Idaho Minimum Wage 2026

Idaho Minimum Wage After Tax in 2026

A full-time Idaho worker at $7.25 an hour grosses $15,080 a year. After $0 in federal income tax, $1,154 in FICA and $0 in state income tax, take-home pay is about $13,926 a year, or $1,161 a month and $268 a week.

Idaho Minimum Wage 2026: $7.25 Since 2009

Idaho's minimum wage has been $7.25 per hour since 2009, when the federal rate last increased. The state has maintained this alignment with the federal floor for 17 consecutive years. Idaho adopted a flat income tax in 2022 and cut the rate to 5.3% under House Bill 40 in 2025, replacing a prior progressive bracket system. The 5.3% flat rate applies to all taxable income for Idaho residents.

A full-time Idaho minimum wage worker earning $15,080 gross takes home approximately $13,926 after FICA and Idaho's 5.3% flat state income tax. Monthly net is roughly $1,161. Idaho's flat rate sits mid-pack among Western states, meaning Idaho workers at the minimum wage retain less than workers in neighboring Nevada (no income tax), Wyoming (no income tax), or Oregon (different structure but higher minimum wage).

Boise's Rapid Growth and the Minimum Wage Gap

Boise has been one of the fastest-growing metropolitan areas in the United States over the past five to seven years. Population growth driven by in-migration from California, Oregon, and Washington has pushed housing costs dramatically upward. The median home price in Boise exceeded $400,000 as of 2026, and one-bedroom apartment rents in desirable neighborhoods average $1,200 to $1,500 per month. Against this backdrop, the $7.25 minimum wage creates severe housing unaffordability for minimum wage workers in the Boise metro area.

Technology companies, including significant growth from Micron Technology (one of Idaho's largest employers), have established a tech sector in Boise that pays well above minimum wage. The service economy surrounding this tech sector -- restaurants, retail, childcare, cleaning services -- operates primarily at or modestly above the minimum.

Idaho Tipped Minimum Wage: $3.35/hr

Idaho sets its tipped minimum wage at $3.35 per hour, which is meaningfully above the federal tipped minimum of $2.13. This higher tipped floor provides additional base pay certainty for Idaho's tipped workers, though total compensation must still reach at least $7.25. Idaho's resort and tourism economy -- centered around ski areas, rivers, and outdoor recreation -- employs substantial numbers of tipped hospitality workers who benefit from this higher tipped floor compared to workers in states using the federal $2.13 rate.

Agriculture: Potato Farming and Worker Exemptions

Idaho is the nation's leading potato-producing state, and agriculture remains a major employer in the Magic Valley region around Twin Falls, Burley, and Rupert. Agricultural workers may be subject to different minimum wage provisions depending on farm size and employment classification under federal FLSA rules. H-2A agricultural guest workers performing potato harvest and other seasonal work may be subject to the USDA Adverse Effect Wage Rate rather than the state minimum. The Idaho State Department of Agriculture and the Idaho Department of Labor share oversight of agricultural wage compliance.

Ski Resort Industry: Sun Valley and Beyond

Idaho's ski resort economy -- Sun Valley in Blaine County, Bogus Basin near Boise, Schweitzer Mountain in Sandpoint -- generates significant seasonal employment in ski instruction, lift operations, rental equipment, lodging, and food service. Entry-level resort positions often start near minimum wage, though resort areas with housing shortages (particularly Sun Valley, where the cost of living is extremely high) struggle to attract workers at $7.25 and typically pay well above that level voluntarily.

Idaho vs. Washington: A $10/hr Gap at the Border

The contrast between Idaho's $7.25 minimum wage and Washington State's minimum wage of approximately $17.13 per hour in 2026 creates one of the largest state minimum wage differentials at any state border in the nation. Workers in the Lewiston, Idaho / Clarkston, Washington metro area -- two cities separated only by the Snake River -- face a nearly $10 per hour wage gap based solely on which side of the river their employer is located. Many Clarkston-area residents cross into Lewiston for work; the wage differential is a persistent economic factor in that border community.

Frequently Asked Questions