11 May 2026 Utah Tax Commission releases revised withholding formula reflecting lower income tax rate for 2026 The Utah State Tax Commission has updated Publication 14, Withholding Tax Guide, which contains the revised withholding formula and tables resulting from the decrease in the personal income tax rate effective retroactive to January 1, 2026. The updated withholding formula/tables apply to payroll periods beginning on and after June 1, 2026. Utah Governor Spencer Cox approved S.B. 60, which, retroactive to January 1, 2026, lowers the state's individual income tax rate from 4.5% to 4.45%. This marks the sixth consecutive year in which Utah has reduced its personal income tax rate, resulting in cumulative annual savings of approximately $300 to $400 for the average Utah family. Last year, H.B. 106 lowered the tax rate from 4.55% to 4.5% retroactive to January 1, 2025. (See Tax Alert 2025-0958.) Employers should consider notifying employees of the decrease in Utah's personal income tax rate prior to the payroll period when the lower rate will be used in the withholding calculation.
Document ID: 2026-1045 | ||||
