Taxes in Utah
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State tax laws aren’t particularly kind to Utah residents — it’s one of the few states that levies retirement taxes. Below, we explain various Utah state taxes affecting retirement income, such as sales tax, inheritance tax, and property taxes.
For information regarding taxes in other states, see Retirement Taxes by State.
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Utah Tax Rates
|State Sales Tax||6.1%|
|Avg State/Local Sales Tax||7.19%|
|Gas Tax||$0.36 per gallon|
|Diesel Tax||$0.36 per gallon|
|Cigarette Tax||$0.62 per pack|
|Effective Tax Rate:||4.95%|
|Social Security Tax||Yes|
|Federal Income Tax Deduction:||Yes|
Utah State Taxes Explained
Utah Sales Tax
6.1%, plus a max local sales tax rate of 2.95%. Utah’s fuel taxes, which are adjusted based on a three-year average fuel price, increased by 4.5 cents in 2023.
Utah Income Taxes
Utah has a flat tax of 4.85%.
Utah Property Taxes
Tax areas are responsible for setting Utah’s property tax rates. The average effective rate is low at 0.63%. The state’s median home value is $270,100, which would incur $1,748 in taxes annually.
Homeowners and renters over the age of 65 (and surviving spouses of any age) are eligible for a circuit breaker tax credit permitting an abatement of 50% of the property taxes due. Those who own homes and mobile homes also receive an additional credit equal to the tax on 20% of their property’s fair market value. Homeowners who qualify for the circuit breaker usually also qualify for an additional abatement or deferral.
See Utah Tax Commission’s Circuit Breaker information for current qualifying income and benefit levels. Taxpayers with a disability or extreme hardship and are younger than 65 may also qualify for this tax relief. Visit the Utah Tax Commission site.
Utah Retirement Taxes
Taxpayers age 65 and older are eligible for an income tax credit of up to $450, or $900 if filing jointly. Qualifying modified adjusted gross income levels are under $25,000 (single filers) or $32,000 (joint filers). Visit the Utah State Tax Commission for more information.
Utah offers a federal tax credit for low- and middle-income households. The amount of the credit phases out by 2.5% for each dollar modified AGI exceeds $30,000 (single filers) or $50,000 (joint filers).
Military income of a nonresident service member serving in Utah and their nonresident spouse’s earned is exempt from Utah state income tax. Utah tax law mentions no special provisions for military pensions, which are taxed as income. Those older than 65 are entitled to the $450 or $900 tax credit discussed above.
Utah Estate and Inheritance Taxes
There is no inheritance tax or estate tax in Utah. Utah’s estate tax is called a pick up tax because Utah picks up all or a portion of the credit for state death taxes allowed on the federal estate tax return.
For further information, visit the Utah State Tax Commission.