UTAH - As Utah welcomes 2026, several significant legislative updates are set to take effect on January 1. These changes range from a historic shift in how the state observes time to continued tax relief and new protections for healthcare and housing.
Here are five of the most impactful new laws and regulations taking effect in the Beehive State this January.
1. Permanent Mountain Standard Time (HB 120)
In one of the most anticipated shifts in state policy, Utah will begin a permanent observance of Mountain Standard Time year-round starting January 1, 2026.
- The Change: This law aims to eliminate the biannual "spring forward" and "fall back" clock changes. Unless federal law is amended to allow for permanent Daylight Saving Time (which would trigger a move to Mountain Daylight Time), Utahns will no longer change their clocks.
- Why it matters: Proponents argue that ending the time switches will improve public health, reduce traffic accidents, and provide more consistency for businesses and schools.
2. Individual Income Tax Rate Reduction (HB 106)
Utah continues its trend of returning surplus revenue to taxpayers. Starting January 1, the State individual income tax rate will see another scheduled reduction.
- The New Rate: The rate will drop from 4.55% to 4.50%.
- Family Support: The legislation also expands the State child tax credit, providing additional relief for families with children under 5, and introduces a new credit for employers that provide childcare for their workers.
3. Fuel Tax Adjustments
As part of the State long-term plan to maintain infrastructure, Utah's motor fuel (gasoline) and special fuel (diesel) tax rates are subject to an annual inflation adjustment effective January 1st.
- The Mechanism: Under state law, the tax is calculated based on the average wholesale price of fuel.
- The Goal: These funds are specifically earmarked for the Transportation Investment Fund to pay for road construction, bridge repairs, and highway maintenance statewide.
4. Uniform Health Care Decisions Act (SB 134)
Utah is modernizing its legal framework for medical emergencies and end-of-life care with the Health Care Decisions Act Amendments.
- Advance Directives: The law simplifies and updates the forms used for "Advance Health Care Directives." It clarifies how mental health care instructions can be included and establishes more explicit rules for when a healthcare provider can act as a surrogate decision-maker.
- Digital Access: The update also encourages the use of electronic signatures and digital storage for these documents, making it easier for hospital staff to access a patient's wishes during a crisis.
5. Housing Attainability & "Attainable Home" Credits (HB 360)
To address the State housing shortage, House Bill 360 introduces new tools to help first-time buyers and increase the supply of "attainable" housing.
- Rehabilitation Funds: The law allows cities to use funds from the Utah Homes Investment Program to acquire and rehabilitate single-family homes, which must then be sold as "attainable homes."
- Owner-Occupancy Rule: To prevent these homes from being immediately converted into rentals or "flipped" by investors, the law requires a deed restriction that ensures the home remains owner-occupied for at least five years.
A Note on the Utah Minimum Wage
Unlike many neighboring states, Utah's minimum wage will remain at the federal minimum wage of $7.25 per hour in 2026. While several local advocacy groups have proposed initiatives to raise the wage, no state-level increase is scheduled for the new year.
