Navigating the complexities of state taxes can be daunting, but understanding Utah's tax landscape is essential for residents and newcomers alike.
In this guide, we'll explore key components of The Beehive State's tax system, from income and sales taxes to property taxes and retirement benefits.
Utah state tax: Overview
Utah keeps things relatively 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 taxes 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%, which is a little higher than the national average.
On the bright side, property taxes are fairly low in the Beehive State compared to other U.S. states, which can be a relief for some 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.]
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.
