Idaho Mileage Deduction 2026

Idaho has a flat income tax of 5.3%, recently reduced from 5.69%. Every $1,000 you deduct saves $53 at the state level, on top of your federal savings.

At 15,000 business miles, you save roughly $576 in state taxes on top of about $4,056 federal. That is about $4,632 total.

Idaho also offers a grocery tax credit of $155 per person (plus up to $250 if you submit food sales tax receipts). This is a refundable credit, you receive the full value even if you owe no state tax. It is separate from your mileage deduction but worth knowing about when you file.

How to File

Deduct on federal Schedule C, Line 9 at 72.5¢/mile. Idaho starts with your federal taxable income, so the mileage deduction flows through to your state return. Keep a mileage log with the date, destination, purpose, and miles for each trip. Quarterly estimated payments are required if you expect to owe $1,000 or more.

The state does not require employers to reimburse mileage.

FAQ

Does Idaho's grocery tax credit stack with the mileage deduction?

Yes. They are separate. The mileage deduction reduces your taxable income on Schedule C. The grocery credit is a refundable credit applied after your tax is calculated. You can claim both.

Does my mileage deduction reduce Idaho state taxes?

Yes. Idaho starts with your federal taxable income. Your Schedule C mileage deduction reduces that number directly.

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