SALT LAKE CITY - On Dec. 5, 2024, Gov. Cox announced his recommendations for the state’s fiscal year 2026 budget, emphasizing investments in Utah’s future while providing tax relief for its aging residents. A key highlight of the $30.6 billion proposed budget is the recommendation to eliminate the state tax on Social Security benefits, alongside strategic investments in energy and programs supporting veterans and Utah’s aging population under the WISE Initiative (Wealth, Security, Independence and Engagement).

“This budget marks a return to normalcy after the unusual economic activity of the past few years,” said Gov. Cox. “With careful, strategic investments, we’re prioritizing the well-being of Utahns while maintaining the strong fiscal management our state is known for.”

Eliminating the Social Security Tax 

A cornerstone of the proposed budget is the complete elimination of the state tax on Social Security benefits. This measure will provide tax relief to more than 150,000 Utah seniors, many of whom face unique financial challenges due to inflation. This recommendation builds on years of incremental tax relief and aligns Utah with 42 other states that do not tax Social Security benefits.

“As Utah’s population ages, we must do more to support our seniors,” said Gov. Cox. “Eliminating the Social Security tax will directly benefit seniors, allowing them to keep more of their hard-earned income. It will also indirectly benefit the families and communities who are supporting their aging loved ones. Aging is challenging enough; this step will ensure that Utah is a place where every generation is strong.”

“The governor’s recommendation preserves what the legislature has set-aside for tax relief and recommends focusing efforts to recognize the growing share of older adults in Utah, allowing them to keep more of their hard-earned income,” said Sophia DiCaro, executive director of the Governor’s Office of Planning and Budget. “It’s a solution that supports Utahns who have helped build the thriving state we have today.”

Supporting veterans and Utah’s aging population

The fiscal year 2026 budget reflects Gov. Cox’s commitment to veterans, with funding for a suicide prevention program and support for the operation of veterans cemeteries.

The WISE Initiative (Wealth, Security, Independence and Engagement) will see investments to promote the well-being of older Utahns. Key components include:

- Expanding home-based care to support independence.

- Strengthening protections against senior fraud and exploitation.

- Ensuring continued access to healthy food for aging Utahns.

Supporting families and children

The proposed budget includes investments to strengthen families and safeguard children, through expanded tax credits, improved school safety, and resources for childhood nutrition and foster care.

“Families are the heart of Utah, and our budget reflects that,” said Lt. Gov. Henderson. “From helping young parents with a more inclusive child tax credit to supporting safe schools and stable homes for children, these recommendations invest in the strength and future of Utah’s families.”

Investment in Operation Gigawatt

The proposed budget dedicates $20 million toward nuclear energy development and $4.2 million for geothermal energy as part of “Operation Gigawatt.” This recommendation will support Utah’s plan to double Utah’s energy production over the next decade, making Utah a national leader in reliable and diverse energy technology.

Investing in rural Utah

Recognizing the vital role rural Utah plays in the state’s economy and culture, Gov. Cox’s proposed budget includes targeted investments to support economic growth, infrastructure and essential services in rural communities.

Supporting all Utahns

The governor’s recommendations aim to maintain Utah’s high quality of life while maintaining our track record of fiscal responsibility. From enhancing education funding and workforce development to advancing rural economic initiatives, the proposed budget charts a path forward for all Utahns.

For more information on Gov. Cox’s fiscal year 2026 budget recommendations, see the full budget recommendation and other resources in the media kit here