Our 2024 Beehive Family Report was released on April 15th to illustrate the impact of federal, state and local taxes on a typical Utah family. The family is comprised of two working parents and three children, one of whom was born in 2023. The family owns a fully electric vehicle and a gas vehicle, a home in Salt Lake City, and earns 129% of the Salt Lake City median income.
A comparison to our 2023 report is made below:
|
Tax |
2023 Amount |
2024 Amount |
Explanation |
|
Social Security and Medicare |
$8,718 |
$10,489 |
The rates for Social Security and Medicaid have remained the same; this increase is due to an increase in income. |
|
Payroll/Employment Tax |
$4,749 |
$5,333 |
This increased due to an increase in income. |
|
Property Tax |
$3,683 |
$4,646 |
The Beehive Family’s home was valued higher than in 2023. Additionally, four of the taxing entities that collect property tax on the Beehive Family’s property went through Truth in Taxation and raised their tax rates. |
|
State Income Tax |
$3,043 |
$3,033 |
Although the Beehive Family saw an increase in income, their state income tax burden decreased because of the lowered rate of 4.65% and their child born in 2023 qualifying for a second personal exemption. Additionally, the standard deduction and personal exemption rates are adjusted annually for inflation. |
|
Sales Tax |
$2,522 |
$2,839 |
This modest increase is not due to an increase in sales tax rates, but due to an increase in the cost of goods and perhaps more purchases. |
|
Auto Taxes |
$1,037 |
$795 |
This figure decreased because the Beehive Family switched from two gas vehicles to one gas and one electric vehicle, reducing the amount of gas tax paid and taking advantage of the RUC program. |
|
Federal Income Tax |
$887 |
$1,524 |
This increased due to an increase in income. |
|
Excise Taxes |
$174 |
$196 |
This increased due to an increase in the cost of goods. |
|
Total |
$24,817.18 |
$28,856.47 |
|
The Beehive Family’s biggest burden continues to be the Social Security/Medicare taxes imposed by the Federal government. These programs will see major overhauls in the coming years as insolvency looms.
The Utah Legislature’s efforts to reduce taxpayers’ burden by lowering the income tax is undermined by increases in property taxes and sales taxes. These decisions are largely made on a local level as school districts, city councils, special districts and counties budget and adjust taxes to accommodate their revenue needs. We urge these taxing entities to be judicious in their budgeting processes to minimize the need for higher taxes. Additionally, the Legislature can help reduce this burden by declining to authorize new local option sales taxes and encouraging local entities to use existing tools to fund programs.
Many families feel overburdened by the “visible” taxes – like income tax and property tax. This report highlights that they are in fact even more burdened than they realize, with hidden taxes like excise taxes, payroll taxes and auto taxes. Your Utah Taxpayers Association works to alleviate this seen and unseen burden.