Governor Brad Little signed House Bill 380 into law Monday, providing Idahoans $220 million in immediate one-time income tax rebates and $163 million in ongoing income tax relief.
Combined with another tax conformity bill earlier this session, Idaho achieved more than $435 million in tax relief for Idaho citizens – the single largest tax cut in state history.
The Governor’s move makes good on a commitment he made to Idahoans earlier this year – to cut taxes and boost Idahoans’ prosperity while keeping our tax rates competitive and our business climate vibrant.
“Curbing government spending and returning taxpayer dollars should be the perpetual mission of public servants,” Governor Little said in his 2021 State of the State and Budget Address.
The one-time tax relief was achieved through Governor Little’s “Building Idaho’s Future” plan. The plan uses Idaho’s record budget surplus to provide Idahoans historic tax relief and make strategic investments in transportation, education, broadband, water, capital construction, and other critical areas to propel our state forward.
House Bill 380 also simplifies the tax code, cutting the number of income tax brackets from seven to five. It also lowers the top rate to 6.5-percent, making the state more competitive for existing businesses and more conducive to attracting business from elsewhere.
“I appreciate my partners in the Legislature for sharing my commitment to tax relief for our citizens. In Idaho, we’re able to achieve historic tax relief because we responsibly manage our budgets. The strength of our economy proves fiscal conservatism works,” Governor Little added.
