deduction criteria changed. If you’re a retired servicemember, your pension might qualify for the retirement benefits deduction if you’re any of the following:”
“Idaho offers limited deductions for pensions.”
Other retirement income in Idaho
Yes. Idaho taxes the pensions of residents and part-year residents. It offers limited deductions for some pensions under its Retirement Benefits deduction. The Idaho pension page has the details, and the Idaho Social Security page covers Social Security. No. Idaho does not tax Social Security, even when part of it is taxed on your federal return.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the Idaho State Tax Commission before you file or move.
Other states in the same group
Check our work
The answer above comes from these documents. Follow the link and compare.
- What’s new for 2025 income tax returnsIdaho State Tax Commission. Read on November 13, 2026.
- Specific guidance for individuals: seniors and retireesIdaho State Tax Commission. Read on November 13, 2026.