Taxes
Keeping taxes low is one of the best ways to strengthen Utah’s economy, help families thrive, and create opportunity for future generations. As the cost of living continues to rise, the Utah House of Representatives remains committed to letting Utahns keep more of what they earn.
Over the last six years, the Legislature has delivered meaningful tax relief by reducing the state income tax from 4.95% to 4.45% – an 11% reduction that saves Utah families hundreds of dollars each year.
We have also provided targeted relief for families, seniors, veterans, and businesses while maintaining the balanced budgets and fiscal discipline that have made Utah the nation’s best-managed state. We will continue pursuing responsible tax relief, limiting the growth of government, and creating an environment where families, workers, and businesses can succeed.
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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$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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$23 million to expand the Child Tax Credit over the past 4 years
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
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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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$300 million one-time and $200 million ongoing in new state tax cuts
Utahns received additional tax relief from federal tax changes in the One Big Beautiful Bill Act because of fiscally responsible policy at the state level (2026)
Recent Legislation
HB 236
2026
Truth in Taxation Amendments
Required local governments and school districts proposing property tax increases to provide more information earlier in the process, ensuring Utahns can have meaningful input before decisions are made
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 tax cut for working Utahns and the sixth year in a row of tax cuts
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