Property Management Income Taxes In Idaho

Updated August 7, 2026

9 min read

This guide covers how rental and management income is taxed in Idaho: what the state takes, what the IRS takes, who has to withhold on an out-of-state owner, and when each return is due. Every figure is tied to the statute, agency rule, or published guidance that sets it, so you can confirm a rate before acting on it.

State Income Tax On Rental And Management Income

Idaho taxes individual and corporate income at a single flat rate, cut from 5.695% to 5.3% by House Bill 40 in 2025 and retroactive to January 1, 2025. Rental income flows through to the owner's Idaho return. A pass-through entity holding Idaho rental property must withhold Idaho tax for nonresident individual owners, which is the point where a management company's out-of-state owner base most often creates an Idaho filing obligation.

Idaho's individual income tax rate for tax year 2025 is a flat 5.3%, applied to taxable income above $4,811 for single and married filing separate filers and above $9,622 for married filing jointly and head of household filers. The 2024 rate was 5.695%. (Idaho State Tax Commission, Individual Income Tax Rate Schedule)
House Bill 40, signed in the 2025 legislative session, reduced the income tax rate for individuals and businesses from 5.695% to 5.3%, returning an estimated $253 million to Idaho taxpayers. (House Bill 40, 2025 Idaho Legislature)
A pass-through entity must withhold Idaho income tax for nonresident individual owners with at least $1,000 of Idaho distributable income, computed at the highest individual tax rate on the owner's share of Idaho-source distributable income, and remitted using Form PTE-01 by the 15th day of the fourth month following the end of the tax year. (Idaho State Tax Commission, Pass-Through Entities guide)
Instead of withholding, a nonresident owner may sign Form PTE-NROA, a nonresident owner agreement, and file an Idaho return directly. If the owner then fails to file and pay, the Tax Commission can assess the pass-through entity for the tax due. (Idaho State Tax Commission, Pass-Through Entities guide, Form PTE-NROA)
A pass-through entity may instead file a composite return, paying Idaho income tax for nonresident owners on the entity's own return at the corporate tax rate and reporting the tax paid for each owner on Form ID K-1. (Idaho State Tax Commission, Pass-Through Entities guide, composite return)
Partnerships and S corporations may elect to be taxed as an Affected Business Entity (ABE), paying Idaho tax at the entity level at corporate rates with owners receiving a credit. The election is made each year the entity wants to file as an ABE, and ABE tax is due April 15 for calendar-year filers. (Idaho State Tax Commission, Pass-Through Entities guide, Affected Business Entity election)

Withholding And Employer Taxes

Idaho withholding frequency is driven by dollar thresholds rather than a lookback period, and everything reconciles on Form 967 at the end of January. Unemployment insurance is administered by the Idaho Department of Labor, where the 2026 wage base rose to $58,300 while the base rate fell. For owners rather than employees, the withholding to watch is Form PTE-01 on nonresident pass-through owners.

Idaho law requires employers to withhold income tax from employees' wages, and withholding also applies to pensions, bonuses, commissions and gambling winnings. (Idaho State Tax Commission, Withholding)
Idaho withholding filing cycles are set by amount withheld: semimonthly if at least $25,000 per month or at least $300,000 in a 12-month period, monthly if less than $25,000 a month and more than $750 a quarter, quarterly if $750 or less each quarter, and annual if less than $750 annually. (Idaho State Tax Commission, Withholding Filing, filing cycles)
Idaho withholding payments are submitted on Form 910. Quarterly filers pay by the last day of the month following the payment period, and annual filers pay by the last day of January. (Form 910 Instructions, Idaho Withholding Payment)
Form 967, the annual withholding report, must be filed regardless of the Form 910 filing cycle. Form 967, W-2s and 1099s are due on or before the last day of January. (Idaho State Tax Commission, Filing Form 967)
The Idaho unemployment insurance taxable wage base rose from $55,300 in 2025 to $58,300 in 2026. The 2026 base tax rate is 0.729%, a 7.5% decrease from 2025 and the second lowest base rate on record since 1980. The new employer rate remains 1.0%. (Office of the Governor, Idaho businesses see another $11 million in tax savings, December 17, 2025)
Idaho unemployment insurance quarterly reports are due following the end of each calendar quarter, for example the quarter covering January, February and March is due April 30. (Idaho Department of Labor, Unemployment tax rates and reporting)

Federal Obligations

Federal obligations for Idaho rentals are the standard set. Owners report on Schedule E, depreciate residential buildings over 27.5 years, and a manager paying vendors and remitting rent carries the 1099 filing duty, at $600 for 2025 payments and $2,000 for payments after December 31, 2025.

