🇺🇸 Utah Income Tax — 2026 UPDATE

Utah Income Tax Rates & Brackets (Tax Year 2025 — Filed in 2026)

⚠️Informational only — not legal or tax advice.

Tax year covered: 2025 (returns filed in 2026)
Applies to: Income earned January 1 – December 31, 2025
Returns filed: January – April 2026
Last verified: February 2026

Utah State Income Tax

Table of Contents

Click any item below to jump to the relevant section

Quick Reference

Does Utah have income tax? Yes
Tax structure: Flat rate
Tax rate: 4.5% (flat, all income levels)
Standard deduction (Single): $15,750 (federal standard deduction, mirrored)
Standard deduction (Married Filing Jointly): $31,500 (federal standard deduction, mirrored)
Personal exemption: $2,111 per qualifying dependent
Local income tax: No
Official source: https://tax.utah.gov

Key Takeaways

  • Residents: Utah residents pay Utah income tax on income from all sources worldwide
  • Non-residents: Non-residents pay Utah income tax only on income from Utah sources
  • Tax rate: Utah applies a single flat rate of 4.5% to all taxable income — no brackets
  • Unique system: Utah uses a “Taxpayer Tax Credit” mechanism (6% of deductions and exemptions) that phases out at higher incomes, making the effective tax burden progressive in practice
  • Local income tax: Utah does not permit local income taxes; only state-level tax applies
  • Reciprocity: Utah has no reciprocal agreements with other states; credits apply for taxes paid to other states
  • Primary forms: Form TC-40 (residents and part-year residents), TC-40B (non-residents and part-year residents)

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Quick Questions About Utah Income Tax

What is the Utah income tax rate for 2025?
Utah has a flat income tax rate of 4.5% for Tax Year 2025. This rate applies to all taxable income regardless of filing status or income level. The 2025 Utah Legislature passed HB 106, reducing the rate from 4.55% to 4.5%.

Does Utah have state income tax?
Yes. Utah imposes a flat individual income tax at a rate of 4.5% on taxable income. All state income tax revenue supports education, children, and individuals with disabilities.

What are the income tax brackets in Utah?
Utah does not use income tax brackets. The state applies a single flat rate of 4.5% to all taxable income. However, Utah’s Taxpayer Tax Credit (worth 6% of deductions and personal exemptions) phases out at higher incomes, creating a de facto progressive effective rate.

Is Social Security taxed in Utah?
Federally taxable Social Security benefits are included in Utah taxable income. However, Utah offers a nonrefundable Taxpayer Tax Credit equal to 4.5% of the federally taxable portion of Social Security benefits, which phases out for taxpayers with higher incomes. In 2025, the phase-out thresholds were raised to $54,000 (single), $90,000 (married filing jointly), and $45,000 (married filing separately).

Does Utah tax retirement income?
Utah taxes retirement income (401(k) distributions, traditional IRA withdrawals, private pensions) at the flat 4.5% rate. Utah offers a nonrefundable Retirement Tax Credit for certain taxpayers receiving qualified retirement income. Military retirement pay is eligible for a separate nonrefundable Military Retirement Credit equal to 4.5% of the included amount.

Do I need to file a Utah income tax return?
You must file a TC-40 if you are a Utah resident or part-year resident required to file a federal return, a non-resident with Utah-source income required to file a federal return, or if you want a refund of overpaid Utah income tax. You may be exempt if your federal adjusted gross income is less than your federal standard deduction.

Source: https://tax.utah.gov/individuals/ and https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Utah Income Tax Rates and Brackets (Tax Year 2025, Filed 2026)

Utah does not use a bracketed progressive tax system. Instead, the state applies a single flat rate to all taxable income.

