Utah Tax Calculator 2026

Utah Tax Overview

Utah Flat Income Tax Rate 2026

Utah imposes a flat income tax rate of 4.65% on all taxable income, regardless of the amount. This rate has been reduced several times in recent years, down from 5% in 2021 and 4.85% in 2022. The flat tax structure makes Utah's income tax simple and predictable: every dollar of taxable income is taxed at the same rate.

A distinctive feature of Utah's income tax is that it is constitutionally earmarked for education. A 1946 amendment to the Utah Constitution requires that all individual income tax revenue be used exclusively for public education (K-12) and higher education. This gives Utah's income tax a direct and transparent connection to funding schools and universities, which has contributed to public support for the tax.

Utah Taxpayer Tax Credit

Utah offers a unique taxpayer tax credit that effectively provides the equivalent of a standard deduction. The credit is 6% of the federal standard deduction amount (approximately $900 for single filers and $1,800 for married filing jointly). This credit phases out at higher income levels, making Utah's flat tax slightly progressive in practice even though the rate is the same for all income levels.

Utah Sales Tax

Utah's sales tax system consists of a 6.1% combined state rate (4.85% state + 1.25% mandatory local) plus additional local option taxes. The average combined rate across Utah is approximately 7.19%. Major cities tend to have rates at or slightly above this average.

Utah Sales Tax Rates by Area

• Salt Lake City — Approximately 7.75% combined rate
• Provo/Utah County — Approximately 7.25% combined rate
• Ogden/Weber County — Approximately 7.10% combined rate
• St. George — Approximately 6.75% combined rate
• Park City — Approximately 8.35% combined rate (resort tax)

Grocery Tax

Utah taxes groceries at a reduced rate of 3% (1.75% state + 1.25% local). This reduced rate applies to unprepared food items. Prepared food, restaurant meals, and vending machine sales are taxed at the full combined rate.

Utah Property Tax

Utah's effective property tax rate of approximately 0.52% is among the lowest in the nation and well below the national average of about 1.07%. This is partly due to Utah's truth-in-taxation system, which automatically reduces property tax rates as property values increase to keep revenue neutral. If a local government wants to collect more than the certified revenue, it must hold public hearings and formally vote to increase the rate.

Residential property in Utah is assessed at 55% of fair market value for school taxes, with the remaining 45% exempt. This primary residential exemption significantly reduces the effective tax burden for homeowners. The statewide average mill rate varies, but the 55% assessment ratio makes Utah property taxes very competitive.

Utah Education Funding Model

Utah's unique constitutional earmark of income tax revenue for education makes the state's tax structure particularly noteworthy. The flat 4.65% income tax generates approximately $5 billion annually for education, funding both K-12 public schools and the Utah System of Higher Education. This direct link between income tax and education spending has several implications:

• Transparent funding — Taxpayers can see exactly where their income tax goes
• Stable education funding — Income tax provides a more stable revenue base than sales tax alone
• Growth alignment — As the economy grows and incomes rise, education funding automatically increases
• Political constraint — Any income tax cut directly reduces education funding, creating a political counterweight to tax reduction efforts

Despite this dedicated funding, Utah's per-pupil spending remains among the lowest in the nation due to the state's large average family size (Utah has the highest birth rate in the US), which spreads education dollars across more students.

Utah vs. Neighboring States

• Wyoming — No income tax, 4% sales tax + local (~5.36%), 0.55% property tax. Wyoming has no income tax but a less developed economy and fewer urban amenities.
• Colorado — 4.4% flat income tax, 2.9% state sales tax + local (~7.77%), 0.49% property tax. Very similar overall tax structure to Utah with a slightly lower income tax rate.
• Idaho — 5.695% flat income tax, 6% sales tax, 0.58% property tax. Higher income tax but similar sales and property tax rates.
• Nevada — No income tax, 6.85% state sales tax + local (~8.23%), 0.53% property tax. Nevada trades zero income tax for higher sales taxes.
• Arizona — 2.5% flat income tax, 5.6% state sales tax + local (~8.37%), 0.51% property tax. Lower income tax but higher effective sales tax.

Use our comparison tool to calculate exact tax differences for your income level.