News Release

December 3, 2024 (Salt Lake City) – In Utah, businesses pay various state and local taxes that support critical public services. These taxes include the corporate income tax, individual income tax, property tax, sales and use tax, unemployment insurance tax, and other taxes. In FY 2024, Utah businesses paid $8.1 billion in state and local taxes. Today, the Kem C. Gardner Policy Institute released Part Five of its visual guide series on tax modernization in Utah, aiming to help policymakers and the public better understand Utah’s business taxes.

“Utahns share a common interest in a state and local tax system that provides for our needs, keeps the economy strong, and remains viable over the long term,” said Phil Dean, chief economist and public finance senior research fellow at the Gardner Institute. “This visual guide illustrates key components of Utah’s business taxes and how firms create both societal benefits and costs.”

Key findings from the report include the following:

• Highly competitive business tax climate – Utah’s business taxes, as a percentage of GDP, ranked among the lowest in the nation in FY 2022, behind North Carolina (3.5%) and tied with Missouri, Michigan, Indiana, and Georgia (3.8%). Other national rankings also highlight Utah’s highly competitive standing for businesses.
• $8.1 billion in total business taxes – In total, Utah firms paid $8.1 billion in business taxes in FY 2024. This includes not only corporate income taxes but also individual income taxes, property taxes, sales and use taxes, unemployment insurance taxes, and other taxes. Each firm’s mix of taxes varies depending on industry, location, and business type.
• People pay all taxes – Businesses function as conduits through which taxes ultimately shift to people through higher prices, lower wages, or lower profits.
• Corporate income tax volatility – Corporate income tax revenue volatility exceeds that of Utah’s major taxes, creating budget unpredictability for policymakers.

The full report is now available online. The Gardner Institute also offers Parts 1-4 of the visual guide series online, focusing on individual income tax, property taxes, user fees, and sales and use tax.

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