Utah Revises Withholding Tables Due to Federal and State Tax Reform Laws
Effective for wages paid on or after May 1, 2018, the Utah State Tax Commission (STC) has revised the wage-bracket and percentage method withholding tables (withholding schedules) for employers [Pub. 14, Withholding Tax Guide, rev. 4-18].
The withholding tables were revised due to federal and state tax reform laws that were recently enacted. The federal Tax Cuts and Jobs Act (Pub. L. 115-97) was passed at the end of 2017 and took effect January 1, 2018. In response to the federal legislation, Utah passed its own state tax reform legislation in March, effective retroactive to January 1, 2018 [H.B. 293, L. 2018]. The state law lowered the individual income tax rate to 4.95% from 5%. Note that Utah does not have a supplemental wage tax rate.
The STC has also updated its individual income tax estimator for 2018. Employees can use this calculator to see how their Utah personal income tax liability may change in 2018.
Be sure to check out all the coverage of federal tax reform and its impact on states in PayState Update.