Utah Lawmakers Tackle Taxes During the Session’s Last Week

As the 2026 Utah legislative session hits home stretch, lawmakers are forging ahead on bills that they say will benefit every Utahn in the state.
 

“WYSIWYG” income tax cut

Up on Capitol Hill, there’s been talk of an income tax cut all session long. 

However, as lawmakers clamp down on a tightened budget, questions remained on the feasibility of a cut.

“The good news is that our revenue numbers came in stronger than I think people were maybe anticipating,” said Representative Steve Eliason (R-Sandy), during a legislative hearing.

Two bills began circulating, including a fast-tracked House bill this week, that call for dropping income taxes .05 percent, or about $40 a year for the average household income.

Proponents like Eliason said it saves Utahns money and shows fiscal discipline while still funding critical state programs.

“This is one of the very few, if maybe the only bill that arguably will benefit every Utahn, regardless of income level or, any other demographic factor,” he said.

Rep. Eliason referred to the tax cut as “WYSIWYG,” what you see is what you get.

But not everyone agrees with that. Those against the cut said it mainly benefits wealthy households and will have a negative impact on public education programs.

Moe Hickey, executive director of Voices for Utah Children, addressed a legislative committee saying the impact on the average Utah family is negligible. 

“These cuts do not provide meaningful relief to working families,” he said. “They primarily serve to hollow out the state's revenue stream. Income tax revenue is the primary engine for Utah's public education.”

WATCH: Utah Lawmakers Tackle Taxes | Utah Insight: 2026 Legislative Session

“Win-win-win-win” gas tax drop

Lawmakers have also been focusing on prices at the pump, going back-and-forth on trimming the gas tax.

Representative Calvin Roberts (R-Draper) is behind a bill that would cut the gas tax by 15 percent, or about 6 cents per gallon.

“We're trying to be targeted around Utah families,” Representative Roberts said to reporters during a media availability session. “And most Utah families fill up with regular motor fuel.”

The tax cut would be temporary, starting in July and ending in late December.

Roberts explained that’s why the bill also calls for an agreement with private refineries to increase production.

“We're going to bring more supply into the market. That's going to lower your gas prices,” he explained.

He called the bill a “win-win-win-win across the board.”

Initially, the bill failed to pass out of a senate committee, but on Wednesday, the committee resurrected the bill and moved it forward.

Child tax credit expansion

A third tax break lawmakers pursued this session was a child tax credit.

One bill calls for expanding the eligibility for the child tax credit by increasing income thresholds.

The tweaks to the current child tax credit law raise the income-based phaseout threshold by anywhere from $2,500 to $7,000, depending on filing status.

Speaker of the House Mike Schultz said during a media availability session that cost of living for families was a top priority for both the House and Senate.

He said they want to “make families more viable here in the state of Utah and lessen the tax burden on them.”

“We're trying to do all we can from the state's perspective and from policy, the policies that we passed,” he said, “to make life more affordable for families.”