Tax in Utah: a complete guide
This guide details what you need to know about your tax liability if you live in Vermont.
Utah state income tax
Utah has a flat state income tax rate of 4.65 percent. This means you will pay 4.65 percent in tax regardless of your income.
Unlike many other states, Utah also taxes income from Social Security. In fact, it is just one of 11 states that currently do so.
Residents of Utah also need to be aware of their federal tax obligations. In 2023, seven different federal income tax brackets dictate how much you’ll owe each tax year.
For single filers, these include:
| Income bracket | Tax owed |
|---|---|
| Income bracket | Tax owed |
| $0 - $11,000 | 10 percent of taxable income |
| $11,001 – $44,725 | $1,100 plus 12 percent of the excess over $11,000 |
| $44,726 - $95,375 | $5,147 plus 22 percent of the excess over $44,725 |
| $95,376 - $182,100 | $16,290 plus 24 percent of the excess $95,375 |
| $182,101 - $231,250 | $37,104 plus 32 percent of the excess over $182,100 |
| $231,251 - $578,125 | $52,832 plus 35 percent of the excess over $231,250 |
| $578,126 and over | $174,238.25 plus 37 percent of the excess over $578,125 |
For people who are married and filing jointly, these include:
| Income bracket | Tax owed |
|---|---|
| Income bracket | Tax owed |
| $0 - $22,000 | 10 percent of taxable income |
| $22,001 – $89,450 | $2,200 plus 12 percent of the excess over $22,000 |
| $89,451 - $190,750 | $10,294 plus 22 percent of the excess over $89,450 |
| $190,751 - $364,200 | $32,580 plus 24 percent of the excess $190,750 |
| $364,201 - $462,500 | $74,208 plus 32 percent of the excess over $364,200 |
| $462,501 - $693,750 | $105,664 plus 35 percent of the excess over $462,500 |
| $693,751 and over | $186,601.50 plus 37 percent of the excess over $693,750 |
Utah also has a flat corporate income tax rate of 4.85 percent.
If you’re unsure about filing your taxes, a financial advisor can help. Here, they can review your income sources and develop a unique tax strategy just for you.
Utah Sales Tax
Utah has a statewide sales tax rate of 6.1 percent.
However, local counties and municipalities can also add their own rates on top of this of one percent. This brings the local sales tax to 7.1 percent.
The tax on food and food ingredients is also taxed differently, with a tax of 3.0 percent statewide. This includes the state rate of 1.75 percent, local option rate of 1.0 percent and county option rate of 0.25 percent.
Certain items, including prescription drugs, are exempt from sales and use tax.
Unlike other states, Utah does not hold an annual tax holiday.
Utah Property Tax
According to data from the U.S. Census Bureau, the average American household spends $2,690 on real estate property taxes, with the national average around 1.07 percent.
According to the Tax Foundation, Utah’s median property tax rate was 0.57 percent.
Properties are not taxed on the entire value of the property. In Utah, residential properties that are a primary residence receive an exemption of 45 percent of fair market value. Meaning they are only taxed on 55 percent of the fair market value.
Like many other states, Utah's property tax is collected locally. County assessors appraise real estate for assessment purposes and assess tax liability. The county commission and city governing bodies determine local property tax rates, which county trustees and city collecting officials then collect.
Utah Motor Tax
When buying a vehicle in Utah, you must be aware of the tax you must pay.
You must pay 6.85 percent state sales tax when purchasing a new vehicle.
Fuel tax also needs to be taken into consideration. In Utah, expect to be charged:
Gasoline is taxed at $0.345 per gallon
Diesel is taxed at $0.345 per gallon
Utah Estate Tax
Utah does not have an estate tax or inheritance tax.
However, it’s important to remember federal estate tax can still apply if your estate is above a certain threshold ($12.92 million in 2023); otherwise, there will be no fees on the estate or inheritance you leave behind.
Also, if you live in Utah but inherit an estate from someone living in a state with estate tax, you must abide by local regulations.
Utah Retirement Tax
As mentioned, Utah is one of the few states that taxes income from Social Security. This means that your retirement income from Social Security is taxable for retirees. Below is a breakdown of how other retirement income is taxed:
Pensions are taxable; Railroad Retirement benefits are tax-exempt.
Income from 401(k)s and IRAs are taxable.
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.