Idaho minimum wage in 2026 (and 2027)

Idaho's rate is a state law that mirrors the federal one

Unlike Alabama or Mississippi, which have no minimum wage statute at all, Idaho has a state law with a basic rate of $7.25, the figure the DOL state table lists. The practical result is the same hourly floor, but the state law lets Idaho set its own rules where it chooses, most visibly for tipped workers.

Where federal law adds something Idaho's rate does not, the federal rule applies to employers the FLSA covers: time-and-a-half once a worker passes 40 hours in a workweek, and the $4.25 youth wage for workers under 20 during their first 90 days. Read the federal minimum wage rules for who the FLSA covers.

The $3.35 tipped wage

Idaho employers can pay tipped staff a cash wage of $3.35 an hour, per the DOL tipped wage table. That is $1.22 more than the federal $2.13 and leaves a tip credit of up to $3.90 an hour toward the $7.25 minimum. If tips do not cover the difference, the employer makes it up.

Cross into Oregon and there is no tip credit at all: servers in Ontario or Portland get the full Oregon rate in cash. A restaurant group running sites on both sides of the border needs two very different labor budgets; Oregon's minimum wage page has the three Oregon rates.

$7.25 an hour in weekly, monthly and annual terms

• Per week: 40 x $7.25 = $290.00
• Per year: 2,080 x $7.25 = $15,080.00
• Per month: $15,080.00 / 12 = $1,256.67

Idaho's neighbors split sharply. Utah also pays $7.25 and Wyoming's FLSA-covered employers pay $7.25, while Washington's minimum wage is $17.13 and Montana's is $10.85 for larger businesses in 2026. Employers in Coeur d'Alene or Lewiston may compete with Washington wages for workers who can commute across the line.

What an Idaho employer adds to wages

A new Idaho employer with one full-time $7.25 worker ($15,080.00 a year) pays:

• FICA, 7.65%: $1,153.62
• FUTA, 0.6% on $7,000: $42.00
• Idaho unemployment, new employer 1.000% (0.970% UI plus 0.030% workforce development) on wages under the $58,300 base: $150.80

Total $1,346.42, so the full-year cost is $16,426.42 before workers' compensation. Nothing else applies at state level: Idaho runs no paid family leave or disability insurance payroll program. Idaho's $58,300 unemployment wage base is high for a low-wage state, which means the tax keeps applying all year rather than stopping after the first few thousand dollars; compare it on state unemployment tax rates for 2026. Registration and income tax withholding are on Idaho payroll taxes.

Payroll for a small Idaho business

With a low wage floor and a simple tax setup, Idaho payroll is easy to run in software. The risks are tip shortfalls under the $3.35 cash wage and overtime on long weeks. Gusto's Simple plan starts at $49 a month plus $6 per person (checked October 16, 2026). See payroll services ranked and payroll pricing compared for cheaper and fuller options.