Utah state income tax
Utah has a state income tax. It is flat, with a top marginal rate of 4.45%. Single flat rate of 4.45% applied to all Utah taxable income of a resident individual (UCA 59-10-104). No graduated brackets. Rate was cut from 4.5% to 4.45% by S.B. 60 (2026 General Session), signed by Gov. Cox, retrospective to tax years beginning on or after January 1, 2026 (this is Utah's sixth consecutive annual rate cut). A floor substitute of S.B. 60 briefly proposed a second bracket (5.15% on individual/estate/trust income over $1,000,000) but that provision was dropped before passage; the enrolled law keeps Utah fully flat. Capital gains are taxed as ordinary income (no special lower rate).
Does Utah have a state income tax?
Yes. Utah taxes individual income on a flat schedule topping out at 4.45%. Single flat rate of 4.45% applied to all Utah taxable income of a resident individual (UCA 59-10-104). No graduated brackets. Rate was cut from 4.5% to 4.45% by S.B. 60 (2026 General Session), signed by Gov. Cox, retrospective to tax years beginning on or after January 1, 2026 (this is Utah's sixth consecutive annual rate cut). A floor substitute of S.B. 60 briefly proposed a second bracket (5.15% on individual/estate/trust income over $1,000,000) but that provision was dropped before passage; the enrolled law keeps Utah fully flat.
| Item | Utah |
|---|---|
| State income tax | Yes, flat |
| Top marginal rate | 4.45% |
| Capital gains | Taxed as ordinary income, up to 4.45% |
| State sales tax | 4.85% (plus local) |
| Avg. property tax rate | 0.48% of home value |
| Estate / inheritance tax | None |
How does Utah tax capital gains?
Utah has no separate, lower rate for capital gains. They are taxed as ordinary income at the same rates as your wages, up to 4.45%, on top of federal capital gains tax. See how capital gains tax works in 2026.
What about retirement income in Utah?
Retirement income is taxed differently from wages in many states. For how Utah treats Social Security, pensions, and 401(k)/IRA withdrawals, see Utah retirement taxes.
Sources
- Utah income tax rates and brackets: Utah Department of Revenue / Taxation.
- Utah capital gains treatment: Utah tax authority.
- Utah sales tax: Utah Department of Revenue.