Utah continues to rank among the most business friendly and family oriented states in the nation, with a high quality of life that attracts residents and companies alike. However, one area where the Beehive State lags behind is the overall tax burden placed on its citizens.
According to the latest “How Utah Compares” report from the Utah Taxpayers Association, Utah’s combined state and local tax burden is above the national average placing Utah at 17th highest in the nation for combined taxes and fees placed on its residents.
“Utahns contribute a significant amount through taxes and fees,” said Billy Hesterman, president of the Utah Taxpayers Association. “The primary drivers pushing Utah’s tax burden higher are our income tax and sales tax rates. We urge elected officials to prioritize reducing government spending and to continue cutting income taxes in the coming years.”
When ranked individually by tax type, Utah places:
- 12th highest in the nation for income tax burden
- 14th highest for sales tax burden
- 23rd for motor fuel taxes
- 35th for property taxes
While property taxes often receive the most public attention, and criticism, the Utah Taxpayers Association emphasizes that greater focus should be placed on reducing reliance on income and sales taxes.
“This report underscores the need to remain disciplined in controlling government spending and lowering taxes across the board,” Hesterman continued. “When individuals and businesses keep more of their hard-earned money, our economy grows stronger and Utah’s exceptional quality of life is preserved. To maintain what makes Utah special, we must stay committed to keeping taxes low, fair, and competitive.”
For context, the five states with the highest overall tax burdens are New Mexico, New York, Hawaii, North Dakota, and Oregon. The five states with the lowest tax burdens are Florida, Tennessee, Arizona, New Hampshire, and South Dakota.
