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 11 states that tax Social Security benefits.
Sales taxes in Utah aren't high compared to other states. But Utah's average combined state and local sales tax rate is 7.19%, which is above average. Median property tax rates in Utah are fairly low compared to other states.
[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.]
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Utah income taxes
Utah has a flat state income tax rate of 4.65%.
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 rte is 6.1%, but a 1% local sales tax means a total 7.1% total rate, according to the Tax Foundaiton.
- Groceries: Taxable (1.75% state tax, plus mandatory 1.25% in local and county taxes)
- Clothing: Taxable
- Motor Vehicles: Taxable
- Prescription Drugs: Exempt
Property taxes in Utah
In Utah, the median property tax rate is .57% of assessed home value according to the Tax Foundation.
Utah offers its residents 5 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 taxes (motor fuel)
| Product | Tax Amount |
|---|---|
| Gasoline | $0.345 per gallon |
| Diesel | $0.345 per gallon |
Utah taxes on alcohol and tobacco
Utah Tobacco Taxes
| Product | Tax Amount |
|---|---|
| Cigarettes | $1.70 per pack of 20 |
| Snuff | $1.83 per ounce |
| Other Tobacco Products | 86% of manufacturer's selling price |
| Vapor Products | 56% of manufacturer's selling price |
Utah Alcohol Taxes
| Product | Amount |
|---|---|
| Beer | $0.41 per gallon |
| Wine | $0 per gallon. (According to the Sales Tax Handbook, Utah's sales tax rate applies to the purchase of wine.) |
Liquor: State controlled in Utah, according to the Sales Tax Handbook.
Utah estate and inheritance taxes
There are no estate or inheritance taxes in Utah.
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