Utahns deserve to keep more of their hard-earned money throughout every stage of life. Whether it’s retirees on fixed incomes, young families or hardworking individuals, this session’s $127 million in tax relief offers meaningful financial support and fosters upward mobility for all. This targeted relief is designed to empower Utahns, strengthen their financial well-being and create a brighter future for everyone.
With this year’s tax relief package, the Legislature has reduced taxes for Utahns by over $1.4 billion over the past five years, demonstrating a commitment to a tax structure that is designed to benefit all Utahns while remaining competitive and sustainable.
2025 Tax Relief for All Utahns:
- Income Tax: Reducing the income tax rate to 4.5%, promoting upward mobility for all Utahns.
- Social Security Tax: Eliminating social security tax for those earning up to $90,000, strengthening financial security for Utah’s retirees.
- Child Tax Credit: Expanding the child tax credit by two years to help young families thrive.
- Child Tax Credit for Businesses: Encouraging businesses to invest in the future of Utah’s children by providing tax credits for businesses that build and operate a childcare facility for their employees.
In addition to tax relief, the Senate and House are continuing to invest in key priorities, including education, with a direct salary increase of $1,446 for teachers, a $1,000 bonus for education support staff and a 4% funding increase for school districts – a $276 million investment. Public education funding in Utah has increased by $3.1 billion, a 112% increase from 2015-2025.
In December, the Executive Appropriations Committee set aside $165 million for tax relief. The remaining $38 million will be restored to the working rainy day funds, emphasizing lawmakers’ commitment to fiscal prudence and planning ahead.
The proposed tax cuts by the Senate and House reaffirm lawmakers’ unwavering commitment to providing meaningful tax relief to Utahns at every stage of life. Building on prior efforts, this comprehensive tax relief package will help families, seniors and individuals keep more of their hard-earned money, boost the economy and strengthen Utah’s position as a state of opportunity for all—keeping Utah the best place to live, work and raise a family.
“Once again, we are prioritizing caring for seniors on fixed incomes, supporting young families and championing upward mobility for all Utahns,” said Senate President J. Stuart Adams. “Thanks to Utah’s robust economy and our steadfast conservative policies, we’re putting money back where it belongs—with the people who earned it. By cutting taxes for the fifth year in a row, we’re ensuring more of Utahns’ hard-earned dollars stay in their pockets, all while maintaining our commitment to essential services and fostering long-term economic growth for future generations.”
“Utahns work hard for their money, and they deserve to keep more of it,” said Speaker Mike Schultz. “This year, we will build on our long-standing commitment to lowering taxes for all Utahns and supporting families. The cost of living continues to rise; by continuing to reduce the tax burden, we’re ensuring that Utah remains a place of opportunity and prosperity for generations to come.”
As the nation’s leader in economic strength, upward mobility and the best state overall, lawmakers are committed to ensuring that every Utahn thrives. These family-friendly tax cuts will deliver tangible benefits to Utahns, empowering them to succeed, strengthening families and fueling a sustained economic vitality.
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