Utah Tax and CPA Services: State, County and City Taxes

Utah taxes individual income at one flat rate, lets many pass-through businesses pay tax at the entity level through an election with an unusual year-end deadline, and layers local sales taxes that change by quarter. It also gives homeowners a 45% property exemption, but only if you apply on time. This guide is written for tax year 2025 returns and 2026 planning.

A flat income tax with credits layered on top

The Tax Commission's rate page shows 4.5% for tax year 2025, applied to Utah taxable income on the TC-40 with no brackets. The rate was the current one when we checked, but because the Legislature adjusts it, confirm the figure for 2026 estimates and withholding. Relief for retirement and Social Security income comes through credits: retirement and Social Security benefits credits are claimed on the TC-40A, and a taxpayer tax credit appears on line 20 of the TC-40. Nonrefundable means a credit can reduce tax to zero but is not refunded, and nonresidents and part-year residents must apportion credits.

The pass-through entity election and its year-end rule

Utah lets a pass-through entity with Utah-source income pay tax at the entity level, a structure often used as a federal SALT-cap workaround. The Commission's SALT guidance says to file the TC-75 SALT report and pay online on or before the last day of the entity's tax year. For a calendar-year entity electing for 2026, that means December 31, 2026. Late payments are not valid and are refunded.

• Disregarded entities, such as single-member LLCs, cannot elect, and only the entity that directly owns individuals can elect.
• The election is irrevocable once a valid payment is made.
• Owners add the tax back to Utah income and claim a nonrefundable credit that carries forward up to ten years.

S corporations file the TC-20S, partnerships and LLCs file the TC-65, and Utah withholding applies to nonresident owners. Our S corporation guide covers the federal side.

Sales tax: layers that keep changing

The state rate in the Commission's 2026 rate charts is 4.70%. County, city, transit and resort taxes add to it, so combined rates in the first-quarter 2026 chart run from 6.35% in unincorporated Beaver County to 9.55% in Park City, among the examples we reviewed.

Local rates changed again in 2026. Tax Bulletins 4-26 and 15-26 announced new county, city and resort taxes effective April 1 and October 1, and restaurant and room taxes are separate. Always use the current quarter chart or lookup tool.

Publication 25 sets economic nexus at more than $100,000 of Utah sales in the current or prior year, with no transaction-count test. The Commission's filing table assigns quarterly filing up to $50,000 of annual liability, monthly filing above that, and mandatory EFT payments at $96,001 or more. Returns are filed through the Taxpayer Access Point (TAP). See our sales tax service.

Property tax and the 45% exemption

County officials value property and send bills. A primary residential exemption reduces taxable value to 55% for a home occupied as a primary domicile for at least 183 consecutive days, one per household. Submit Form TC-473A to the county board of equalization by September 15; late applications cannot be accepted. Beginning January 1, 2027, a new form is required if ownership changes. Second homes do not qualify. Taxing entities that want more than the certified rate must hold truth-in-taxation hearings, and relief programs include circuit-breaker credits for qualifying homeowners and renters.

Payroll, unemployment and workers' compensation

The Department of Workforce Services lists a $50,700 taxable wage base for 2026 and overall rates from 0.1% to 7.1%, built from a benefit ratio, a 1.10 reserve factor and a .001 social cost. New out-of-state contractors are assigned the maximum rate unless they buy an existing business. Third-quarter 2026 reports are due October 31, 2026, and new hire reports go through the same portal. See our unemployment insurance guide.

The Labor Commission says that, with few exceptions, all employers must provide workers' compensation. Entities renew annually with the Division of Corporations.

Wasatch Front, border states and remote work

Utah residents who work across the line in Idaho or Colorado, or remotely for an out-of-state employer, may file in more than one state. Most states tax wages where the work is physically performed, though a few apply special remote-work rules, so track the days you work in each place. Our pages for Colorado and Idaho cover those rules.

How we can help

We help with Utah returns for residents and part-year residents, decide whether the entity election suits an S corporation or partnership before the year-end cutoff, and set up TAP, withholding and unemployment accounts. We also review local sales tax sourcing and respond to state tax notices. See multi-state tax.

Frequently asked questions

General information only, not tax, legal or accounting advice for your situation. Rules, limits and deadlines change; confirm the current rules with the official source or a qualified professional before you act. Reading this page does not create a professional relationship with CPA Tax Payroll and Accounting Corp.