Utah income tax rate for 2025 and 2026: 4.5% and 4.45%

Utah has one tax rate for all income levels. The Legislature cut it from 4.55% to 4.5% for 2025 (HB 106 of 2025) and to 4.45% for 2026 (SB 60 of 2026). SB 60 took effect May 6, 2026 but applies to the whole 2026 tax year, and the Tax Commission’s withholding tables use 4.45% for pay periods from June 1, 2026. The Commission’s tax rates web page still showed 4.5% as current in November 2026; the statute, Utah Code 59-10-104, says 4.45%.

Credits tied to the rate, such as the Social Security and military retirement credits, are figured at 4.45% for 2026 as well. Under the Utah Constitution, income tax revenue goes to public and higher education and to services for children and people with disabilities.

A Utah return starts from federal adjusted gross income, adds and subtracts Utah items, and multiplies the result by the rate. Utah has no standard deduction or personal exemption deduction. Instead it gives a taxpayer tax credit: 6% of your federal standard deduction (or federal itemized deductions minus state income tax) plus a Utah personal exemption for each dependent. That credit is then reduced by 1.3 cents for each dollar of Utah taxable income above a base amount for your filing status.

Because the credit starts from your federal deduction, the higher federal standard deduction under the July 2025 tax law raises it. Separately, a filer whose income is at or below the federal standard deduction owes no Utah tax at all.

For example, a single filer with $60,000 of wages for 2025 owes $2,700 before credits at 4.5%. The taxpayer tax credit is 6% of the $15,750 federal standard deduction, $945, less 1.3% of the $41,787 of income above $18,213, $543, so $402. The Utah tax is about $2,298. For 2026, at 4.45% and the draft 2026 figures, the same wages give about $2,241.

The July 2025 federal tax law (Public Law 119-21) created deductions for 2025 through 2028 for qualified tips (up to $25,000), overtime pay (up to $12,500, or $25,000 joint), car loan interest (up to $10,000) and an extra $6,000 for each person 65 or older. They are taken after federal AGI and are separate from the standard or itemized deduction Utah uses for its credit. The Tax Commission says they “will have no effect on the Utah return”, so tips and overtime stay taxable in Utah.

The one exception is the senior deduction, which counts in the test for whether your income is low enough to owe no Utah tax. The larger federal standard deduction and the higher federal cap on state and local tax deductions do carry into the taxpayer tax credit.

Yes, Utah taxes Social Security that is taxable federally, and pensions and IRA withdrawals as well, but it offers credits that cancel much of the tax. You can claim only one of the Social Security, retirement and military retirement credits on a return.

Utah’s credits come off the tax, and none of these is paid to you beyond what you owe. Part-year residents and nonresidents get a prorated share.

File a Utah return, Form TC-40, if you are a resident or part-year resident who must file a federal return, if you are a nonresident with Utah income who must file federally, or to get back Utah tax overpaid. Part-year residents and nonresidents add Form TC-40B, which charges Utah tax on the share of income from Utah; nonresidents still enter their full federal AGI. The 2026 forms are redesigned with new seven-character credit codes.

2025 returns were due April 15, 2026, and 2026 returns are due April 15, 2027. Utah gives an automatic six-month extension to file, with no form, but to avoid a penalty you must have paid at least 90% of this year’s tax or 100% of last year’s by April 15; a shortfall costs 2% of the unpaid tax a month, up to 12%. Utah does not require quarterly estimated tax payments.

Check a Utah refund with “Where’s My Refund” on the Tax Commission’s Taxpayer Access Point, linked from incometax.utah.gov/refunds; choose an individual income tax refund. It covers only the current filing year.

The Commission cannot issue a refund before March 1 unless it has both your return and your employer’s returns, and to protect against identity theft it asks you to allow 120 days from filing, or from March 1 if later. A paper return takes at least 90 days. A refund can be taken for federal or state debts you owe.

Utah decides residency by domicile. You are automatically domiciled in Utah if you or your spouse claim a dependent enrolled in a Utah public K-12 school, attend a Utah public college as a resident student, or voted in Utah during the year without registering elsewhere. Otherwise the question is whether Utah is your permanent home, judged by a list of factors; keeping a home here and spending 183 days or more in the state is one factor, not an automatic test. If one spouse is domiciled in Utah, the other is presumed to be too.

Utah residents pay Utah tax on income earned anywhere, and claim a credit for income tax paid to another state on Form TC-40S; there is no credit for tax paid to a foreign country, and nonresidents cannot claim it. Utah’s guidance describes no reciprocal agreement with other states. A nonresident who works in Utah for 20 days or less, has no other Utah income and lives in a state with no income tax, or one that exempts such workers, does not owe Utah tax on that pay.