Utah State Tax Rate

Utah uses a flat income tax system, meaning all taxable income—regardless of amount—is taxed at the same rate.

For the tax year, both individuals and businesses benefit from a modest rate reduction enacted by the state legislature.

Utah Income Tax Rates

Individual Income Tax

Flat Rate: 4.5%

Applies To: All Utah taxable income, regardless of income level

Legislative Update:

• Reduced from 4.55% to 4.5% under House Bill 106, signed into law in March 2025
• Retroactive to January 1, 2025, meaning it applies to the entire tax year
• Payroll withholding tables were updated beginning June 1, 2025

Corporate Income Tax

Flat Rate: 4.5%

Applies To: C corporations doing business in Utah

Change from Prior Year:

• Also reduced from 4.55% to 4.5%, matching the individual income tax rate
• Retroactive to the start of the 2025 tax year

Other Notable Utah Taxes

Sales and Use Tax

• Statewide Base Rate: 6.10%. Includes a mandatory statewide local add-on
• Average Combined State and Local Rate: Approximately 7.42%
• Local Variations: City and county sales tax rates vary, which can significantly affect the final rate paid by consumers

Property Tax

• Effective Property Tax Rate: Approximately 0.47% on owner-occupied homes
• National Standing: Among the lowest effective property tax rates in the U.S.

Retirement Income Taxation

• Social Security Benefits: Taxable at the state level
• Other Retirement Income: Generally taxable
• Senior Tax Relief: Qualifying seniors may be eligible for a retirement income tax credit, which can help offset some or all of the tax owed, depending on income

Estate and Inheritance Taxes

• Estate Tax: None
• Inheritance Tax: None. Utah does not impose any taxes on estates or inherited assets.

Filing and Compliance Tips

Recommended: Electronic Filing

Taxpayers and businesses are encouraged to file electronically through the Utah State Tax Commission’s online systems or approved tax software.

Benefits of e-filing include:

• Faster processing and refunds
• Improved accuracy with built-in error checks
• Immediate confirmation of receipt
• Secure payment and direct deposit options
• Easy access to prior-year returns and payment history

Electronic filing is available for individual income tax, corporate tax, and sales tax returns, and is especially beneficial for taxpayers affected by midyear withholding changes.

Additional Resources

For the most current tax forms, instructions, and local sales tax rates, consult the Utah State Tax Commission website or a qualified tax professional familiar with Utah tax law.