How Utah taxes retirement income
Utah does not tax Social Security benefits. Pensions and 401(k)/IRA withdrawals are taxed as ordinary income. Social Security benefits, pensions, and 401(k)/IRA withdrawals are all included in Utah taxable income and taxed at the flat 4.45% rate. Taxpayers may then claim ONE of three mutually-exclusive nonrefundable credits (claiming one disqualifies the others): (1) Social Security Benefits Credit (UCA 59-10-1042) = 4.45% of the federally-taxable Social Security benefit, phasing out at 2.5% of Modified AGI above $54,000 single/HOH, $90,000 MFJ, or $45,000 MFS (2025 thresholds; indexed), this fully offsets the state tax on Social Security for filers under the threshold, tapering to zero above it; (2) a general Retirement Credit (UCA 59-10-1019) of up to $450 per qualifying individual ($900 if both spouses qualify; must be born on or before Dec 31, 1952 for the 2025 tax year), phasing out at 2.5% of Modified AGI above $25,000 single, $32,000 MFJ/HOH, or $16,000 MFS; or (3) a Military Retirement Credit (UCA 59-10-1043) = 4.45% of taxable military retirement pay, with no phase-out. There is no blanket retirement-income exemption; the benefit is entirely credit-based and income-limited.
Retirement income tax in Utah, at a glance
| Income type | Taxed by Utah? |
|---|---|
| Social Security | Yes |
| Pensions | Yes |
| 401(k) / IRA withdrawals | Yes |
| Estate / inheritance tax | None |
| Avg. property tax rate | 0.48% of home value |
Does Utah tax Social Security benefits?
Yes, Utah taxes some Social Security income.
Does Utah tax pensions and 401(k) or IRA withdrawals?
Yes. Utah taxes pension income and 401(k)/IRA withdrawals as ordinary income. Social Security benefits, pensions, and 401(k)/IRA withdrawals are all included in Utah taxable income and taxed at the flat 4.45% rate. Taxpayers may then claim ONE of three mutually-exclusive nonrefundable credits (claiming one disqualifies the others): (1) Social Security Benefits Credit (UCA 59-10-1042) = 4.45% of the federally-taxable Social Security benefit, phasing out at 2.5% of Modified AGI above $54,000 single/HOH, $90,000 MFJ, or $45,000 MFS (2025 thresholds; indexed), this fully offsets the state tax on Social Security for filers under the threshold, tapering to zero above it; (2) a general Retirement Credit (UCA 59-10-1019) of up to $450 per qualifying individual ($900 if both spouses qualify; must be born on or before Dec 31, 1952 for the 2025 tax year), phasing out at 2.5% of Modified AGI above $25,000 single, $32,000 MFJ/HOH, or $16,000 MFS; or (3) a Military Retirement Credit (UCA 59-10-1043) = 4.45% of taxable military retirement pay, with no phase-out. There is no blanket retirement-income exemption; the benefit is entirely credit-based and income-limited.
For the mechanics of required withdrawals in retirement, see what is an RMD.
Sources
- Utah taxation of retirement income (Social Security, pensions, 401(k)/IRA): Utah Department of Revenue / Taxation.