The facts on Utah’s Tax Climate

  • 5%
    Individual Income Tax
    Flat Rate
  • 5%
    Corporate Income Tax
    Flat Rate
  • 5.95%
    Sales Tax
  • $863
    Property Tax
    Collections Per Capita

Utah’s Individual Income Tax System

Utah’s personal income tax system consists of a 5% flat rate on all income. This rate ranks the state 32nd highest among states levying personal income taxes. Utah’s 2010 state-level individual income tax collections were $765 per person, which ranked 22nd highest nationally.

 

50-State Table of Individual Income Tax Rates

50-State Table of State Individual Income Tax Collections

50-State Table of State and Local Individual Income Tax Collections Per Capita

Tax Freedom Day Arrives on April 17 in Utah

Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2012, Utah taxpayers work until April 17 (ranked 17th nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Arizona, April 10 (ranked 35th nationally); Nevada, April 18 (ranked 14th nationally); Idaho, April 17 (ranked 17th nationally); Wyoming, April 23 (ranked 5th nationally); Colorado, April 15 (ranked 21st nationally); and New Mexico, April 12 (ranked 28th nationally).

Utah’s State and Local Tax Burden Slightly Below National Average

Utah’s state and local tax burden is currently estimated at 9.7% of income (20th nationally), just below the national average of 9.8%. Compared to the 1977 data, Utah had a tax burden of 10.2% (22nd nationally), decreasing 0.4% overall. Currently Utah taxpayers pay $3,349 per capita in state and local taxes.
Utah’s State-Local Tax Burden, 1977-Present
Other States’ State/Local Tax Burdens
Map of U.S. Showing all State’s Burdens and Ranks
Historical Chart Comparing All States’ State/Local Tax Burdens from 1977 to 2009

Utah’s 2013 Business Tax Climate Index Ranks 10th

Utah ranks 10th in the Tax Foundation’s State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. The ranks of neighboring states are as follows: Idaho (20th), Nevada (3rd), Arizona (25th), New Mexico (38th), Colorado (18th), and Wyoming (1st).

50-State Comparison of Business Tax Climates (data only)
2013 State Business Tax Climate Index (full study)