Utah Sales Tax Guide 2025: The Newest Regulations

Are you navigating the complexities of Utah’s taxation system? Whether you’re a resident, business owner, or planning a move to the Beehive State, understanding Utah’s tax structure is essential for managing your financial responsibilities efficiently. This guide will walk you through everything you need to know about Utah’s state taxes, including sales tax, exemptions, and more.

Utah Sales Tax

Utah sales tax law, established in 1933, applies a 4.85% state sales tax on retail goods and taxable services, with local rates varying. The sales tax in Utah is complemented by the Utah sales and use tax, which ensures compliance for in-state and out-of-state purchases.

Utah Sales Tax Rate

Utah’s base sales tax rate is 4.7%, with local tax rates varying by jurisdiction, resulting in a total sales tax rate range of 4.7% to 8.7%.

Jurisdiction	Sales Tax Rate
State Tax	4.70%
County Tax	0%–4.00%
City Tax	0%–4.00%
Special Tax	0.00%
Combined Tax	4.70%–8.70%

For more information on city-based tax rates in Utah, check out Kintsugi’s City Level Sales Tax Guides.

Utah Sales Tax Calculator

Imagine you own a retail store in Salt Lake City, Utah, where the combined sales tax rate (state + local) is 7.75%. A customer buys a laptop priced at $1,200, and you need to calculate the sales tax and the total amount the customer will pay.

Step 1: Determine the Total Sales Tax Rate

The total sales tax rate in Utah includes:

State Tax Rate: 4.7%
Local Tax Rate in Salt Lake City: 3.05%

Use the formula for calculating the total sales tax rate:

Total Sales Tax Rate = State Tax Rate + Local Tax Rate

Plug in the values:

4.7% + 3.05% = 7.75 (or 0.0775 in decimal form)

Step 2: Calculate the Sales Tax

Use the formula for calculating sales tax:

Sales Tax = Item Price × Total Sales Tax Rate

Plug in the values:

Sales Tax = 1,200 × 0.0775 = 93

The sales tax on the $1,200 laptop is $93.00.

Step 3: Calculate the Total Price

Add the sales tax to the original price of the item to determine the total amount the customer will pay:

Total Price = Item Price + Sales Tax

Total Price = 1,200 + 93 = 1,293

Final Answer:

The total price of the laptop, including sales tax, is $1,293.00.

Additional Considerations:

Local Tax Variations: Sales tax rates differ across Utah cities and counties. Use the Utah Tax Commission’s Sales Tax Rate Lookup to determine the exact rate for a specific location.
Exemptions: Certain items, such as prescription drugs and groceries, may qualify for reduced rates or exemptions.
Remote Sellers: If you sell online to Utah customers and exceed the economic nexus threshold of $100,000 in gross sales or 200 transactions annually, you must collect and remit sales tax based on the customer’s location.

By following this method, Utah businesses can accurately calculate sales tax and ensure compliance with state and local legislation and regulations.

FAQ on Sales Tax in Utah

What is the Tax Rate in Utah for 2025?

Utah’s state sales tax rate is 4.7%, with total rates (state + local) ranging from 4.7% to 8.7% depending on the jurisdiction.

What is the Sales Tax Rate in Utah?

The base state sales tax rate in Utah is 4.7%, with additional local taxes varying up to 4.0%, resulting in a total range of 4.7% to 8.7%.

How to Calculate Sales Tax in Utah?

Multiply the item price by the combined state and local tax rate. For example, on a $100 item at 7% total tax: $100 × 0.07 = $7.

Is Sales Tax Calculated Before or After Discounts in Utah?

Sales tax in Utah is calculated after discounts have been applied to the purchase price.

Sales Tax Nexus in Utah

Utah’s base sales tax rate is 4.7%, and businesses must register for sales tax collection if they meet physical or economic nexus thresholds.

Effective Date	Threshold	Includable Sales (Gross, Retail, or Taxable)	When You Need to Register
January 1, 2019	$100,000 in gross sales or 200 transactions annually	Gross Sales	Upon exceeding the threshold in the current or previous calendar year.
Ongoing	Any physical presence in Utah	Retail and Taxable Sales	Immediately upon establishing physical presence, such as an office, warehouse, or employees.

FAQ on Sales Tax Nexus in Utah

What is the Sales Tax Nexus in Utah?

Sales tax nexus in Utah is established through physical presence (e.g., office, employees) or economic activity exceeding specific thresholds.

What is the Sales Tax Nexus threshold in Utah?

The nexus threshold in Utah is $100,000 in gross sales or 200 or more transactions annually in the state. Remote sellers exceeding these thresholds must register and collect sales tax.

Utah Sales Tax Exemptions

Utah offers various sales tax exemptions to support industries, government entities, and nonprofits. These exemptions apply to qualifying purchases such as manufacturing equipment, agricultural supplies, and charitable organization transactions.

Category	Exemption Description
Manufacturing Equipment	Machinery and equipment used in manufacturing are exempt when directly involved in production.
Agricultural Supplies	Seeds, fertilizers, and other farming equipment used for agricultural purposes are exempt.
Nonprofit Organizations	Qualifying nonprofits can claim exemptions for purchases directly related to their charitable activities.
Government Purchases	Sales to federal, state, and local government entities are exempt from sales tax.
Resale Items	Goods purchased for resale are exempt when accompanied by a valid resale certificate.
Prescription Drugs	Prescription medications and certain medical devices are exempt from sales tax.

FAQ on Sales Tax Exemptions in Utah

What is the Utah Vehicle Sales Tax Exemption?

