Updated October 16, 2026. Quick answer: Idaho deducts only listed retirement benefits (civil service annuities of employees who established eligibility before 1984, Idaho firefighter and qualifying Idaho city police fund benefits, and military retirement benefits), and the Form 39R instructions say “Benefits paid out of the PERSI Base Plan don’t qualify”; the documents do not name 403(b) or 457(b) plans.
State retirement-income forms, line by line: Idaho Form 39R.
Idaho at a glance
| Item | What the documents say |
|---|---|
| How the state treats 403(b) and 457(b) withdrawals | The documents read describe no deduction for these plans |
| Do the state’s documents name these plans? | The documents read name neither 403(b) nor 457(b) plans |
| Retirement exclusion or credit | Retirement benefits deduction of up to $48,216 (single) or $72,324 (married filing jointly) for 2025, for listed benefits only |
| Public-employee pension rule | Only listed civil service, firefighter and police benefits; PERSI Base Plan benefits do not qualify |
| Rate in the documents read | 5.3% from January 1, 2025 |
| Changed for 2026? | The documents read describe no change to the deduction |
What the Idaho documents say
The Form 39R instructions list the benefit types that qualify and cap the 2025 deduction at $48,216 for a single filer and $72,324 for married filing jointly, reduced by Social Security and railroad retirement benefits received. For civil service, firefighter and police benefits the deduction requires age 65, or age 62 and disabled; retired military members instead qualify if disabled, age 62 or older, or under 62 and employed with enough income to be required to file a federal return.
The instructions print the rate: “Effective January 1, 2025, the individual income tax rate is 5.3%”.
Withholding and federal tax
Whether a state withholds is a separate rule: see state withholding on retirement withdrawals. Federal rules: 403(b) withdrawal rules and 457(b) withdrawal rules. The IRS says pension and annuity payments from a qualified employer plan have “all or some portion of the amounts you receive may be taxable”.
What the documents do not say
- The documents read do not name 403(b) or 457(b) plans.
- They say nothing about an Idaho deduction for distributions from a private-sector or non-listed public plan.
Common mistakes
- Assuming Idaho’s rule for a 401(k) or IRA also covers a 403(b) or 457(b): read whether its documents name the plan.
Related: whether Idaho taxes 401(k) and IRA withdrawals, Idaho retirement taxes, whether Idaho taxes pensions, 403(b) withdrawal rules, 457(b) withdrawal rules, and state withholding on retirement withdrawals.
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Answer againSources
- Form 39R Instructions 2025 (EIN00046): https://tax.idaho.gov/wp-content/uploads/forms/EIN00046/EIN00046_03-02-2026.pdf
- Section 63-3022A, Deduction of certain retirement benefits: https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3022A/
- IRS Tax Topic 410, Pensions and annuities: https://www.irs.gov/taxtopics/tc410
Sources: the primary documents linked above, read on October 16, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.