If you're filing a Utah individual income tax return for tax year 2026, there are several important changes you'll want to be aware of before you begin. Utah updated forms, introduced a new worksheet form, added new contribution options, expanded certain credits, and reduced the state income tax rate.
Utah Tax Forms Have Been Redesigned
Utah redesigned the tc-40inst TC-40 return and related schedules for 2026. Many line numbers have changed, so if you're comparing your return to a prior-year return or older instructions, be sure you're using the correct line references. [tc-40inst.pdf | PDF]
New Form TC-150 for 2026
Utah introduced Form TC-150, Credits, Recaptures and Use Tax Worksheets for tax year 2026.
This new form is used to calculate certain:
- Tax credits
- Credit recaptures
- Additions to income
- Subtractions from income
- Utah use tax
Many common Utah credits now require information from Form TC-150.
New Rules for Utah's Income Tax Exemption
The Utah Legislature passed HB 60, which changes how the Utah income tax exemption is determined.
For 2026, eligibility is based on your Utah taxable income rather than your federal adjusted gross income (AGI). Taxpayers whose Utah taxable income falls below certain thresholds may qualify to be exempt from Utah income tax.
New Social Security Repayment Subtraction
Also under HB 60, Utah created a new subtraction from income for certain taxpayers who repay previously received Social Security benefits.
This subtraction is reported using code SU014PT - Social Security Repayment. It generally applies when:
- You claimed a federal credit for repaid Social Security benefits, and
- You did not claim Utah's Social Security Benefits Credit in the year the benefits were received.
Utah Income Tax Rate Reduced
The Utah Legislature passed SB 60, reducing the individual income tax rate for 2026.
| Tax Year | Tax Rate |
|---|---|
| 2025 | 4.50% |
| 2026 | 4.45% |
Taxpayers will calculate their Utah income tax using the new 4.45% rate.
Two New Voluntary Contribution Funds
Utah added two new charitable contribution options to the state return.
School Meals Debt Relief Fund (CN009PT)
Created by HB 148, this fund helps local education agencies pay off student school meal debt.
Citizenship Scholarship Fund (CN010PT)
Created by HB 502, this fund provides scholarships to students who demonstrate exemplary citizenship and school attendance.
Child Tax Credit Expansion
Utah passed HB 290, increasing the income phaseout thresholds for the Utah Child Tax Credit.
As a result, more taxpayers may qualify for the credit or receive a larger benefit before the credit begins to phase out.
Changes to Employer-Provided Childcare Credits
Utah passed HB 190, which updates employer childcare-related tax incentives.
For 2026:
- Qualifications for existing employer-provided childcare credits were revised.
- A new Small Business Childcare Expenses Credit (AN014PT) was added.
- Existing childcare credits continue to include:
- AN012PC - Employer-Provided Childcare Construction Credit
- AN013PT - Employer-Provided Childcare Expenses Credit
These credits are designed to encourage employers to provide childcare benefits and facilities for employees.
For most taxpayers, the biggest changes for 2026 will be the new Form TC-150, the lower 4.45% tax rate, the updated exemption rules, and the expanded tax credit opportunities. Review all Utah interview screens carefully to ensure new credits, deductions, and contribution options aren't missed.
For more information regarding these changes, please see the TC-40 Instructions.