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
-
Over 162,000 Dreamers Cut Off From Affordable Care Act InsuranceHealth Insurance A federal court in North Dakota has blocked ACA coverage for DACA recipients in 19 states. Here's what it means.
-
What to Learn from Corporate Insiders' TradesWhen corporate insiders buy or sell, it can offer clues on whether you should do the same.
-
Tax Pros: Is Someone Fraudulently Using Your IRS PTIN?Tax Filing An unmonitored preparer tax identification number (PTIN) can lead to serious issues.
-
Are You a Renter? You Could Save on TaxesTax Breaks With these tax savings at your fingertips, rent may be more affordable
-
2025 Open Enrollment: Some DACA Recipients Can Purchase Affordable Care Act Health InsuranceOpen Enrollment Your eligibility to purchase health insurance from the federal marketplace may have changed. Here's what you need to know.
-
Holiday Office Party Taxes: Know Before You GoTax Tips The IRS could tax your gifts from Christmas raffles, Secret Santa, and White Elephant. Here’s how.
-
New Mexico Small Business Saturday Tax Holiday 2024Tax Holiday Here's how you can save on taxes during New Mexico’s Small Business Saturday.
-
Holiday Shopping Tax Tips for Business OwnersTax Deductions Before hitting the sales, businesses should know these key deductions and look out for overspending.
-
Tax Credit vs. Tax Deduction: What’s the Difference?Tax Breaks Your guide to tax deductions and credits, how the IRS treats them differently, and how they impact your tax bill.
-
Premium Tax Credit: Are You Eligible For This Health Insurance Tax Break?Tax Credits The tax credit can help qualifying individuals pay for coverage from the Affordable Care Act’s health insurance marketplace.
