Taxes
As the rising cost of living continues to put real financial pressure on Utahns, the Utah House of Representatives has passed common-sense measures that provide meaningful relief and empower Utahns to keep more of what they earn.
Over the last six years, the Legislature has steadily lowered the state income tax by 11%, lowering the rate from 4.95% to 4.45%. These cumulative tax cuts save Utah families hundreds of dollars each year.
2021 - Nearly $100 million in taxpayer savings
Offered an income tax credit for taxable social security.
Offered an income tax credit for military retirement income.
Increased the value of the income tax credit for dependents.
2022 - Over $215 million in total reductions
Reduced the income tax rate to 4.85 percent
Expanded the social security tax credit
Implemented an earned income tax credit.
2023 - Over $520 million in total reduction
Reduced the individual and corporate income tax rates to 4.65 percent
Added an additional Utah personal exemption in the year of a qualifying dependents birth
Expanded eligibility for the social security tax credit
Modified the earned income tax credit
Expanded the adoption tax credit
Reduced the tax on motor fuel
2024 - Over $215 million in total reduction
Reduced state income tax rates from 4.65% to 4.55%
Raised the maximum age of a child dependent for whom an individual taxpayer may claim a child tax credit from four years old to five years old.
2025 - Over $150 million in total reduction
Expanded eligibility for the social security benefits tax credit
Reduced state income tax rates from 4.55% to 4.50%
Enacted a income tax credit for employer-provided childcare for both individuals and corporations
Expanded the child tax credit for dependents from between one and five years old to also include those under one year old.
2026 - Over $330 million in total reduction
Reduced the income tax rate from 4.5% to 4.45%
Expended eligibility for the child tax credit
Expanded tax credits to off-site childcare facilities and increased the amounts employers could claim.
Reduced the gas tax by 15%
In addition to lowering the income tax, we expanded the Child Tax Credit to benefit more families, broadened the Child-Dependent Exemption to include children up to age four, and made childcare more affordable and accessible with tax credits to businesses that provide childcare for employees. We also reduced the Social Security Tax by eliminating social security tax for those earning up to $90,000 and lowered the state gas tax by 15%, providing real relief at the pump for all Utahns.
Tax relief and strong fiscal discipline go hand in hand. Our thoughtful approach ensures meaningful tax cuts without sacrificing essential services or long-term stability.
Funding Highlights
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$300 million one-time and $200 million ongoing in new state tax cuts
Due to fiscally responsible policy at the state level, Utahns received additional tax relief from federal tax changes in the One Big Beautiful Bill Act (2026).
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$1.1 billion for Income Tax reduction
Reduced the Income Tax rate by 11% over the last 6 years, saving Utah families hundreds of dollars each year.
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$2.9 million for Child Care Business Tax Credit
Provided a tax credit to businesses that provide child care for employees.
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$9.5 million to expand the Child Tax Credit
Expanded the child tax credit by allowing more families to qualify (since 2024).
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$40 million to lower the state gas tax by 15%
Lowered the price at the pump for all Utahns.
Recent Legislation
HB 236
2026
Truth in Taxation Amendments
Made the property tax process more transparent.
HB 575
2026
Fuel Tax and Supply Amendments
Reduced the gas tax by 15% while increasing the supply and storage of fuel in the state to drive down prices long term.
SB 60
2026
Income Tax Rate Amendments
Reduced the income tax rate to 4.45% – a $101 million reduction.
HB 290
2026
Child Tax Credit Amendments
Expanded the Child Tax Credit to benefit more Utah families.
HB 190
2026
Child Care Business Tax Credit
Provided tax credits to businesses that provide childcare for their employees
HB 250
2026
Utah Retirement Plan Exchange
Created an online retirement plan exchange, so more Utahns can better save for retirement.
HB 493
2026
Consumer Products Amendments
Strengthened price transparency, ensuring that the price on the shelf is the price charged at the register.
HB 124
2026
Veteran Armed Forces Property Tax Exemption Amendments
Provided veterans with property tax exemptions.
HB 106
2025
Income Tax Revisions
Reduced state income tax rates from 4.55% to 4.50%, enacted an income tax credit for employer-provided childcare for, and expanded the child tax credit.