FOR IMMEDIATE RELEASE
December 17, 2025
Boise, Idaho – Governor Brad Little announced today the unemployment insurance tax rate will decrease 7.5% percent in 2026.
“Idaho businesses continue to thrive from our state’s economic strength and business-friendly environment. We lead the nation in wage growth and are a top ten state for tax competitiveness. Idaho’s economic momentum is leading the way for a strong future for years to come,” Governor Little said.
The base unemployment insurance tax rate for 2026 will decrease 7.5% from 2025, saving Idaho employers approximately $11 million. The base tax rate of 0.729% 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 $55,300 to $58,300 in 2026.
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 2026 unemployment insurance tax arrays for businesses can be found at http://www.labor.idaho.gov/taxrates.
