The 2026 Utah Legislative Session is expected to advance additional income tax cuts and fiscal policies that reduce long-term state revenue, disproportionately benefit high-income earners, and shift costs to local governments and families. These choices risk undermining stable funding for schools, child care, health care, and other investments critical to children and families.
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This blog will be updated as information becomes available. Last updated 1/16/26.
Tax and Budget Priorities
HB 235/SB 60: Income Tax Rate Amendments
Bill Update
Legislators are proposing a sixth income tax cut in 2026, reducing the rate from 4.5% to 4.45%, which will sacrifice another $83.6M in revenue annually that could otherwise support our schools, expand child care, or improve health services. Only half of Utah households will benefit from the cut, with an average $130 savings per year, while the wealthiest earners will save $584 per year. Cumulatively, the five previous tax cuts have saved the top 1% of wealthiest Utahns almost $20,000 per year, while saving a middle-class family only $200-500 annually. Legislative leaders have confirmed their goal of eliminating the income tax which would save the wealthy $121,514 per year. Learn more about income tax elimination here.
Position: OPPOSE
SB 116: Income Tax Rate Modifications
Bill Update
This bill would make Utah's income tax cuts automatic by creating an automatic mechanism to reduce the rate whenever actual state revenue exceeds a pre-set forecast, and then locks in those rates long-term. Because the mechanism only moves in one direction, it makes future revenue losses more likely and harder to reverse – increasing the likelihood of service cuts, higher fees, and even lower education funding. This pushes Utah further toward regressive revenue sources and undermines stable funding for schools, child care, health services, and other public priorities.
Position: OPPOSE
SB 65: Minimum Basic Tax Rate Amendments
Bill Update
This bill would change how local property tax revenue for schools is handled. Instead of staying in locally managed education funds, these dollars would go to the state and be treated as general funds, where they can be spent on anything—not just education. The state would then replace that money in school budgets using income tax funds, which are currently reserved for education and certain social services. This shift weakens local control over school funding while giving the state more power to redirect money elsewhere. For years, lawmakers have sought ways to access education-designated income tax revenue for other purposes. This effort is a workaround to free up funds for non-education spending. Governor Cox vetoed a similar bill last year, citing transparency concerns.
Position: OPPOSE
HB 210: Tax Penalties Amendments
Bill Update
This legislation repeals Utah's Earned Income Tax Credit (EITC), a proven tool that promotes work, reduces poverty, and strengthens financial stability for low- and moderate-income households. The creation of Utah’s EITC in 2022 was a major policy victory for Voices for Utah Children because of its direct impact on working families struggling to make ends meet. While the bill also addresses marriage penalties in certain tax credits, an effort we support, it simultaneously increases the taxpayer tax credit only for married filers, creating a new inequity by disadvantaging families who are not married.
Position: OPPOSE
SB 97: Property Tax Rate Amendments
Bill Update
This bill adds a new cap on "truth in taxation" property tax increases and constrains growth formulas. Local property taxes have risen in recent years, but state lawmakers rarely acknowledge how their continuous income tax cuts are putting more pressure on local governments. SB. 97 limits local governments’ autonomy and ability to maintain basic services. This change could shift revenue toward regressive funding mechanisms, like fee increases, which disproportionately harms low- and moderate-income Utah families.
Position: OPPOSE
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