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Unemployment Tax Rate

All new employers except cost-reimbursement employers, begin with the same standard unemployment insurance tax rate for at least the first six calendar quarters. The standard rate is established by law and can vary depending on economic conditions and the size of the employment security fund.

1.395

Standard Rate - 2017

$37,800

Taxable Wage Base - 2017

1.488

Standard Rate - 2016

$37,200

Taxable Wage Base - 2016

1.585

Standard Rate - 2015

$36,000

Taxable Wage Base - 2015

What do these numbers mean?

Standard rate

All new employers except cost-reimbursement employers, begin with the same standard unemployment insurance tax rate for at least the first six calendar quarters. The standard rate is established by law and can vary depending on economic conditions and the size of the employment security fund.

Depending on the employer’s experience with the unemployment insurance program, this initial standard rate may increase or decrease over time. Changes in the rate depend on the employer’s experience rating and its relationship to the experience ratings of all other Idaho employers. Rates are computed annually based on fiscal year July 1 through June 30 and are assigned each calendar year with a Notice of Tax Rate mailed in December.

Experience factors

An employer’s experience rate is ranked by calculating the employer’s reserve ratio. This ratio is calculated by subtracting the employer’s accumulated benefit payments from the employer’s accumulated tax payments and then dividing by the employer’s average taxable payroll. Average taxable payroll is the average of up to four fiscal years depending on how long the employer has paid wages as provided by Idaho Code §72-1351.

Accumulated Total Taxes – Accumulated Total Benefits = Reserve Ratio
Average Taxable Payroll

An employer has a positive reserve ratio when total taxes paid exceed the total unemployment benefits charged to that employer’s account. An employer has a negative reserve ratio when benefits charged exceed taxes paid. Each year the department makes two lists, one for positive-rated employers and one for negative-rated employers. These lists rank employers by reserve ratio so each employer may be assigned to a rate class. Those with the highest positive reserve ratios are assigned the lowest tax rates, while negatively rated employers pay taxes at substantially higher rates. For example, in 2007 employers in the best positive-rate class were assigned a tax rate of 0.372 percent and would pay only $112.34 for each employee who makes at least the $30,200 wage base. The worst positive-rate class was assigned a tax rate of 1.240 percent, resulting in a tax of $374.48 when multiplied by the $30,200 wage base. The best negative-rate class was assigned a rate of 2.232 percent, which when multiplied by the $30,200 wage base results in a tax of $674.06, while those in the worst rate class pay at the rate of 5.400 percent or $1,630.80 when multiplied by $30,200.

Eligibility for a reduced rate

To be eligible for a tax rate that is lower than the standard rate, an employer must have established a positive reserve ratio, filed all reports, paid all money due prior to Sept. 30 and participated in the system at least six calendar quarters prior to the computation date of June 30 as provided by Idaho Code §72-1319.

Tax array tables

2017 Tax Array
2016 Tax Array
2015 Tax Array
2014 Tax Array
2013 Tax Array
2012 Tax Array
2011 Tax Array
2010 Tax Array
2009 Tax Array
2008 Tax Array
2007 Tax Array


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