Income Tax
The individual income tax represents Utah’s single largest tax revenue source. Utah’s state-imposed income tax applies uniformly statewide, unlike some states that allow a local income tax. Utah’s corporate income tax provides revenue growth yet poses volatility risks to Utah’s state and local tax portfolio. While smaller than Utah’s three major taxes (individual income, sales and use, and property tax), the corporate income tax still generates sizable revenue amounts. The Utah Constitution currently earmarks individual and corporate income tax revenues for public and higher education, other services for children, and services for people with disabilities.
Decoding the Income Tax Earmark: Proposed Changes to Utah’s Constitution
On the November 2024 ballot, voters will decide whether or not to amend the Utah Constitution to allow the use of income tax revenue for any public function, contingent on maintaining certain school funding provisions.
A Visual Guide to Tax Modernization: Individual Income Tax in Utah
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. This visual guide, which is the fourth in a series, illustrates key components of Utah’s income tax – the fastest growing and most volatile major tax.
Income Tax insights
In recent decades, income tax revenue growth outpaced growth in the two other major taxes (property tax and sales and use tax), even with tax rate cuts. In fact, since full implementation of Utah’s current single rate system in 2008, Utah’s income tax base has more than paced with the economy.