Rate Snapshot
Tax Attribute Amount / Status
Tax Rate 4.5% (flat)
Tax Structure Flat rate
Number of Brackets 1 (flat)
State Income Tax Yes
Local Income Tax No
Standard Deduction (Single) $15,750 (mirrors federal)
Standard Deduction (Married Filing Jointly) $31,500 (mirrors federal)
Standard Deduction (Head of Household) $23,625 (mirrors federal)
Personal Exemption per Dependent $2,111

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf and https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf

How Utah’s Tax Calculation Works

Unlike most states, Utah does not apply brackets. The calculation follows these steps:

  1. Start with Federal Adjusted Gross Income (FAGI)
  2. Apply Utah additions and subtractions (TC-40A)
  3. Arrive at Utah Taxable Income (line 9 of TC-40)
  4. Multiply Utah Taxable Income by 4.5% → this is the initial Utah tax
  5. Subtract the Taxpayer Tax Credit (see below)
  6. The result is your Utah income tax due

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40 Line-by-Line Instructions)

The Taxpayer Tax Credit (Utah’s Progressive Element)

Utah’s Taxpayer Tax Credit makes the system functionally progressive even though there is only one rate.

How it works:

  • Calculate 6% of your total federal standard or itemized deductions, plus personal exemptions
  • This becomes your “Initial Credit Before Phase-out”
  • The credit phases out at 1.3% of income above the base phase-out amount
2025 Base Phase-out Amounts (TC-40, Line 17)
Filing Status Phase-out Begins
Single or Married Filing Separately $18,213
Head of Household $27,320
Married Filing Jointly or Qualifying Surviving Spouse $36,426

For taxpayers with income well above these thresholds, the Taxpayer Tax Credit is reduced to zero, meaning they pay the full 4.5% on their taxable income with no credit offset.

Source: https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf (§59-10-1018(4)-(5))

All Filing Statuses — Utah Flat Rate

Because Utah applies a single rate to all taxable income regardless of filing status, there is no separate bracket table for each filing status. The 4.5% rate applies universally.

Tax Rate by Filing Status
Filing Status Tax Rate
Single 4.5% of taxable income
Married Filing Jointly 4.5% of taxable income
Married Filing Separately 4.5% of taxable income
Head of Household 4.5% of taxable income
Qualifying Surviving Spouse 4.5% of taxable income

The Taxpayer Tax Credit amount and phase-out threshold differ by filing status (see above).

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40, Line 10; UCA §59-10-104)

Legislative History of the Utah Tax Rate
Utah has steadily reduced its flat income tax rate in recent years:
Tax Year Rate
2021 4.95%
2022 4.85%
2023 4.65%
2024 4.55%
2025 4.5%

The 2025 reduction was enacted by HB 106 (2025 General Session), effective for taxable years beginning on or after January 1, 2025.

Source: https://le.utah.gov/Session/2025/bills/introduced/HB0106.pdf and https://tax.utah.gov/commission/reports/fy23report.pdf

Statutory Authority

Utah individual income tax is authorized under the following legal framework:

Constitutional Authority:
Utah Constitution, Article XIII, Section 2 — grants the Legislature authority to impose taxes. Utah has no constitutional prohibition against income taxation.

Statutory Authority:

  • Utah Code Ann. (UCA) §59-10-104 — Individual income tax rate (4.5%)
  • UCA §59-10-1018 — Personal exemptions and Taxpayer Tax Credit
  • UCA §59-10-104.1 through §59-10-114 — Income definitions, subtractions, and additions
  • UCA §59-10-136 — Utah domicile definition
  • Full Utah Tax Code: https://le.utah.gov/xcode/Title59/Chapter10/C59-10.html

Administrative Regulations:

Legislative History:

  • Income tax first enacted: 1931
  • Flat rate structure: longstanding
  • Most recent rate reduction (4.55% → 4.5%): HB 106, 2025 General Session, effective January 1, 2025

This page compiles information directly from these statutory and regulatory authorities as implemented by the Utah State Tax Commission.

