Idaho businesses see another $11 million in tax savings

Boise, Idaho – Governor Brad Little announced today the unemployment insurance tax rate will decrease 7.5% percent in 2026.

“Idaho businesses continue to thrive from our state’s economic strength and business-friendly environment. We lead the nation in wage growth and are a top ten state for tax competitiveness. Idaho’s economic momentum is leading the way for a strong future for years to come,” Governor Little said.

The base unemployment insurance tax rate for 2026 will decrease 7.5% from 2025, saving Idaho employers approximately $11 million. The base tax rate of 0.729% is the second lowest rate on record since 1980.

Additionally, the taxable wage base — which determines the maximum amount Idaho employers pay in unemployment insurance taxes per employee — will rise from $55,300 to $58,300 in 2026.

The state’s new employer rate remains at 1.0 percent – the lowest rate allowed by federal conformity requirements.

Businesses will receive a letter in the mail in the next week with their unemployment tax rate.

Businesses can keep their rates low by helping identify fraudulent unemployment insurance (UI) activity through:

A complete list of the 2026 unemployment insurance tax arrays for businesses can be found at http://www.labor.idaho.gov/taxrates.