Utah State Taxes: What You’ll Owe in the 2026 Tax Season

Utah has a flat 4.5 percent income tax and no estate or inheritance tax. This helped place the state in the top 20 of the Tax Foundation’s rankings for most competitively taxed states

• Income tax: 4.5 percent flat tax
• Property tax: 0.47 percent average in 2023, according to the Tax Foundation
• Sales tax: 4.85 percent state sales tax, plus varying local sales taxes
  

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Utah has a 4.5 percent flat tax on income.

In Utah, investment income and capital gains are taxed if they are included in the federal adjusted gross income calculated on an individual’s federal income tax return. Utah taxes that income at 4.5 percent.

Utah taxes Social Security benefits that are included as part of your federal adjusted gross income on your federal tax return. Those benefits are taxed at 4.5 percent.

However, the state offers a full credit for taxes paid on Social Security benefits for people under certain income thresholds, and a partial credit that gradually phases out for people with incomes above those levels. The full tax credit is available to single people with incomes of $54,000 or less; to those married and filing separately with income of $45,000 or less; to those married and filing jointly of $90,000 or less; and to heads of households or qualifying widow(er)s with $90,000 in income or less. The credit is reduced by $1 for every $4 of income above those thresholds. You cannot claim both the Social Security benefits credit and the state’s Retirement Tax Credit, which is for people born on or before Dec. 31, 1952.

The average property tax rate in Utah was 0.47 percent in 2023, according to the Tax Foundation. Rates vary by county; the lowest rate is 0.29 percent in Rich County, and the highest is 0.84 percent in San Juan County. The lowest median property tax paid that year was $846 in Rich County, and the highest median tax paid was $3,469 in Summit County, according to the Tax Foundation.

• Sales tax: The Utah state sales tax rate is 4.85 percent. When combined with local sales taxes that vary by jurisdiction, the rate ranges from 6.35 percent to 8.45 percent. Prescription drugs, medical equipment and newspapers are exempt from sales tax. A full list of exemptions can be found here.
• Gas and diesel: Gas and diesel are taxed at 37.9 cents per gallon.
• Vehicle tax: If a vehicle is purchased in Utah, sales tax is due on the purchase price. Sales tax rates on vehicles vary based on locality and range from 6.35 percent to 8.25 percent. Gasoline-powered passenger vehicles require registration fees, ranging from $100 to $300. Alternative-fuel vehicles and vehicles weighing over 14,000 pounds have higher registration fees. To estimate the fees for your newly purchased vehicle, use the fee estimator on the Utah State Tax Commission website. The annual registration fee also varies, depending on vehicle type, registered weight, county and other factors.
• Alcohol: The Utah sales tax of 4.85 percent, plus local sales taxes, is charged on sales of beer, wine and spirits.
• Lottery: Utah doesn’t have a lottery, but winnings from other states are subject to Utah state income tax to the extent they are included in federal adjusted gross income. The tax rate is 4.5 percent.

Utah does not have an estate or inheritance tax.

• Social Security: Utah taxes Social Security benefits that are included as part of your federal adjusted gross income on the federal tax return and taxed at 4.5 percent. However, the state offers a full credit for taxes paid on Social Security benefits for people under certain income thresholds, and a partial credit for people above those thresholds that gradually phases out at higher income levels. (See above: Does Utah tax Social Security benefits?)
• Retirement Tax Credit: If you (and/or your spouse, if filing jointly) were born on or before Dec. 31, 1952, Utah offers a retirement credit of $450. However, you cannot claim this if you are also claiming Social Security tax credits or military retirement tax credits. Utah residents can choose which credit they want to use.

Utah provides a tax credit for taxable military retirement pay when those amounts are included in federal adjusted gross income. For the credit amount, multiply the amount of taxable military retirement pay by the state’s 4.5 percent income tax rate. You can file for the military retirement tax credit and the Social Security tax credit if you qualify for both, but if you receive either of those credits, you cannot also apply for the retirement tax credit.

For your 2025 tax return, the due date is Wednesday, April 15, 2026.

Valerie Bauman is a journalist and author with two decades of experience working for media outlets, including Newsweek, Bloomberg and The Associated Press. Throughout her career, she’s covered politics and the law, including pharmaceutical litigation, mass torts and election law.