ALEC Policy Champions Reduce Utah Income Taxes for Sixth Straight Year Under House Bill 106

Utah’s House Bill 106 cut the state’s flat individual income-tax rate to 4.50%, but a second 2026 law lowered it again, to 4.45%. The later reduction took effect retroactively. It came through Senate Bill 60.

House Bill 106 reduced the rate from 4.55% and applied the change back to January 1, 2025. Senate Bill 60 then lowered the personal rate from 4.50% to 4.45%, retroactive to January 1, 2026.

Utah Gov. Spencer Cox signed the second bill in March 2026. State Sen. Daniel McCay and Rep. Steve Eliason sponsored it, and the American Legislative Exchange Council (ALEC) credited the two lawmakers for advancing the measure.

Rep. Matt MacPherson said the tax reductions formed part of his affordability agenda. He estimated the income-tax cut would return $101 million to Utah taxpayers and cited a 15% gas-tax reduction.

“This year I helped cut the state income tax for the sixth year in a row, worth $101 million back in Utahns’ pockets, and cut the gas tax by 15%.”

MacPherson made the statement on October 12, 2026. He also pointed to added funding for public safety and schools.

The latest rate cut arrived in two separate bills

The two measures lowered personal income-tax rates by 0.05 percentage points apiece, from 4.55% to 4.50%, then from 4.50% to 4.45%. Senate Bill 60 also reduced the corporate income-tax rate from 4.50% to 4.45%.

Utah applies a single statewide income-tax rate rather than graduated brackets. The state shifted to a flat rate for personal and corporate income in 2007, according to the council.

The organization’s October 13, 2026, article was written by Gemma Najarro and Joshua Meyer. It presented McCay and Eliason as legislative champions and described lower rates as a way to encourage economic growth and attract residents from nearby states.

The annual savings estimate came from MacPherson’s political statement. He described the $101 million as money returned to Utahns through the tax reduction.

Utah’s published rate sequence shows five consecutive annual drops

The listed annual rates show reductions from 2022 through 2026, five consecutive calendar years. The broader tally in the research includes cuts in 2018 and then 2022, 2023, 2024, 2025 and 2026. That is six reductions, but not six consecutive calendar years.

The council describes Senate Bill 60 as Utah’s sixth income-tax-rate reduction since 2021. Its account also puts the rate at 4.95% in 2021, while the year-by-year history lists 4.95% for 2022. The supplied chronology therefore uses different starting-year descriptions.

The competitiveness claims point in different directions

The council’s 2026 Rich States, Poor States ranking placed Utah 10th, eight positions below the previous year. The research links the change to Utah’s repeal of its full public-sector collective-bargaining ban.

Separately, the council’s October 13 article said Utah had ranked first for 19 consecutive years in its state economic-competitiveness index. Those descriptions give different positions for Utah. The material does not reconcile them.

The council has promoted Utah as a low-tax state. Its praise for the tax cuts sits alongside the lower 2026 ranking and the policy change cited in that ranking.

Housing costs remain part of the affordability debate

A Utah analysis said housing costs had increased more than twice as fast as income and pointed to growing household-related obligations.

The council praised McCay and Eliason for the latest reduction, saying: “Congratulations to Sen. Daniel McCay and Rep. Steve Eliason for taking another step to promote economic growth in Utah.”