Kelley R. Taylor
Utah state tax: Overview
Utah keeps things straightforward with a flat income tax rate. However, retirees might feel the impact a bit more, since Utah is one of the few states that still tax Social Security benefits.
When it comes to sales tax, Utah falls somewhere in the middle. The average combined state and local rate is 7.32 percent, which is a little higher than the national average. On the bright side, property taxes are fairly low compared to other states, which can be a nice break for homeowners.
[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.]
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.
Utah income tax
Utah has a flat state income tax rate of 4.55%, according to the Tax Foundation.
Utah retirement taxes
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 1.22% local sales tax means a total 7.32% 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
Gasoline | $0.29 per gallon |
Diesel | $0.29 per gallon |
Source: Sales Tax Handbook
Utah taxes on alcohol and tobacco
Product | Tax Amount |
|---|---|
Cigarettes | $1.70 per pack of 20 |
Other Tobacco Products | 86% of manufacturer's selling price |
Medical Marijuana | 0% |
Source: Sales Tax Handbook
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
-
Best Banks for Retirees 2025National banks offer a wide variety of accounts and services, including wealth and investment management. Here's Kiplinger's pick of the best.
-
Best Banks for High-Net-Worth Clients 2025National banks offer a wide variety of accounts and services, including wealth and investment management. Here's Kiplinger's pick of the best.
-
The Most Tax-Friendly State for Retirement in 2025: Here It IsRetirement Tax How do you retire ‘tax-free’? This state doesn’t tax retirement income, has a low median property tax bill, and even offers savings on gas. Are you ready for a move?
-
Five Ways Trump’s 2025 Tax Bill Could Boost Your Tax Refund (or Shrink It)Tax Refunds The tax code is changing again, and if you’re filing for 2025, Trump’s ‘big beautiful’ bill could mean a bigger refund, a smaller one or something in between next year. Here are five ways the new law could impact your bottom line.
-
New SALT Deduction Could Put Thousands Back in California Homeowners’ PocketsTax Breaks The federal state and local sales tax (SALT) deduction cap is higher this year, and could translate into bigger savings for Golden State homeowners.
-
Money for Your Kids? Three Ways Trump's ‘Big Beautiful Bill’ Impacts Your Child's FinancesTax Tips The Trump tax bill could help your child with future education and homebuying costs. Here’s how.
-
Why Your Summer Budget Feels Tighter: Tariffs Push Up InflationTariffs Your summer holiday just got more expensive, and tariffs are partially to blame, economists say.
-
Alabama Tax-Free Weekend 2025Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
Key 2025 Tax Changes for Parents in Trump's MegabillTax Changes Are you a parent? The so-called ‘One Big Beautiful Bill’ (OBBB) impacts several key tax incentives that can affect your family this year and beyond.
-
‘I Play Pickleball in Retirement.’ Is It HSA-Eligible?Retirement Tax Staying active after you retire may be easier with these HSA expenses. But there’s a big catch.
