Utah Income Tax Calculator

Taxes in Utah

Utah State Tax Quick Facts

• State income tax: 4.85% flat rate
• Sales tax: 6.10% - 9.05%
• Property tax: 0.52% average effective rate
• Gas tax: 31.90 cents per gallon of regular gasoline and diesel

The state of Utah has a single personal income tax, with a flat rate of 4.85%. Sales taxes in Utah range from 4.85% to 9.05%, depending on local rates. Homeowners in Utah also pay exceptionally low property taxes, with an average effective rate of just 0.52%. Overall, taxpayers in Utah face a relatively low state and local tax burden. Depending on where you live in Utah, your level of tax burden can vary a bit.

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Utah Income Taxes

Personal income taxes in Utah are relatively simple when compared to the federal income tax. There is a single, flat rate paid by all income earners: 4.85% of their taxable income.

Taxable income is calculated by subtracting all personal exemptions from total income. In Utah, you can claim a personal exemption of $579 for each dependent you claimed on your federal tax return. Exemptions can be claimed for filers, spouses and dependents. Additional exemptions can be claimed for dependents with disabilities.

There are no itemized or standard deductions in Utah, but the Taxpayer Tax Credit, described below, is based on federal deductions and can lower the tax burden for taxpayers at lower income levels. Likewise, Social Security income in Utah is taxable, but the Retirement Income Tax Credit helps alleviate the tax burden for retirees. All credits are subtracted directly from total income tax liability. Some of the major tax credits include:

• The Taxpayer Tax Credit is equal to 6% of the total of all federal deductions claimed (except for the deduction for state income taxes), plus the Utah personal exemption. This credit phases out above a certain income level that's dependent on your filing status. For example, if you're a single filer with an income of more than $15,095, you won’t have access to this credit. Other filers may have different limits.
• The Qualifying Solar Project Credit is 25% of the amount paid to purchase qualifying solar units, up to a maximum of $1,600.
• The Utah Retirement Credit is a refundable credit available to taxpayers born on or before December 31, 1952. The credit can be up to $450, or $900 for joint filers. This credit phases out above a certain income level, though.
• The Low-income Housing Credit is available to taxpayers who live in a low-income housing project. The amount of the credit is determined by the Utah Housing Corporation.
• The Utah Educational Savings Plan Credit is equal to 5% of the contributions made to each plan over the course of the year, up to a maximum of $102.47 per qualified beneficiary, or $204.93 for joint filers. To qualify for this credit, your contribution cannot also have been deducted from your federal return.

Utah Capital Gains Tax

Long-term and short-term capital gains in Utah are subject to the regular personal income tax rate of 4.85%. In addition to the long-term federal capital gains tax rate of up to 20%, that can lead to a total long-term capital gains tax rate of 24.85% (and higher for short-term capital gains, which the federal government taxes as ordinary income).

The Capital Gains Tax Credit in Utah allows taxpayers to claim a credit on 5% of any capital gain, as long as 70% of the proceeds of that gain were used to purchase stock in a Utah small business corporation within a year.

Utah Sales Tax

There are both state and local sales tax rates in Utah. The state rate is 4.85%. Local rates, which are collected at the county and city level, range from 1.25% to 4.20%. That means the actual rates paid in Utah range from 6.1% to 9.05%. Rates for all 29 Utah counties, as well as 100 of the largest cities in the state, are shown in the table below.

Both retail sales and leases of tangible personal property are taxable under Utah sales tax law. Tangible personal property includes physical goods, such as furniture and clothing, as well as electronically transferred products like movie downloads. Some services are also taxable, including maintenance and repair labor, laundry services, admissions fees (to movies, sporting events, ski resorts, etc.), hotel and motel rooms and telecom services.

Several types of products have their own rates. Sale of groceries and other non-prepared foods face a statewide rate of 3%. Residential utilities such as gas and electricity are charged a sales tax rate of up to 6%. Certain products are fully exempt from sales tax. Prescription drugs, medical equipment, prosthetic devices, wheelchairs, newspapers, college sports events, textbooks and fuel cells are all exempt.

Utah Property Tax

If you’re thinking about moving to Salt Lake City, Ogden or anywhere else in Utah, you’ll want to know about local property tax rates. The good news is that Utah has some of the lowest property taxes in the country. The statewide average effective tax rate, which is the total amount of taxes paid each year as a percentage of a home’s market value, is just 0.52%. This is tied for the seventhth-lowest of any U.S. state (South Carolina).

Before making the move, you’ll also want to take a look at our Utah mortgage guide, where you’ll find plenty of information about rates and getting a mortgage in the Beehive State.

Utah Cigarette Tax

The cigarette tax in Utah is $1.70 per pack of 20. Revenue from the tax is partially used to fund the state’s tobacco prevention and cessation program.

Utah Alcohol Tax

Utah has some of the most stringent alcohol laws in the nation. Liquor and wine can only be purchased in state-run liquor stores. Beer with an alcohol by volume of 5% or lower can be purchased in grocery stores, but beer above that cutoff is only available in state liquor stores.

Utah taxes on beer total 41 cents per gallon, or about 4 cents per beer.

Utah Gas Tax

Both regular and diesel gasoline in Utah are taxed at a rate of 31.90 cents per gallon. Those are the 17th- and 15th-highest rates in the country, respectively.

Utah Estate Tax

There is no estate or inheritance tax in Utah.

• The Alta Ski Area gets over 500 inches of snow per year.
• There are approximately 4.7 billion tons of dissolved salt in the Great Salt Lake.