This bill amends the Idaho Code to revise the income tax rates for individuals, estates, trusts, and corporations. Specifically, it updates Section 63-3024 to change the tax rate for individuals, estates, and trusts from five and three-tenths percent (5.3%) to five and six hundred ninety-five thousandths percent (5.695%) for taxable income over $2,500, and for joint filers, the rate is similarly adjusted for income over $5,000. Additionally, the bill repeals the existing provisions in Section 63-3024 and Section 63-3025, replacing them with new sections that establish the updated tax rates and provisions.

Furthermore, the bill outlines a schedule for corporate tax rates, starting at seven and six-tenths percent (7.6%) and gradually decreasing to five and three-tenths percent (5.3%) by January 1, 2025, with subsequent adjustments. The new corporate tax structure will also be effective from January 1, 2027, while the individual tax changes will take effect on January 1, 2028. The bill aims to ensure that inflation does not lead to tax increases by allowing the state tax commission to adjust income tax thresholds based on the consumer price index.

Statutes affected:
Bill Text: 63-3024, 63-3025