Individuals report rental real estate income and expenses on Schedule E (Form 1040), Supplemental Income and Loss. (About Schedule E (Form 1040), Supplemental Income and Loss)
Residential rental property placed in service after 1986 is depreciated under MACRS using the straight line method over a 27.5 year recovery period, and land is never depreciable. (IRS Publication 527, Residential Rental Property)
For payments made during 2025 the Form 1099-NEC and Form 1099-MISC reporting threshold is $600. The One, Big Beautiful Bill Act raised the statutory threshold under section 6041(a) to a base amount of $2,000 for payments made after December 31, 2025, indexed for inflation for calendar years after 2026. (Internal Revenue Bulletin 2026-19, information reporting threshold change)
Idaho requires W-2s and 1099s to be filed with the state along with Form 967 by the last day of January, so the federal and Idaho information return calendars align. (Idaho State Tax Commission, Filing Form 967)

Filing Deadlines

Idaho income tax returns follow the federal April 15 date. Sales tax and travel and convention tax returns are due the 20th of the following month for monthly filers. Property tax splits December 20 and June 20, withholding reconciles January 31, and nonresident pass-through withholding is due the 15th day of the fourth month after year end.

Idaho tax year 2025 individual income tax returns are due Wednesday, April 15, 2026. (Idaho State Tax Commission, What's new for 2025 income tax returns)
Form 850 sales tax returns are due the 20th day of the following month for monthly filers, within 20 days after quarter end for quarterly filers, by July 20 and January 20 for semiannual filers, and by January 20 for annual filers. (Idaho State Tax Commission, Sales and Use Tax Filing)
Form 1152, the Travel and Convention Tax Return, is due by the 20th of the month following the tax period for monthly filers. (Idaho State Tax Commission, Travel and Convention Tax)
Form 967 and accompanying W-2s and 1099s are due on or before the last day of January. (Idaho State Tax Commission, Filing Form 967)
Pass-through entity withholding for nonresident owners on Form PTE-01 is due by the 15th day of the fourth month following the end of the tax year, generally April 15 for calendar year entities. ABE tax is likewise due April 15 for calendar-year filers. (Idaho State Tax Commission, Pass-Through Entities guide)
Property tax is paid in full or in first and second halves, with the first half due December 20 and the second half due June 20. (Idaho State Tax Commission, Understanding Property Taxes)

Recent Changes Worth Tracking

Effective January 1, 2025: House Bill 40 reduced the Idaho income tax rate for individuals and businesses from 5.695% to 5.3%, the largest income tax cut in state history at roughly $253 million. (House Bill 40, 2025 Idaho Legislature)
Effective Tax year 2025: For 2025 Idaho returns, the grocery credit increased to $155 per person with an option to submit receipts for up to $250 of sales tax paid on food, standard deduction amounts now align with the federal amounts, and new deductions are available for tips from wages, overtime compensation, car loan interest and a senior enhancement. (Idaho State Tax Commission, What's new for 2025 income tax returns)
Effective January 1, 2026: The Idaho unemployment insurance taxable wage base increased from $55,300 to $58,300 and the base tax rate fell 7.5% to 0.729%, saving Idaho employers roughly $11 million. The new employer rate remains 1.0%. (Office of the Governor, Idaho businesses see another $11 million in tax savings, December 17, 2025)

Tax is one half of Idaho compliance. See our guide to Idaho property management laws and regulations for licensing, trust account, and disclosure rules.

This page is one half of the picture. See our guide to the Idaho taxes a management company pays directly for the rest.

Keeping This Straight

Tax rates and thresholds move more often than most operators expect, and the figures circulating in older articles go stale quickly. Check any rate against its citation before you quote it to an owner, and re-check them at the start of each tax year.

This guide is a starting point for professional managers, not tax or legal advice. For a specific filing, work with a CPA familiar with Idaho rental property, and confirm current figures with the Idaho State Tax Commission or the IRS.