Boise, Idaho ~ Boise, Idaho - Governor Brad Little has announced that the unemployment insurance tax rate in Idaho will see a significant decrease of 7.5% in 2026. This decision is expected to save Idaho employers approximately $11 million.

According to Governor Little, this decrease in the tax rate is a result of the state's strong economic growth and business-friendly environment. He stated that Idaho leads the nation in wage growth and is ranked among the top ten states for tax competitiveness. The governor believes that this positive economic momentum will pave the way for a strong future for years to come.

The base unemployment insurance tax rate for 2026 will be reduced by 7.5% from its current rate in 2025, making it the second lowest rate on record since 1980. This means that businesses will only have to pay a base tax rate of 0.729%, which is significantly lower than previous years.

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In addition to this, the taxable wage base, which determines the maximum amount of unemployment insurance taxes per employee, will also see an increase from $55,300 to $58,300 in 2026.

Governor Little also announced that the state's new employer rate will remain at 1.0%, which is currently the lowest rate allowed by federal conformity requirements.

Businesses can expect to receive a letter in the mail within the next week with their updated unemployment tax rates. To keep their rates low, employers are encouraged to help identify fraudulent unemployment insurance activity by reporting it through various channels such as calling (877) 540-8638 or emailing fraud@labor.idaho.gov.

Employers can also report all new hires within 20 days at www.labor.idaho.gov/newhire and respond to information requests on UI claims at www.labor.idaho.gov/sides. By using SIDES, employers can receive electronic notifications instead of mailed letters, which speeds up the process.

A complete list of the 2026 unemployment insurance tax rates for businesses can be found at http://www.labor.idaho.gov/taxrates. Governor Little urges all businesses to take advantage of these lower tax rates and continue to support Idaho's economic growth.

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