BOISE, Idaho — Gov. Brad Little signed HB436, the largest tax cut in state history, into law Friday.
The bill will provide $600 Million in tax cuts and rebates. It offers a one-time tax rebate of $350 million, returning about 12% of 2020 Idaho personal income tax $75 for each taxpayer and dependent, according to the bill’s statement of purpose. Plus, about $251 Million in ongoing income tax relief starting in the fiscal year 2023.
The legislation also will consolidate the income tax brackets from five brackets to four, and lowers rates to 1%, 3%, 4.5% and 6% retroactive to January 1, 2022.
House Bill 436 is part of Gov. Brad Little's “Leading Idaho” plan for the $1.9 billion budget surplus.
Republican lawmakers overwhelmingly back the proposal, but Democrats say it does not do enough to help the Idahoans who need it the most.