STATE RANKING #20

Quick facts: 

-Utah has a flat income tax.

-Utah has the 9th lowest property tax rate in the country.

4.95%

State Income Tax

State
Income
Tax

4.95%

Cost of Setting Up A Business

state
business
tax

LOW

Property
Taxes

7.18%

Sales
Tax (average)

State Income Taxes in Utah

The state of Utah is one of a few states with a flat individual income tax. Similar to states such as Colorado and IllinoisUtah’s individual tax rate is a percentage of your Federal Adjusted Gross Income, which is only 4.95%.

State Business Taxes in Utah

The state of Utah has a flat Corporate Tax rate of 4.95%. The Corporate tax is often referred to as a Franchise Tax. The Franchise tax is assessed only on C Corporations.

For other business entities that are flow-thru entities, such as S Corporations, Partnerships, LLCs, etc., since it flows-thru to the individual level, there is no business tax on those entities. However, those entities are subject to the individual income tax rate, which is also 4.95%.

Sales Taxes in Utah

Like many states, Utah has multiple tax rates. One at the state level and another at the local level. The state rate is 6.10% the average local rate is 1.08% (total average rate for Utah Sales Tax is 7.18%). Utah is the most recent state to have increased their tax rate, changing it from 5.95 to 6.10 percent in April 2019.

Property Taxes in Utah

The average property tax rate for residential property in the state of Utah is 0.62%, making it one of the lowest property tax rates in the country.

Unemployment taxes in Utah

Unemployment taxes usually consist of three factors. They are the wage base, range of rates, number of schedules. Below is an outline of the three:

  • Wage Base – Utah has a wage base of $35,300 for 2020
  • UI Rates – range from 0.15% to 7.10%.
  • Schedules – Utah has a single schedules regarding UI.

Utah Business Entities - LLCs

Utah is an inexpensive state to to set up your LLC. Here are some important facts:

  • Utah’s annual LLC fee is only $20
  • When you register with the state, you pay a one time fee of $70
  • Secretary of State of Utah website – click here
  • If you would like help setting up your LLC, we recommend using IncFile.com. They are simple and easy to use.

State #19

State #21