Idaho 529 tax deduction in 2026
In Idaho the deduction belongs to whoever writes the check, not only to the account owner, and it has to be used by December 31.
Idaho tax saved on this contribution
$318
5.3 % of what you put in comes back on your 2026 return.
| Subtracted from state income | $6,000 |
| Your state marginal rate | 5.30 % |
| Cap that applies this year | $12,000 |
| Back per $1,000 contributed | $53 |
Idaho: Idaho taxpayers may deduct contributions to IDeal accounts up to $6,000 per year per individual taxpayer ($12,000 married filing jointly); excess cannot be carried forward; contributions must be made by December 31 of the tax year; any contributor (not only the owner) who is an Idaho taxpayer may deduct. Read on 2026-10-19. No federal deduction exists for 529 contributions.
| Taxable income | Marginal rate | Tax saved |
|---|---|---|
| $50,000 | 5.30 % | $318 |
| $100,000 | 5.30 % | $318 |
| $200,000 | 5.30 % | $318 |
| $400,000 | 5.30 % | $318 |
Worked out by Radif Partners · How we calculate · Idaho rule read on October 19, 2026, brackets of tax year 2025 · not tax advice
Idaho taxpayers can deduct up to $6,000 a year of contributions to IDeal, the state's college savings program, or $12,000 on a joint return, and the right is not reserved to the account owner: a grandparent or an aunt who files in Idaho and deposits into a child's IDeal account can claim it too. The cap is counted per taxpayer, not per child, contributions must land by December 31, and anything above the cap is lost for tax purposes rather than carried forward. Idaho has not published its 2026 rate schedule, so the savings on this page use the 2025 schedule: nothing on the first $4,811 of taxable income single ($9,622 joint), 5.3 % above. On that basis a couple at $96,000 filling the joint cap saves $636. Rolling money to another state's plan or to an ABLE account brings back the deductions of the rollover year and the year before.
| Benefit for contributions | Deduction |
|---|---|
| Cap | $6,000 single, $12,000 joint per taxpayer |
| Another state’s plan counts | No, in-state plan only |
| State plans (official names, no recommendation) | IDeal - Idaho College Savings Program |
| Account balance limit | $500,000 |
| K-12 withdrawals qualified for state tax | Yes |
| 529 to Roth IRA rollover qualified | Yes |
| Student loan payments qualified | Yes |
| Add-back on a rollover to another state’s plan | Yes |
Grandparents and relatives can claim it
The IDeal disclosure statement says any contributor who is an Idaho taxpayer may deduct, not only the owner of the account. That is unusual, and it changes who should make the deposit. A widowed grandmother with $41,000 of Idaho taxable income who puts $3,500 into her grandson's account deducts the full amount and saves $186 on her own return, while the parents keep their own $6,000 or $12,000 of room for their deposits. Each taxpayer has a separate cap, so the family's total deductible amount rises with each relative who files in Idaho.
A relative giving to an IDeal account
Idaho tax saved on this contribution
$186
| Subtracted from state income | $3,500 |
| Your state marginal rate | 5.30 % |
| Cap that applies this year | $6,000 |
| Back per $1,000 contributed | $53 |
A cap per taxpayer, used by December 31
The limit does not change with the number of children. A couple with three children on one joint return still deducts at most $12,000 in total. Unlike states that accept spring deposits for the prior year, Idaho requires the contribution to be made by December 31 of the tax year, and amounts beyond the cap cannot be carried into later years. Idaho Code 63-3022H and the Tax Commission instructions could not be read for this page; the amounts and conditions come from the IDeal disclosure statement, the state plan's own document.
Why the 2025 schedule, and what a zero band does
Idaho's 2026 schedule was not published on the day this page was checked, and a 2026 bill to change the rate is not confirmed. The figures here apply the 2025 schedule, the latest one published. Under it, the first $4,811 of a single filer's taxable income is taxed at zero. That matters for low incomes: a part-time worker at $9,000 who deposits $6,000 can only save tax on the slice above the zero band, $222, even though the whole deposit is deducted. Above the band, every deducted dollar is worth 5.3 %.
Federal changes as IDeal applies them
An IDeal supplement reflecting the 2025 federal law lists the wider K-12 expenses, capped at $20,000 a year from 2026, and postsecondary credential costs as qualified expenses, with earnings used for them free of Idaho income tax. Student loan repayments and Roth IRA rollovers are also described as free of Idaho tax. No Tax Commission guidance could be read on any of these points, so the plan is the only source.
The two-year look-back on rollovers
Idaho's rollover rule is measured in years rather than in dollars moved: shifting an IDeal account to another state's plan or to an ABLE account requires recapture of the amounts deducted in the year of the rollover and in the prior taxable year. A couple who deducted $12,000 in each of those two years would add back $24,000. A non-qualified withdrawal is added to Idaho income up to the contributions deducted before plus earnings not already in federal adjusted gross income.
Idaho recapture after two full years
Idaho tax if the deductions come back
$1,272
| Amount added back | $24,000 |
| Your state marginal rate | 5.30 % |
IDeal stops taking deposits once a beneficiary's accounts reach $500,000, according to the June 2024 disclosure statement; later supplements were not found to change it, though that was not checked exhaustively.