Sources: https://le.utah.gov/xcode/Title59/Chapter10/C59-10.html and https://adminrules.utah.gov/public/category/R865

Who Must File Utah Income Tax

Residents

Utah law requires residents to file a TC-40 return if:

  • You are a Utah resident or part-year resident who must file a federal return, OR
  • You are a non-resident or part-year resident with Utah-source income who must file a federal return, OR
  • You want a refund of any Utah income tax overpaid

To file a Utah return, complete your federal return first — even if you are not required to file with the IRS. You need the federal return information to complete your Utah return.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40 General Instructions, “Who Must File”)

Qualified Exempt Taxpayer

You may be exempt from Utah individual income tax if your federal adjusted gross income (FAGI) is less than your federal standard deduction. For this purpose, the federal standard deduction does not include extra deductions for age or blindness. Complete the worksheet on TC-40, line 21 to determine if you qualify.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Line 21 Instructions)

Non-Residents with Utah-Source Income

Non-residents must file if they had Utah-source income and are required to file a federal return. The following non-residents may be exempt from filing:

Non-residents working temporarily in Utah — No return required if you (and your spouse, if filing jointly):

  • Are not a Utah resident
  • Worked in Utah for 20 days or less
  • Have no other Utah-source income
  • Are a resident of a state that either has no income tax or does not tax wages of non-residents

This exemption does NOT apply to professional athletes, professional entertainers, persons of prominence performing services on a per-event basis, real property contractors or laborers, or key employees of non-corporate employers.

Non-residents in pass-through entities — No return required if your only Utah-source income is from a partnership, S corporation, or trust (or other pass-through entity) AND that entity already withheld Utah income tax on your behalf.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40 “Exemptions” section)

Part-Year Residents

Part-year residents must file if they were a Utah resident for any part of 2025 and had income from any source during their period of Utah residency, OR had Utah-source income during their period of non-residency — provided they are required to file a federal return.

Use TC-40B (Non or Part-Year Resident Schedule) to apportion income between Utah and non-Utah periods.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Part-Year Resident Defined”)

What Income Is Taxable in Utah

Fully Taxable Income

Utah starts with Federal Adjusted Gross Income (FAGI) and makes Utah-specific additions and subtractions. The following types of income are generally taxable:

  • Wages, salaries, tips, and other compensation
  • Self-employment income
  • Business income
  • Interest and dividend income
  • Capital gains
  • Rental income
  • Retirement account distributions (401(k), traditional IRA)
  • Private pension income
  • Unemployment compensation

Social Security Benefits

Utah includes federally taxable Social Security benefits in taxable income. However, Utah provides a nonrefundable Social Security Benefits Tax Credit equal to 4.5% of the federally taxable Social Security amount. This credit phases out at $0.025 per dollar of state taxable income above the following 2025 thresholds:

Phase-out Thresholds
Filing Status Phase-out Threshold
Single $54,000
Head of Household $90,000
Married Filing Jointly $90,000
Married Filing Separately $45,000

Taxpayers with state taxable income below these thresholds may qualify for full or partial credit on their Social Security taxes. In 2025, the Legislature (SB 71) changed the phase-out calculation to use state taxable income instead of federal adjusted gross income.

Source: https://le.utah.gov/interim/2025/pdf/00002698.pdf and https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf (SB 71, §59-10-1042)

Military Retirement Pay

Utah does not exempt military retirement pay from income, but provides a nonrefundable Military Retirement Credit (TC-40A, code AJ) equal to 4.5% of the military retirement pay included in federal adjusted gross income. This credit may not be combined with the general Retirement Credit (code AO) for the same tax year.

Source: https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1043.html (UCA §59-10-1043)

Pension Income

Public pensions (state and local government): Taxable, but eligible for the Retirement Tax Credit (TC-40A, code AO) — a nonrefundable credit equal to 4.5% of the pension contributions included in income, subject to phase-out.

Federal government pensions: Taxable to the extent included in federal adjusted gross income.

Private pensions: Taxable at the full 4.5% rate; may qualify for the Retirement Tax Credit.

Railroad retirement pensions: Deductible only if taxed on the federal return. Taxpayers who receive railroad retirement pensions and report all or part as income on federal Form 1040 lines 5b and/or 6b may deduct that amount from Utah income.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40A Part 2 Subtraction Code Instructions)

Utah-Specific Subtractions from Income

The following items may be subtracted from federal adjusted gross income on TC-40A, Part 2:

  • State tax refund already included in federal income
  • Railroad retirement pensions (if federally taxable)
  • Military pay received while in active duty (if taxable at federal level under specific circumstances)
  • Income of a non-military spouse of an active duty servicemember stationed in Utah (MSRRA provisions)
  • Interest on U.S. government obligations

