Idaho Governor Brad Little has announced that the state’s unemployment insurance tax rate will decrease by 7.5% in 2026. This reduction is expected to save Idaho employers around $11 million next year.
“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 be set at 0.729%, which is the second lowest since 1980. The taxable wage base, which determines how much employers pay per employee, will increase from $55,300 to $58,300 in 2026.
The new employer rate remains at 1.0 percent, which is the minimum allowed under federal requirements.
Employers in Idaho will receive notification of their new unemployment tax rates by mail within the next week. Businesses can also find more information about the updated rates on the Idaho Department of Labor website at http://www.labor.idaho.gov/taxrates.
Employers are encouraged to help keep their rates low by assisting in identifying fraudulent unemployment insurance activity.
