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:

• Calling (877) 540-8638 or emailing [email protected] to report UI fraud. UI fraud can be also be reported at https://www.labor.idaho.gov/businesses/report-fraud/
• Reporting all new hires within 20 days at www.labor.idaho.gov/newhire. Reporting new hires quickly helps prevent individuals from continuing to receive benefits after they begin working.
• Responding to information requests on UI claims at www.labor.idaho.gov/sides. When employers use SIDES, they get an electronic notification instead of a mailed letter. This speeds up the process.

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