SALT LAKE CITY—The legislature has announced tax cuts once again with an eye on helping Utahns at every stage of life. This session’s $127 million in tax relief is intended to give young families, those on fixed incomes and other hardworking individuals meaningful financial support.

Including this package, the legislature has reduced taxes for Utahns by over $1.4 billion over the past five years, according to a legislative release.

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.

The Senate and House majority caucuses also announced last week 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.

The Executive Appropriations Committee set aside $165 million in December for tax relief with the remaining $38 million going to the working rainy day funds, the release said. 

 “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,” Speaker Mike Schultz said. “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.”