Easing the Burden: Utah Tax Burden Taking Lowest Share of Income in 20 Years

Over the past several years tax cuts have reduced Utah’s annual revenues by $479 million, or nearly 8%. For Utahns, this means a lower tax burden.

Utah Foundation periodically reviews Utah’s tax burden and ranks it among other states. For this review, tax burden is defined as all taxes and mandatory fees collected by the state and local governments as a ratio to $1,000 of personal income. Utah Foundation found that Utah’s state and local tax burden is at its lowest point in the past 20 years after reaching a peak in 2007. This report considers the impact of recent events such as the 2007 tax cuts and the Great Recession. The report provides an analysis of two decades of data to track historical trends.

Findings:

• Utah’s tax burden is at $111.60 per $1,000 of personal income, the lowest burden in the past 20 years.
• Utah’s burden ranks twenty-first among states.
• Utah’s 2007 tax cuts correspond with a decrease in the tax burden of $8.19, resulting in Utah’s ranking falling by eight places from thirteenth in 2007.
• In the past 20 years, state and local governments have pivoted away from using new taxes and instead rely more on fees.
• Over the past 20 years, the state tax burden has decreased while the local government tax burden has increased.
• The Great Recession had little impact on the tax burden.