Enrolled Copy S.B. 60 1

Income Tax Rate Amendments 2026 GENERAL SESSION STATE OF UTAH Chief Sponsor: Daniel McCay House Sponsor: Steve Eliason 2

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LONG TITLE 4

General Description: 5

This bill amends the income tax rate provisions. 6

Highlighted Provisions: 7

This bill: 8 ▸ amends the corporate franchise and income tax rates; and 9 ▸ amends the individual income tax rate. 10

Money Appropriated in this Bill: 11

None 12

Other Special Clauses: 13

This bill provides retrospective operation. 14

Utah Code Sections Affected: 15

AMENDS: 16

59-7-104, as last amended by Laws of Utah 2025, Chapter 407 17

59-7-201, as last amended by Laws of Utah 2025, Chapter 407 18

59-10-104, as last amended by Laws of Utah 2025, Chapter 407 19

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Be it enacted by the Legislature of the state of Utah: 21

Section 1. Section 59-7-104 is amended to read: 22

59-7-104 . Tax -- Minimum tax. 23

(1) Each domestic and foreign corporation, except a corporation that is exempt under 24 Section 59-7-102, shall pay an annual tax to the state based on the corporation's Utah 25 taxable income for the taxable year for the privilege of exercising the corporation's 26 corporate franchise or for the privilege of doing business in the state. 27

(2) The tax shall be [4.5] 4.45% of a corporation's Utah taxable income. 28

(3) The minimum tax a corporation shall pay under this chapter is $100.

S.B. 60 Enrolled Copy 29

Section 2. Section 59-7-201 is amended to read: 30

59-7-201 . Tax -- Minimum tax. 31

(1) There is imposed upon each corporation, except a corporation that is exempt under 32 Section 59-7-102, a tax upon the corporation's Utah taxable income for the taxable year 33 that is derived from sources within this state other than income for any period that the 34 corporation is required to include in the corporation's tax base under Section 59-7-104. 35

(2) The tax imposed by Subsection (1) shall be [4.5] 4.45% of a corporation's Utah taxable 36 income. 37

(3) In no case shall the tax be less than $100. 38

Section 3. Section 59-10-104 is amended to read: 39

59-10-104 . Tax basis -- Tax rate -- Exemption. 40

(1) A tax is imposed on the state taxable income of a resident individual as provided in this 41 section. 42

(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the 43 product of: 44 (a) the resident individual's state taxable income for that taxable year; and 45 (b) 4.45%. 46 [(b) 4.5%.] 47

(3) This section does not apply to a resident individual exempt from taxation under Section 48 59-10-104.1. 49

Section 4. Effective Date. 50

This bill takes effect on May 6, 2026. 51

Section 5. Retrospective operation. 52

This bill has retrospective operation for a taxable year beginning on or after January 1, 53

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