Taxes are a common theme on news shows in the U.S.; you may have even seen the Tax Foundation’s very own Kyle Pomerleau speaking about the presidential candidates’ tax plans. However, Americans rarely see a sitcom or...
The facts on Utah’s Tax Climate
5%Individual Income TaxFlat rate
5%Corporate Income TaxFlat rate
$945Property TaxCollections Per Capita
Utah's Individual Income Tax System
Utah's personal income tax system consists of a flat rate of 5%. That rate ranks 20th lowest among states levying an individual income tax. Utah's state and local income tax collections per person were $870 in 2012 which ranked 22nd lowest 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
Utah's Corporate Income Tax System
Utah's corporate income tax system consists of a flat rate of 5%. That rate ranks 12th lowest among states levying a corporate income tax. Utah's state and local corporate income tax collections per person were $91 in 2012 which ranked 14th lowest nationally.
50-State Table of Corporate Income Tax Rates
50-State Table of State and Local Corporate Income Tax Collections Per Capita
50-State Table of State Corporate Income Tax Collections Per Capita
Utah Sales and Excise Taxes
Utah levies a 5.95% general sales or use tax on consumers, which is the same as the national median of 5.95%. The average local sales tax rate is an additional 0.73%. Utah's state and local governments collect $881 per person in general sales taxes and $410 per person in excise taxes, for a combined figure of $1291, which ranks 14th lowest nationally. Utah's gasoline tax stands at 24.5¢ (23rd lowest nationally), while its cigarette tax stands at $1.7 (18th highest nationally.)
50-State Table of State and Local General and Selective Sales Tax Collections Per Capita
Utah Property Tax Collections Relatively Low
Utah's state and local governments collected approximately $945 per person in property taxes in 2012, which ranks 13th lowest nationally.
State and local property tax collections per capita by state
Tax Freedom Day Arrives on April 17th 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 2014, Utah taxpayers worked until April 17th (21st latest nationally) to pay their total tax bill. The Tax Freedom Days of neighboring states are: Idaho, April 11th (ranked 15th earliest nationally); Nevada, April 8th (ranked 7th earliest nationally); Arizona, April 11th (ranked 15th earliest nationally); New Mexico, April 8th (ranked 7th earliest nationally); Colorado, April 22nd (ranked 13th latest nationally); and Wyoming, April 17th (ranked 21st latest nationally).
Utah's State and Local Tax Burden In Line with National Average
Utah's 2011 tax burden of 9.4% ranks 23rd lowest out of 50 states, and is below the national average of 9.8%. Utah's taxpayers pay $3304 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 2015 Business Tax Climate Index Ranks 9
Utah ranks 9th 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, 19th, Nevada, 3rd, Arizona, 23rd, New Mexico, 38th, Colorado, 20th, and Wyoming, 1st.
State Business Tax Climate Index (full study)
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