Source: https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S114_2025101420251206.pdf (UCA §59-10-114)

Standard Deduction and Exemptions

Standard Deduction (Tax Year 2025)

Utah does not have an independent state standard deduction. Utah uses the federal standard deduction as part of its Taxpayer Tax Credit calculation. The 2025 federal standard deduction amounts used for Utah purposes are:

Federal Standard Deduction
Federal standard deduction amounts applicable for Tax Year 2025:
Filing Status Federal Standard Deduction
Single $15,750
Married Filing Jointly $31,500
Married Filing Separately $15,750
Head of Household $23,625
Qualifying Surviving Spouse $31,500

Utah does allow taxpayers who itemize on their federal return to use federal itemized deductions for the Taxpayer Tax Credit calculation, minus any state income tax deduction included therein.

Source: https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf (§59-10-1018)

Personal Exemptions

Utah provides a personal exemption of $2,111 per qualifying dependent for Tax Year 2025 (increased from $2,046 in 2024). Qualifying dependents include:

  • Dependents age 16 and under
  • Other dependents who qualify for the federal child tax credit
  • Dependents must be claimed on the federal return
  • An additional exemption is allowed in the year of a qualifying dependent’s birth

These personal exemptions feed into the Taxpayer Tax Credit calculation (6% of personal exemptions + deductions), not as a direct deduction from income.

Source: https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf (§59-10-1018)

Utah Income Tax Credits

Utah offers the following key tax credits for individuals (Tax Year 2025):

1. Taxpayer Tax Credit (Universal Credit)

The foundational credit available to all Utah taxpayers. Equals 6% of the total of federal deductions (standard or itemized, minus state income tax) plus personal exemptions. Phases out at 1.3% of income above the base phase-out amount.

Credit code: Calculated automatically on TC-40, lines 16–20
Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (UCA §59-10-1018)

2. Utah Earned Income Tax Credit (EITC)

Utah offers a nonrefundable Earned Income Tax Credit equal to 15% of the federal EITC. Taxpayers who claim the federal EITC may also claim this Utah credit.

Eligibility: Same as federal EITC eligibility
Credit code: AE
Source: https://incometax.utah.gov and https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

3. Child Tax Credit

Utah offers a nonrefundable $1,000 child tax credit per qualifying child. As updated by HB 106 (2025), the qualifying age was expanded to children under age six (previously age one through three) as of the last day of the tax year.

Phase-out: Reduced by $0.10 per dollar of modified AGI over:

  • $27,000 (Married Filing Separately)
  • $43,000 (Single, Head of Household, Qualifying Surviving Spouse)
  • $54,000 (Married Filing Jointly)

Credit code: AT
Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (§59-10-1047, as amended by HB 106)

4. Social Security Benefits Credit

Nonrefundable credit equal to 4.5% of federally taxable Social Security benefits. Phases out at $0.025 per dollar of state taxable income above the 2025 thresholds ($54,000 single / $90,000 married jointly).

Credit code: AH
Source: https://le.utah.gov/interim/2025/pdf/00002698.pdf (§59-10-1042, as amended by SB 71)

5. Military Retirement Credit

Nonrefundable credit equal to 4.5% of military retirement pay included in federal adjusted gross income. Cannot be combined with the general Retirement Credit in the same year.

Credit code: AJ
Source: https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1043.html (UCA §59-10-1043)

6. Retirement Tax Credit

Nonrefundable credit equal to 4.5% of eligible retirement income (such as pension contributions previously taxed at the state level). Cannot be combined with the Military Retirement Credit in the same year.

Credit code: AO
Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40A Part 3 Instructions)

7. Credit for Income Tax Paid to Another State

Utah residents who pay income tax to another state on the same income taxed by Utah may claim a nonrefundable credit for the lesser of (a) the tax actually paid to the other state or (b) the Utah tax on that income.

Form required: TC-40S (Credit for Income Tax Paid to Another State)
Credit code: 17 (on TC-40A Part 4)
Note: Part-year residents rarely qualify for this credit.
Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40S Instructions)

8. At-Home Parent Credit

Nonrefundable credit for an at-home parent caring for a dependent child.

