The Top Bills of the 2026 Legislative Session
The Utah Legislature completed its work for 2026 right before midnight on March 6. In all, lawmakers passed a $31.6 billion state budget, approved a $115 million income tax cut, and enacted a number of policies that will change how residents and businesses interact with the government in the coming year.
As with every legislative session, there were some ups—see the income tax cut—and some downs. Lawmakers raised taxes on tobacco products and targeted ads that are sold largely by tech companies. The downs mean there is still plenty of work for us to do in educating elected officials about sound tax policy, but the positives show that we are seeing success in our efforts. We appreciate the work of those Utah legislators who put taxpayers first in the decisions they make.
As we continue working to better educate lawmakers about sound tax policy, I want to share some of the good that took place on Utah’s Capitol Hill, because it is significant. There were a lot of ideas considered during the 45-day session, and the good ones are, by and large, the ones that made it to the finish line. Here’s a rundown of the top three tax bills from 2026:
Senate Bill 60 (Senator Dan McCay, R-Riverton).
This bill is straightforward: it lowers the state’s individual and corporate income tax rate from 4.50% to 4.45%. The total cost of the tax cut was around $115 million and, when combined with the other income tax cuts the Legislature has enacted since 2018, amounts to roughly $300–$400 in annual tax savings per Utah household. This downward momentum for the income tax rate is a step in the right direction. Some may say it’s just another small cut, but when you look at the cumulative impact over the past eight years, it’s clear Utahns are saving real money. The Legislature would be wise to continue this trend well into the future. This bill passed with flying colors.
House Bill 236 (Representative Karen Peterson, R-Clinton).
Property taxes were a major issue during the 2026 session. Lawmakers clearly felt the pressure from constituents about the property tax burden, and many wanted to take action. Rep. Peterson determined that a strong, taxpayer-focused approach would be to increase transparency and public involvement in the budget process of taxing entities (cities, school districts, etc.). Under her bill, if an entity intends to increase taxes, it must follow an early notification process in May and June to alert the public. Then, if a budget is adopted by elected officials at the end of June, the entity must produce a document showing how the additional revenue will be used. The entity may not spend the new revenue until it is approved during the August truth-in-taxation hearing. This bill has many moving parts and may need some adjustments in the years to come, but its goal of increasing transparency and improving citizen involvement is being achieved. Rep. Peterson worked tirelessly with all stakeholders to create a bill that will have a positive impact on taxpayers for years to come. This bill passed with zero no votes.
House Bill 332 (Representative Tiara Auxier, R-Morgan).
This bill did not pass this year, but we hope some version of it returns in the future. Rep. Auxier sought to give taxpayers a stronger voice in major government bonding projects. The final version of the bill would have required school districts to obtain voter approval before taking out loans for school building construction. Currently, local governments, including school districts, can secure lower interest rate loans by obtaining voter approval for the loans. However, they also have the option to pursue loans at slightly higher interest rates without voter approval. Rep. Auxier aimed to close that second pathway and ensure taxpayers have the final say when significant government debt is incurred. The bill was ultimately held in committee.
There were many other positive pieces of legislation considered during the session. To see which bills we supported, I encourage you to view our Legislative Watchlist on our website. I would also encourage you to thank your legislators for their hard work in keeping taxes low and fair in Utah. We are not perfect, but we are pretty darn good and we’d like to keep that going in the future. Lawmakers need to hear from you that they’re headed in the right direction.
Finally, I want to thank our Board of Directors who met with Association staff weekly during the legislative session to review tax related bills and set Association positions on the legislation. Their support and expertise helps the Association get its positions correct and ensures good tax policy is being advocated for on Utah’s Capitol Hill. Thank you to these individuals for their time and care for the Association and our mission.