The Idaho Senate voted to adopt the tax cuts from President Donald Trump’s One Big Beautiful Bill, aligning Idaho’s tax code with the federal changes at a projected immediate cost of $155 million to the state.

The decision, which took effect during the 2025-2026 fiscal transition, reflected the Idaho Legislature’s commitment to keeping state taxes low in alignment with the Trump administration’s broader tax reform agenda.

Governor Little initially proposed delaying the adoption until July 1 to manage the fiscal impact, but ultimately signed the bill putting the alignment into effect immediately. The decision passed the Legislature with strong Republican support, though the fiscal impact added pressure to the already constrained state budget.

For North Idaho residents, the federal tax alignment provided additional relief on top of Idaho’s own cumulative income tax reductions. Combined with the state’s flat tax rate, Idaho’s tax burden continued to compare favorably with neighboring Washington and Oregon.