The Short Answer
Active-duty pay earned while stationed outside Idaho for 120 consecutive days or more is not taxed; pay earned in-state is taxed at Idaho's 5.695% flat rate. Your base pay is set by the federal pay table — identical to every other state for your rank and years of service. What actually changes in Idaho is your BAH (averaging $1,200/mo without dependents and $1,500/mo with dependents) and how Idaho treats the taxable portion of your pay.
State tax status: ✗ TAXED
2026 Worked Example — E-5, 6 Years, With Dependents in Idaho
Here is how the math actually lands for a mid-career enlisted member stationed in Idaho, built the way I read my own LES. Base pay and BAS are federal; the Idaho BAH figure is the state average.
| Monthly line item | Amount | Taxable? |
|---|---|---|
| Base pay (E-5, over 6 yrs) | $3,874 | Yes (federal + state) |
| BAH with dependents (Idaho avg) | $1,500 | No — tax-free |
| BAS (enlisted) | $476.95 | No — tax-free |
| Gross monthly entitlements | $5,850.95 | — |
| Taxable income (base pay only) | $3,874 | — |
| Est. Idaho state income tax | varies — see notes | — |
Only the $3,874 of base pay is taxable — the $1,976.95 of BAH + BAS is completely tax-free. Run your exact rank, ZIP, and dependency status in the Military Pay Calculator for a precise estimate.
How Idaho Taxes Each Type of Military Pay
Active-Duty Base Pay
Active-duty pay earned while stationed outside Idaho for 120 consecutive days or more is not taxed; pay earned in-state is taxed at Idaho's 5.695% flat rate.
Guard & Reserve Drill Pay
Idaho Guard and Reserve drill pay is generally taxable as ordinary income.
Military Retirement Pay
Military retirement is partially exempt: retirees 65+ (or 62+ if disabled) may deduct up to roughly $45,864 (amount indexed annually); verify the current cap with the ID State Tax Commission.
VA Disability Compensation
VA disability compensation is exempt federally and is not taxed by Idaho.
SCRA & Residency in Idaho
A nonresident airman at Mountain Home AFB is protected by SCRA from Idaho tax on military pay.
This is the single most misunderstood rule in military pay. Your home of record / state of legal residence — not your duty station — generally determines who can tax your military pay. Changing it is a deliberate act, not something that happens automatically when you PCS.
Major Military Installations in Idaho
- Mountain Home Air Force Base
- Idaho National Guard (Gowen Field)
BAH is set by the Military Housing Area covering your duty ZIP. Verify your exact rate at the official DoD BAH lookup.
Official Sources
FAQ — Military Pay in Idaho
Does Idaho tax my military base pay?
Active-duty pay earned while stationed outside Idaho for 120 consecutive days or more is not taxed; pay earned in-state is taxed at Idaho's 5.695% flat rate.
Is my BAH taxed in Idaho?
No. BAH is federally tax-free and is never counted as income for Idaho state income tax, regardless of how Idaho treats base pay.
Does Idaho tax military retirement pay?
Military retirement is partially exempt: retirees 65+ (or 62+ if disabled) may deduct up to roughly $45,864 (amount indexed annually); verify the current cap with the ID State Tax Commission.
I'm stationed in Idaho but my home of record is elsewhere — who taxes me?
A nonresident airman at Mountain Home AFB is protected by SCRA from Idaho tax on military pay.