Utah state tax: Overview
Utah has a flat-rate income tax system. But retirees can get stung by the Beehive State's income tax since Utah is one of the few states that still tax Social Security benefits.
Sales taxes in Utah aren't high compared to other states. However, Utah's average combined state and local sales tax rate is 7.20%, which is above average.
Median property tax rates in Utah are fairly low compared to other states.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
In the News:
Gov. Spencer Cox has proposed eliminating the state's tax on Social Security benefits as part of his $30.6 billion budget plan, a move that could impact many Utah retirees.
If approved by lawmakers, Utah would become one of more than 40 states that exempt Social Security benefits from state income tax.
For more information, see Will Utah Stop Taxing Social Security Benefits?
[Data for this state tax guide was gathered from a number of sources including the U.S. Census Bureau, the state’s government website, and the Sales Tax Handbook. Property taxes are cited as a rate percentage rather than the assessed value.]
Utah income tax
Utah has a flat state income tax rate of 4.55%, according to the Tax Foundation.
Social Security benefits are included in Utah taxable income to the same extent they're taxed at the federal level. However, a nonrefundable tax credit is available for Social Security benefits.
- Pensions are taxable but Railroad Retirement benefits are exempt.
- Income from a qualified retirement plan may be deductible if contributions to the plan were previously taxed in another state.
- 401(k) and IRA distributions are taxable.
Utah sales tax
Utah's state sales tax rate is 6.10%, but a 1.15% local sales tax means a total 7.20% total rate, according to the Tax Foundation.
- Groceries: Taxable
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Taxable
Property taxes in Utah
In Utah, the median property tax rate is 0.47% of assessed home value according to the Tax Foundation.
Utah offers its residents five types of property tax relief. To find application forms and more information on any of the following programs, contact your county's auditor or treasurer's office.
- Circuit Breaker: Renter Refund and Homeowner Low Income Abatement
- Veterans with a Disability Exemption
- Active or Reserve Duty Armed Forces Exemption
- Blind Exemption
- Indigent Abatement/Deferral
Utah gas tax
| Product | Tax Amount |
|---|---|
| Gasoline | $0.29 per gallon |
| Diesel | $0.29 per gallon |
Source: Sales Tax Handbook
Utah taxes on alcohol and tobacco
Utah tobacco taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $1.70 per pack of 20 |
| Other Tobacco Products | 86% of manufacturer's selling price |
Source: Sales Tax Handbook
Utah alcohol taxes
| Product | Amount |
|---|---|
| Beer | $0.41 per gallon |
| Wine | $0 per gallon |
| Liquor | state-controlled |
Source: Sales Tax Handbook
Utah estate and inheritance taxes
There are no estate or inheritance taxes in Utah.
Related Content
-
Annuity Payouts in Retirement: How Much Can You Get Each Month?Annuity payouts can provide guaranteed income in retirement, but how much? The answer depends on several factors, including age, gender and the amount invested.
-
How to Get Your Kids into Investing: A Family Project to TryTo teach your children about investing, put your money where your mouth is with this fun and potentially profitable exercise.
-
New Hampshire Mobile Home and Condo Property Taxes Inexplicably TripleProperty Tax A city-wide revaluation is causing concern among Rochester locals who argue property taxes are too high.
-
Why Digitizing Your Tax Records Can Simplify Your Filing in 2025Tax Records If you can, switching from paper to e-filing your taxes can have many benefits.
-
Will You Owe Taxes on Your Recently Forgiven Student Loan?Loan Forgiveness If you received student debt forgiveness last year, know these key points when filing taxes. Plus — what can you expect from a new president?
-
Homeowners Rush to Install Solar Panels Before Trump Cuts Tax CreditsTax Credits With a new incoming presidential administration, is the solar energy tax credit in the hot seat?
-
Gov. Hochul Vows to Deliver $1 Billion in Tax Relief to New YorkersState Tax The proposed tax cuts would benefit New York middle-class families.
-
More Taxes Could Slam New Yorkers Over MTA Budget ShortfallState Taxes Lawmakers warn that New Yorkers may need to brace for more taxes.
-
IRS Free File Is Now Open for 2025: Are Your Taxes Eligible?Tax Filing Official tax season doesn't begin until late January, but taxpayers can start filing free online returns now.
-
California Fires: How to Recover Tax Records and Other Important DocumentsDisaster Recovery Having your tax records and other vital documents is important for claiming casualty loss deductions that can help with recovery.