Credit code: 01
Source: https://incometax.utah.gov

9. Employer-Provided Childcare Credits (New for 2025)

HB 106 (2025) created two new credits for employers providing childcare:

  • Childcare construction credit: 20% of qualified construction expenditures for a qualified childcare facility (5-year carryforward available)
  • Childcare expenses credit: 10% of qualified childcare expenses (no carryforward; requires childcare construction credit in current or prior year)

Subject to recapture if employer fails to operate a qualified childcare facility for at least 5 consecutive years.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (HB 106, §59-10-1048)

Full list of Utah tax credits: https://incometax.utah.gov

Filing Deadlines

Regular Deadline

April 15, 2026 for Tax Year 2025 calendar-year returns

Automatic Extension

Utah provides an automatic six-month extension to file. No extension form is required. The extension deadline is October 15, 2026.

Important: This is an extension to FILE only — not an extension to PAY. Tax must be paid by April 15, 2026.

Prepayment Requirements to Avoid Extension Penalty

To avoid penalty on an extension, you must prepay by April 15, 2026 at least:

  • 90% of your 2025 Utah tax due (TC-40, line 27 plus line 30), OR
  • 100% of your 2024 tax liability (2024 TC-40, line 27 plus line 30), OR
  • 90% of your 2025 tax due if you had no 2024 Utah tax liability or this is your first year filing

Prepayment can be made through withholding, prior-year refund credits, or via TC-546 (Individual Income Tax Prepayment Coupon) at https://tap.utah.gov.

Estimated Tax Payments

Utah does not require quarterly estimated tax payments. Taxpayers may prepay at any time through https://tap.utah.gov or by mailing payment with Form TC-546.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“When to File and Pay” and “Extension of Time to File”)

Filing Options

Online Filing (E-File)

Utah strongly encourages electronic filing. Electronic returns are processed faster, catch errors, and allow taxpayers to delay payment until April 15, 2026 even if filing early.

Official Utah Online Portal: https://tap.utah.gov (Taxpayer Access Point)
Online tax information: https://incometax.utah.gov

Paper Filing

Paper forms are available for download. Paper returns require manual processing and take longer.

Primary Form: TC-40 (Utah Individual Income Tax Return 2025)
Download: https://tax.utah.gov/forms-pubs/ or https://files.tax.utah.gov/tax/forms/current/tc-40.pdf
Full packet (form + instructions): https://tax.utah.gov/forms/current/tc-40-fullpacket.pdf

Mailing addresses:

All returns with payment:

Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0266

All other returns (including refund returns):

Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0260

In-Person Assistance

Utah Tax Commission offices accept walk-in taxpayers:

  • Salt Lake City: 210 N 1950 W
  • Ogden: 2540 Washington Blvd., 6th Floor
  • Provo: 150 E Center St., #1300
  • Hurricane: 100 S 5300 W

Hours: Monday–Friday, 8:00 a.m.–5:00 p.m.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Cover page and “How to File”)

Tax Residency vs Domicile

Understanding the difference between residency and domicile is essential for determining Utah tax obligations.

Domicile Defined

Domicile is your permanent legal home — the place where you have voluntarily fixed your habitation with the intention of making it a permanent home, and to which you intend to return whenever absent.

Under Utah Administrative Code Rule R865-9I-2 and UCA §59-10-136:

  • You can have only ONE domicile at a time
  • Domicile continues until you both abandon the old domicile AND establish a new one with intent to remain
  • The mere intention to abandon a domicile is not sufficient — a new domicile must be positively established
  • A person’s actions carry more weight than verbal declarations of intent

Utah applies two tests for domicile (UCA §59-10-136):

Test 1 — Automatic domicile: You (or your spouse) are domiciled in Utah if:

  • You claimed a federal child tax credit (IRC §24) for a dependent enrolled in a Utah public K-12 school (not applicable to noncustodial parents not married to the custodial parent), OR
  • You are enrolled as a resident student in a Utah state institution of higher education, OR
  • You voted in Utah during the tax year and were neither registered to vote nor voted in another state

