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Senate advances Social Security tax changes after committee debate; chair and sponsor say funding negotiations will continue

2474143 · March 3, 2025
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Summary

The committee advanced Senate Bill 71, which would exempt Social Security retirement income from state income tax for more Utahns. Committee members debated substitute income‑cap options and budget constraints; SB71 passed out of committee 4–2.

Senator Harper brought Senate Bill 71 to the Senate Revenue and Taxation Committee seeking to exempt Social Security retirement income from state income tax and to clarify eligibility rules. The bill’s sponsor framed the change as avoiding “tax on a tax,” saying Social Security contributions are taxed when earned and should not be taxed again in retirement.

Why it matters: Utah is among a small number of…

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