Idaho veteran taxes

Military retired pay in Idaho

Partly exempttax year 2025Sources 1, 2, 3

Idaho lets a retired member of the U.S. military deduct military retirement benefits if the retiree is classified as disabled, is age 62 or older by the end of the tax year, or is under 62 and was employed during the year with enough income to be required to file a federal return (Idaho Code § 63-3022A). For tax year 2025 the deduction is capped at $48,216 for a single filer or $72,324 for a joint return, reduced by Social Security and Railroad Retirement benefits received; the Tax Commission recalculates the cap each year.

Survivor Benefit Plan annuities

Partly exemptSources 4, 3

Idaho Code § 63-3022A extends the deduction to retirement benefits paid by the United States to the unremarried widow or widower of a retired military member, if the widow or widower is classified as disabled, is age 62 or older, or is under 62 with enough employment income to be required to file a federal return, within the yearly maximum. The Tax Commission says a surviving spouse who receives the deceased spouse’s federal pension and meets those criteria might qualify, and must not have remarried. Neither source names Survivor Benefit Plan annuities or addresses payments to children.

Property tax relief for disabled veterans

Exemption or creditSources 5, 6

Under Idaho Code § 63-705A, a veteran with a 100% service-connected disability, or an individual unemployability rating compensated at the 100% rate, as the VA certifies, receives a reduction of up to $1,500 in property taxes on the homestead (the home and up to one acre of land), or the actual tax if less, with no income limit. The home must be the primary residence with a current homeowner’s exemption, and applications go to the county assessor between January 1 and April 15.

• Veterans with a 100% permanent and total disability do not need to reapply each year; others apply every year.
• The benefit does not reduce solid waste, irrigation or other government fees, and combined with the income-limited Property Tax Reduction program it cannot exceed the actual tax.

Vehicle registration for disabled veterans

Fee waiver or discountSources 7, 8

Under Idaho Code § 49-403, no registration fee is charged for one motor vehicle at a time owned by a veteran receiving VA or military compensation for a 100% service-connected disability, or for loss or permanent loss of use of one or both feet or hands, or loss of sight or virtual blindness in both eyes; veterans entitled to the federal automobile benefit under Public Law 662 (79th Congress) and Public Law 187 (82nd Congress) also qualify. The Idaho Transportation Department issues D.V. plates, and its application says plate fees and registration do not apply.

• Plate: Disabled Veteran plate (with or without the wheelchair symbol), or a Service-Connected Disabled Purple Heart plate; limited to one set; the application asks for a 100% rating letter from the VA.
• Not for vehicles with a registered maximum gross weight over 26,000 pounds.