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Utah State Taxes


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%.

Utah Capital Gains

Additionally, Utah does not differentiate their tax rates between capital gains or ordinary income, e.g. Utah capital gains is also 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 and Property Taxes in Utah

Sales tax – 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.

Payroll 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

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