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Another round of income tax cuts could be coming to Idahoans next year

Otto Kitsinger
/
Associated Press
House Speaker Mike Moyle (R-Star) is working on cutting taxes in Idaho to the tune of $350 million to $400 million this year. His latest bill would drop the state's personal income tax rate to 5.3%

House Speaker Mike Moyle (R-Star) is making good on his promise to cut taxes beyond the governor’s proposed $100 million during his state of the state address earlier this month.

Moyle introduced House Bill 40 Thursday morning, which would cut Idaho’s personal and corporate income tax rates by nearly four-tenths of a percent.

If approved, the rate would drop from 5.695% to 5.3% for anyone earning more than $4,674 as a single filer.

All told, the package is estimated to cost $253 million.

“It puts the money back in the citizens’ pockets,” said Moyle. “It makes businesses that come here look to Idaho and say, ‘Alright, the rate’s down farther. It’s more competitive with other states.’ It is a draw for the state of Idaho.”

Certain veterans would see an extra bonus under the plan.

“If you’re younger and you want to come back and continue to work, we’ll give you an exemption on your retirement also,” he said.

Specifically, military veterans younger than 62, regardless of disability classification, who earn enough money to be required to file a federal tax return would avoid paying taxes on their retirement benefits.

Lastly, Moyle’s plan would exempt capital gains taxes on gold and silver purchases.

House Minority Leader Steve Berch (D-Boise) said he likes the proposed cut for veterans. But he said the legislature should put the bill on ice until they have a better sense of the state budget.

“We can talk about how much money we want to take off the table, but first, to make a decision, I’d like to understand what our fiscal obligations are to know if we can afford this,” Berch said.

Other bills to cut Idaho’s sales tax, as well as lower county property taxes, are expected to be introduced soon, according to Moyle.

Copyright 2025 Boise State Public Radio

I cover politics and a bit of everything else for Boise State Public Radio. Outside of public meetings, you can find me fly fishing, making cool things out of leather or watching the Seattle Mariners' latest rebuilding season.

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