Utah families may to pay more in taxes in 2018
SALT LAKE CITY — Tax changes made — and not made — during the 2018 Utah Legislature could mean a higher bill for some families.
The Utah Foundation says Utah lawmakers failed to address the impact of federal reforms on the state taxpayer exemption, and that means most Utah families will have a higher state tax bill.
“Initially, Utahns’ incomes are taxed at 5 percent. Then lower- and middle-income households qualify for taxpayer tax credits. But the federal changes reduce the amount of this tax credit received,” said Christopher Collard, a research analyst at the Utah Foundation.
The more children you have, the more you will pay.
An analysis of the laws, changes and data says a married couple with no children earning $50,000 a year will see a 20 percent savings, but a married couple making the same amount with three children will see a 19 percent increase in their tax bill.
It could be as much as $600 for a family with five children or more.
The Utah legislature made a small cut in the state’s income tax rate in the 2018 session, but many Utahns actually pay less than the nominal rate of 4.95%. Our new video explains how the state income tax affects Utah families. #utpol #uttax https://t.co/iyhxocfzlv pic.twitter.com/b4wPyHin1U
— Utah Foundation (@UtahFoundation) April 3, 2018
“Federal changes did not impact businesses and high-income households, but state changes did,” Collard explained. “These Utah high-income households and businesses are indirectly benefiting at the expense of these low- and middle-income households who now have to pay an additional $80 million in state taxes.”
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