Idaho Publishes Updated Guide to Income Tax Withholding

July 13, 2018 Paul Ogawa

The Idaho State Tax Commission has issued an updated Guide to Income Tax Withholding.

The revision is a routine update of the tables for withholding computation methods for 2018. The change is reflected in the income tax tables used to file individual income tax returns.  

Key revisions to this guide: 

  • Idaho added the 2018 W-4 worksheet as an appendix.  Employees should use the worksheet to estimate their Idaho allowances and any extra state withholding.  This is available here.
  • In the Percentage Computation Method instructions on page 20, Idaho eliminated the employer's requirement to "add 2" for the single filing status with one or more withholding allowances. 
  • Single tables revised for the Wage Bracket Method see page 26. 
  • New tax laws have significantly changes the withholding tables for 2018.  Although the figures are effective for 2018, you don't need to adjust the withholding for the months before the new tables were published.  
  • Idaho now uses an Idaho allowance count on the federal W-4 line 5 to calculate withholding.  The withholding allowances are based on the number of children qualifing for the Idaho Child Tax Credit.  

To review this updated version of the Guide in full, please click here.

About the Author

Paul Ogawa is a Junior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.

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