Income tax in Utah is a flat rate, leading the state to depend much more heavily on sales taxes, such as taxing food and food ingredients. Property taxes, although being a local arrangement only, will contribute to the overall tax burden for Utah residents. Tax returns are due on April 15.
Utah state sales/use tax – 4.7%, prescription drugs exempt, uniform local sales tax adds 1%. Other local sales taxes will incorporate taxes for mass transit, local hospitals, high way taxes and even zoo taxes. With these added taxes, the combined local-state sales tax rate can be as high as 7.95%. Food and food ingredients are taxed at a uniform 3% statewide.
Utah personal income tax
There is only one tax rate in Utah, a flat 5%
Utah excise taxes
Taxes will be assessed on alcohol, tobacco, gasoline and other miscellaneous items, at the discretion of the state.
- $.64 per package of 20 cigarettes
- $11.41/gallon on spirits
- State run stores sell wine and collect profits as tax
- $.41 per gallon of beer
- $.245/gallon on gasoline
Utah inheritance tax
There is no inheritance or estate taxes in Utah. The estate tax ended after the federal government eliminated federal estate tax credits in 2005.
Utah payroll taxes
State Disability Insurance – none
State Unemployment Insurance – 0.4% to 9.40%, wage base is $28,600. Out of state contractors are assigned the maximum rate of 9.4%. All other industries pay a variable rate, determined by the industry.
State minimum wage follows federal minimum wage law.
Utah state property tax
Utah property tax is collected locally only. Property is assessed at 100% of market value, unless exemptions are in effect that lower the assessment by as much as 45%. Every property is assessed by May 22, every year. Property values are assessed by the country assessors and the taxes are determined based on the fair market value of the property.
Vessels over 31 feet, commercial trailers and heavy duty trucks are taxed a t a state-wide 1.5% annually, motor homes at 1% of value annually, and a flat $25 fee on aircraft.
Utah state corporate tax
All corporations in Utah pay a flat, 5% tax.
There are four programs to reduce property taxes for Utah residents. This includes a “circuit breaker” to limit sharp increases in taxes for residents over 65, as well as exemptions for veterans, blind and indigent. The veteran’s exemption allows for up to $232,312 of the value of the residence.
Those receiving retired military pay, under the age of 65 can deduct up to $4,800 and $7,500 after the age of 65. There are also tax credits on retirement income.Utah taxpayers can deduct up to 50% of federal taxes.