Utah provides sales tax exemptions for certain vehicle purchases, such as those made by government agencies, nonprofits, or when vehicles are purchased for resale by dealerships. More details on exemptions can be found on the Utah State Tax Commission website.

How do I Apply for a Utah State Sales Tax Exemption?

To apply for a Utah sales tax exemption, businesses or individuals must complete Form TC-721, Utah’s Exemption Certificate, and submit it to the seller for eligible transactions. For more details, check this blog on Utah sales tax exemptions or consult the 2025 exemption guide.

What is the Utah SaaS Sales Tax?

SaaS (Software as a Service) is taxable in Utah as it is categorized under tangible personal property. This includes cloud-based software subscriptions and digital services. Learn more in this blog on Utah SaaS sales tax.

What is the Utah Sales Tax Clothing?

Utah applies the same combined state and local sales tax rate to clothing as it does to other retail items, ranging from 4.7% to 8.7% depending on the jurisdiction. See this blog on Utah clothing tax policies for additional insights.

What is a Qualified Exempt Taxpayer in Utah?

A qualified exempt taxpayer in Utah is an individual or entity eligible for sales tax exemptions, such as nonprofits, government agencies, or manufacturers using materials directly in production.

Does Utah Sales Tax Exemption Expire?

Yes, Utah sales tax exemption certificates typically expire after a designated period, usually every three to five years. Renewal ensures compliance and continued tax exemption eligibility.

How to Get a Utah Sales Tax Exemption Certificate?

Businesses can obtain a Utah Sales Tax Exemption Certificate by completing Form TC-721 and providing documentation proving their eligibility. This form must be presented to sellers for tax-exempt purchases.

What Items are Exempt from Utah Sales Tax?

Items exempt from Utah sales tax include prescription drugs, manufacturing equipment, agricultural supplies, and certain nonprofit purchases. A full list of exemptions can be found in the Utah Tax Commission exemption guide.

How to Apply for Sales Tax Exemption in Utah?

To apply for sales tax exemption in Utah, complete and submit Form TC-721 to the seller for eligible transactions. For businesses, register with the Utah State Tax Commission to confirm exemption status.

Does Utah Sales Tax Exemption Expire?

Yes, sales tax exemptions in Utah expire periodically and must be renewed to maintain eligibility. The expiration period varies depending on the type of exemption.

Utah Sales Tax Filing

Utah Sales Tax Filing Requirements?

Utah businesses must file sales tax returns electronically through the Utah Taxpayer Access Point (TAP). Filing includes reporting gross sales, taxable sales, tax collected, and overall tax collections.

When to File Taxes in Utah?

Taxes in Utah must be filed based on the assigned frequency—monthly, quarterly, or annually—determined by the volume of taxable sales.

How Often do I Need to File Sales Tax in Utah?

The filing frequency depends on sales volume: high-volume businesses file monthly, moderate-volume businesses file quarterly, and low-volume businesses file annually.

Do you Want to Voluntarily File Your Sales Tax on a Monthly Basis in Utah?

Yes, businesses in Utah can voluntarily file monthly if they wish, even if assigned a less frequent schedule, to better manage cash flow and compliance.

How can I Apply for Utah Sales Tax Registration?

Registering for sales tax in Utah is an essential step for businesses selling taxable goods or services in the state, especially those participating in the streamlined sales tax program. The Utah Tax Commission provides an easy-to-use online platform for registration, ensuring compliance with state tax regulations.

Visit the Utah Tax Commission Website: Navigate to the Utah Tax Commission Sales Tax page for information about sales tax and access to the registration portal.
Access the Utah Taxpayer Access Point (TAP): Click the link to the Taxpayer Access Point (TAP), the state’s online system for tax registration, filing, and management.
Create an Account in TAP: If you are a new user, click "Sign Up" to create an account. Provide your email address, set up a secure password, and verify your account through an email confirmation.
Log In to Your TAP Account: Use your new credentials to log in to TAP. From the dashboard, click on "Apply for a New Business Tax Account."
Start the Sales Tax Registration Application: Select “Sales and Use Tax” as the tax type to register for. This will take you to the application form for sales tax registration.
Provide Business Information:
- Legal business name and structure (e.g., sole proprietorship, LLC, corporation)
- Federal Employer Identification Number (FEIN) or Social Security Number for sole proprietors
- Business mailing and physical address
- Description of goods or services sold.
Add Additional Locations (if applicable): If your business operates in multiple locations, provide the address and details for each location where taxable sales occur in Utah.
Indicate Your Start Date: Enter the date your business began or will begin taxable sales in Utah. This ensures proper tax collection from the start.
Review and Submit the Application: Carefully review all the information you’ve entered for accuracy. Submit the completed application through TAP.
Receive Your Sales Tax License: After processing, you’ll receive your Utah Sales Tax License. This allows your business to collect and remit sales tax on taxable goods and services.
Start Collecting and Filing Sales Tax: Begin collecting Utah’s combined state (4.7%) and local sales tax rates. Use TAP to file and remit your sales tax returns based on your assigned filing frequency.

By completing these steps, businesses in Utah can efficiently register for sales tax and ensure compliance with state tax requirements. For additional assistance, visit the Utah Tax Commission Sales Tax page.

Utah Sales Tax Due Date

Filing Frequency	Due Date
Monthly	30th of the following month
Quarterly	Last day of the month following the quarter's end
Annually	January 31st of the following year

What is the Date of Utah Sales Tax Due?

Utah sales tax is generally due on the 30th of the month following the reporting period.

What is the Penalty for Filing Sales Tax Late in Utah?

Late filing incurs a penalty of 2% of the unpaid tax per month, up to a maximum of 20%, plus interest on the outstanding balance. Additional fees may apply for extended delays.