In a landmark decision that champions financial freedom and aligns Idaho’s tax policies with sound money principles, the state has officially abolished income taxes on gold and silver. This change, enacted through House Bill 40, represents Idaho’s largest tax cut in state history, promising to benefit taxpayers significantly.

The Details of House Bill 40

Spearheaded by House Speaker Mike Moyle, House Bill 40 was signed into law by Governor Brad Little on March 6, 2025. The new legislation provides a sweeping tax relief plan totaling $253 million for Idaho taxpayers. This includes a reduction in the income tax rate from 5.695% to 5.3%, alongside the introduction of specific exemptions for income derived from precious metals.

Thank you Gov. Little for signing House Bill 40, the single largest tax cut in Idaho history. Giving back the people’s money has and always will be my top priority. pic.twitter.com/TGEMIsGS3L

— Mike Moyle (@Mikeemoyle) March 6, 2025

One of the key provisions in the bill is the ability for taxpayers to exclude certain “net capital gains or losses” that involve precious metal bullion or monetized bullion from their federal adjusted gross income. This exemption adds a layer of protection for investors and enthusiasts of gold and silver, making it easier for these metals to play a constitutional role as legitimate currency.

Let’s give Idahoans more of THEIR money back…

House Bill 40 passes the Senate floor swimmingly.

Thanks for bringing it @Mikeemoyle @josh_idaho @jasonmonksid pic.twitter.com/myrXPO948i

— Brian Lenney™ (@brian_lenney) March 4, 2025

Idaho has long maintained a sales tax exemption on the purchase of precious metals. With the additional exemption for income generated through precious metals sales, the state is paving the way for a robust environment that embraces sound money principles in the face of ongoing inflation.

Support from Key Voices

Speaker Moyle expressed his pride in this new legislation: “I’m proud to help secure another $253 million in income tax cuts for Idaho families. It makes no sense for Idaho to tax gold and silver, the only money mentioned in the U.S. Constitution.”

This decisive move received unyielding support from influential organizations such as the Sound Money Defense League and Money Metals Exchange, reflecting a strong consensus among lawmakers on the importance of protecting the intrinsic value of precious metals.

Political analysts have pointed out that Governor Little’s government appears to be reacting to internal party dynamics, especially with potential primary challengers lining up for the 2026 election. His decision to sign House Bill 40, previously anticipated to fall under his usual veto power, indicates the shifting tides in Idaho’s political landscape.

Jp Cortez, the executive director of the Sound Money Defense League, highlighted the bill’s broader significance: “Taxpayers cannot deduct losses when the purchasing power of the Federal Reserve note declines. Therefore, it would be inequitable to impose income taxes when gold and silver appreciate in nominal value due to currency debasement.”

Idaho now stands proudly as the 14th state without income taxes on gold and silver, joining Alabama and Nebraska, which enacted similar legislation in the previous year. This shift places Idaho side by side with Wyoming, the other state to pass significant sound money legislation in 2025.

With the passage of House Bill 40, Idaho’s current ranking in the 2025 Sound Money Index is poised to improve significantly, potentially breaking into the top five states as a leader in sound money practices.

As of January 1, 2025, taxpayers in Idaho will begin to feel the benefits of these tax cuts, reinforcing the state’s commitment to financial prosperity and the maximization of wealth for all its citizens. This pivotal change not only symbolizes Idaho’s progressive approach towards economic freedom but also reinforces the state’s dedication to fostering an environment conducive to investment and growth in precious metals.

Idaho’s elimination of income taxes on gold and silver is more than just a legislative victory; it marks a critical step towards recognizing the importance of sound money in today’s economy. For Idahoans, it offers an opportunity to embrace the historical value of precious metals while capitalizing on the financial advantages of reduced taxation. As the state moves forward, it sets a compelling example for others to follow, reinforcing the foundational principles of economic liberty and fiscal responsibility.