Utah cuts its flat rate to 4.45%, backdated to January 1
Senate Bill 60 trims the income tax rate from 4.5% to 4.45% for taxable years beginning on or after January 1, 2026. The withholding tables followed on June 1.
Senate Bill 60, “Income Tax Rate Amendments”, was signed by the governor on March 23, 2026 and cuts Utah’s individual income tax rate from 4.5% to 4.45%. It took effect on May 6, 2026, but it has retrospective operation for any taxable year beginning on or after January 1, 2026, so the new rate covers the whole of 2026. Utah Code 59-10-104 now reads 4.45%.
The cut is small: 0.05% of income, or $37.50 a year on $75,000. It is the sixth cut since 2017, and the fifth year in a row the rate has come down:
| Tax years | Rate |
|---|---|
| 2018 – 2021 | 4.95% |
| 2022 | 4.85% |
| 2023 | 4.65% |
| 2024 | 4.55% |
| 2025 | 4.5% |
| 2026 | 4.45% |
Nothing else in the calculation moved. The taxpayer tax credit is still 6% of the federal standard deduction, withdrawn at 1.3 cents for every dollar of income above an indexed base, so a single filer earning between about $21,000 and $93,000 still pays 5.75% on the next dollar.
Because the bill passed partway through the year, the Tax Commission’s withholding tables caught up later. Publication 14 (Rev. 4/26) applies the 4.45% rate to pay periods beginning on or after June 1, 2026. Anyone withheld at the old rate before then had slightly too much taken, and recovers it on the 2026 return.
Source:Utah State Legislature