Gov. Cox signs ‘Historic’ $480 million tax cut. How will it impact Utah taxpayers?
Utah’s food tax will not be cut unless voters agree to a constitutional amendment that will change how lawmakers spend income tax revenues.
Gov. Spencer Cox affixed his signature to the “historic” $480 million tax cut package approved by Utah lawmakers earlier this month. While most of those reductions will be in effect for the 2023 tax year, one big part is on hold until after the 2024 election.
The primary piece of the tax cut puzzle drops Utah’s corporate and personal income tax rate from 4.85% to 4.65%. Those state cuts primarily benefit the top 5% of wage earners, or those who make more than $235,000 per year, who will see a yearly average income tax reduction between $1,000 and $3,000, according to the Legislature’s Office of Legislative Fiscal Analyst. Utahns who make over $638,000 per year, or the top 1% of earners, will see a reduction between $5,000 and $9,500.
Most taxpayers will see their income tax bill shrink by $500 or less annually.