Idaho: Corporate Tax Rate Decrease Enacted

House Bill 380, signed into law on May 10, 2021, reduces Idaho’s corporate income tax rate from 6.925 percent to 6.5 percent. The highest individual income tax rate, which applies to incomes over $5,000 was also reduced from 6.925 percent to 6.5 percent, and the other individual income tax brackets were restructured to effectuate rate reductions. The legislation also establishes the Idaho tax rebate fund that, per the bill’s fiscal note, will return $220 million to Idaho taxpayers. A rebate check will be sent to 2020 personal income tax filers providing a minimum amount of $50 for each taxpayer and dependent or nine percent of income taxes paid in 2019, whichever is greater. House Bill 380 is effective retroactively to January 1, 2021. Please stay tuned to TWIST for future legislative updates.