Idaho saves businesses another $22 million in taxes

Boise, Idaho - Governor Brad Little announced today the unemployment insurance tax rate will decrease a whopping 20 percent in 2025.

"There's no doubt Idaho is the country's leading success story on how to strengthen businesses and keep taxes low. Idaho has the highest percentage increase of jobs since the pandemic in the nation. Our tax rates continue to go down because of our strong economy. What Idaho is doing is working! We have consistently delivered on our promises to Idaho families and businesses, " Governor Little said.

The base unemployment insurance tax rate for 2025 will decrease 20% from 2024, saving Idaho employers approximately $22 million. The base tax rate of 0.788% is the second lowest rate on record since 1980.

Additionally, the taxable wage base - which determines the maximum amount Idaho employers pay in unemployment insurance taxes per employee - will rise from $53,500 to $55,300 in 2025.

The state's new employer rate remains at 1.0 percent - the lowest rate allowed by federal conformity requirements.

Businesses will receive a letter in the mail in the next week with their unemployment tax rate.

Businesses can keep their rates low by helping identify fraudulent unemployment insurance (UI) activity through:

• Calling (877) 540-8638 or emailing [email protected] to report UI fraud. UI fraud can be also be reported at https://www.labor.idaho.gov/businesses/report-fraud/
• Reporting all new hires within 20 days at www.labor.idaho.gov/newhire. Reporting new hires quickly helps prevent individuals from continuing to receive benefits after they begin working.
• Responding to information requests on UI claims at www.labor.idaho.gov/sides. When employers use SIDES, they get an electronic notification instead of a mailed letter. This speeds up the process.

A complete list of the 2025 unemployment insurance tax arrays for businesses can be found at http://www.labor.idaho.gov/taxrates.