Does Idaho tax pensions and retirement income?
Taxed, with narrow exceptions
Yes. Idaho taxes the pensions of residents and part-year residents. It offers limited deductions for some pensions under its Retirement Benefits deduction.
In the state's own words
Copied word for word from the official document linked below each quote:
“By federal law, Idaho taxes your pension if you’re an Idaho resident or part-year resident.”
“Idaho offers limited deductions for pensions.”
And Social Security?
No. Idaho does not tax Social Security, even when part of it is taxed on your federal return. The Idaho Social Security page quotes the rule.
Federal tax still applies
Whatever Idaho does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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 this document. Follow the link and compare.
- Specific guidance for individuals: seniors and retireesIdaho State Tax Commission. Read on November 12, 2026.