Active-duty and reserve pay
Military pay earned while stationed outside Idaho for 120 consecutive days or more is not taxed.
An E-5 with over 6 years of service earns $49,320 a year in basic pay. If those conditions are met, Idaho does not tax it. If not, the full $49,320 counts as Idaho income. Housing and food allowances are never taxed by any state.
Military retired pay
Military retired pay can qualify for Idaho's retirement benefits deduction from age 62, or earlier if disabled, up to a yearly cap.
Your state of legal residence decides
Military pay is taxed by your state of legal residence, usually the state you lived in when you joined or one you later adopted by changing your records, not by the state where you are stationed. This comes from the Servicemembers Civil Relief Act. Spouses can choose to use the member's state of legal residence for their own income too.
See your total pay with state tax
Questions
Does Idaho tax military pay?
Idaho exempts military pay only in certain cases, mainly when you are stationed outside the state. Military pay earned while stationed outside Idaho for 120 consecutive days or more is not taxed.
Does Idaho tax military retirement pay?
Military retired pay can qualify for Idaho's retirement benefits deduction from age 62, or earlier if disabled, up to a yearly cap.
Is BAH taxed in Idaho?
No. BAH and BAS are not taxable income for federal or state tax in any state.
Which state taxes me if I am stationed in Idaho?
Under the Servicemembers Civil Relief Act, your military pay is taxed only by your state of legal residence, not the state where you are stationed. If Idaho is not your legal residence, Idaho does not tax your military pay.