Kelley R. Taylor
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
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
-
Cooling February CPI Lifts Rate Cut Hopes: What the Experts Are SayingWhile the Fed is likely to keep interest rates unchanged next week, an encouraging February CPI report raises the odds for more easing later this year.
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
-
You Don’t Want to Retire in Portugal: Here Are Three Tax Reasons WhyRetirement Taxes With the NHR benefit retiring and pension taxes increasing, you might rethink your retirement plans in Portugal.
-
Why Abolishing Florida Property Taxes is ProblematicProperty Taxes A bold proposal that aims to eliminate property taxes in the Sunshine State has roused concerns from economists, and rightly so.
-
First-Time Filing Taxes? Key Tax Tips to Know for 2025Tax Filing Preparing your IRS taxes for the first time may seem daunting, but here are some return preparation and filing tips to start.
-
Mail Theft Crisis: Why Your IRS Tax Refund Is At RiskTax Refunds Millions of dollars in tax refunds were stolen in the mail last year. Here's what you should know.
-
Ten IRS Audit Red Flags for Retirees in 2025Retirement Taxes Retirees who think they can escape the IRS audit machine should think again.
-
States with Emergency and Energy Sales Tax Holidays in 2025Sales Taxes Save on appliances with a state emergency preparedness or energy-efficient tax-free weekend in February.
-
New Colorado Tax Credit: What’s the Scoop?State Tax Everything you need to know about the Colorado family affordability tax credit in 2025.
