State-by-State Guide to Taxes on Retirees - Utah
Tool | November 2019

State-by-State Guide to Taxes on Retirees

Utah

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The Bottom Line
Flag of Utah

Not Tax-Friendly

The Beehive State is one of the minority of states that taxes Social Security benefits. Most other retirement income is exposed to the flat 4.95% income tax, too. Utah provides a small retirement-income tax credit that may help offset the tax on Social Security for certain income-eligible seniors.

State Sales Tax

State levy is 6.1%, including a 1.25% tax that goes to local governments. Localities can add up to an additional 2.95% as well; the average combined rate is 7.17%, according to the Tax Foundation. Groceries are taxed at 3%.

Income Tax Range

Utah has a flat tax of 4.95%.

Effective tax rate: 3.42% for single filers, 4.95% for joint filers.

Social Security

Social Security benefits are taxed to the extent they are taxed at the federal level.

Exemptions for Other Retirement Income

Railroad Retirement benefits are exempt.

Taxpayers age 65 and older can claim a credit of up to $450 ($900 for joint filers). The credit is completely phased-out for single taxpayers with a modified adjusted gross income of $43,000 or more, joint filers with modified AGI of $50,000 or more, and married taxpayers filing separate returns with modified AGI of $34,000 or more.

Property Taxes

In Utah, residents pay an average $713 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: For 2019, homeowners and renters 66 and older (and surviving spouses of any age) who earned $33,530 or less in 2018 can get a “circuit breaker” tax credit that permits an abatement of 50% of the property taxes due, up to $970. For renters, the amount of relief received is also based on the percentage of rent paid. Homeowners and mobile-home owners get an additional credit equal to the tax on 20% of their property’s fair market value. Homeowners who qualify for the circuit breaker generally also qualify for an indigent abatement or deferral; those younger than 65 who have a disability or extreme hardship may also qualify.

Vehicle Taxes

Sales tax is due on purchases. A tax based on a passenger vehicle’s age is due on registration.

Inheritance and Estate Taxes

None.

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