Test 2 — Preponderance of evidence: Even without meeting Test 1 conditions, you are domiciled in Utah if you have a permanent home in Utah to which you intend to return after absences, and you voluntarily settled in Utah with the intent of making it a permanent home. Evidence considered includes:

  • Utah driver’s license
  • Residential property tax exemption for a Utah primary residence (UCA §59-2)
  • Utah-enrolled dependents for whom you claim the federal child tax credit
  • Quality and nature of Utah living accommodations vs. other states
  • Location where you earn income
  • Location of spouse and dependents

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40 “Utah Domicile” section) and https://adminrules.utah.gov/public/rule/R865-9I-2/current (Utah Admin. Code R865-9I-2)

Residency Defined

“Resident” for Utah income tax purposes means (UCA §59-10-103):

  1. An individual who is domiciled in Utah for any period during the tax year (for the duration of that period), OR
  2. An individual who is not domiciled in Utah but maintains a permanent place of abode in Utah AND spends 183 or more days (in aggregate) in Utah during the tax year — fractions of a calendar day count as a whole day

The second category (183-day rule) means a person can be a Utah tax resident without changing domicile.

Source: https://tax.utah.gov/commission/ruling/97-016.htm (Advisory Opinion) and https://le.utah.gov/xcode/Title59/Chapter10/C59-10.html (UCA §59-10-103)

Non-Resident Defined

A non-resident is an individual who does not meet either of the above residency tests. Non-residents owe Utah tax only on income from Utah sources.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Nonresident Defined”)

Part-Year Resident Defined

A part-year resident is an individual who changes status during the tax year — either from resident to non-resident, or from non-resident to resident. (Utah Admin. Code R865-9I-2)

Part-year residents file Form TC-40 with Schedule TC-40B (Non or Part-Year Resident Schedule) to apportion income between Utah and non-Utah periods.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Part-Year Resident Defined”)

Critical Differences
Factor Domicile Statutory Residency (183 days)
Based on Intent + permanent home Physical presence + permanent abode
Number allowed One at a time Can be resident of multiple states simultaneously
Changes when Abandon old AND establish new with intent Spend fewer than 183 days or give up Utah abode
Tax impact Resident for full domicile period Resident for the tax year

Common Conflict Scenarios

Scenario 1: Snowbird with Utah winter property
Domicile in another state, owns Utah condo used 5 months/year.
Result: Likely NOT a Utah resident (under 183 days, no intent to make Utah permanent home — but facts and circumstances determine this).

Scenario 2: Out-of-state worker temporarily in Utah
Domicile in Texas, rents apartment in Utah for 8-month work assignment.
Result: May be a Utah statutory resident if in Utah 183+ days AND maintains a permanent place of abode. Would owe Utah tax on all income during the period.

Scenario 3: Spouse of Utah resident
If your spouse has Utah domicile under Test 1 (TC-40 instructions), you also have Utah domicile. If your spouse has Utah domicile under Test 2, you also have Utah domicile unless you can establish by a preponderance of evidence that during the tax year and the three prior years you did not maintain the qualifying domicile factors.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Utah Domicile section) and https://tax.utah.gov/commission/decision/96-0253.htm

Audit Documentation

State tax authorities may review residency determinations. Utah’s Tax Commission has historically been active in asserting domicile. Common documentation requested:

Primary residency evidence: driver’s license, voter registration, vehicle registration, professional licenses

Physical presence: day-count logs, travel records, credit card statements, cell phone records, toll records

Property and financial ties: property ownership, homestead exemption, utility bills, lease agreements, bank statements

Employment documentation: W-2 forms, employment contract, remote work agreements

Intent documentation: will/estate documents, prior tax returns, insurance policies

Common Utah audit triggers:

  • Claiming non-residency while maintaining a Utah driver’s license
  • Owning Utah property while filing as non-resident
  • Spouse or children remaining in Utah while taxpayer claims domicile elsewhere
  • Day count near the 183-day threshold
  • Filing federal return with a Utah address but only a part-year Utah return

Source: https://tax.utah.gov/commission/decision/96-0253.htm and https://tax.utah.gov/commission/decision/01-0896.htm

Special Considerations — Remote Workers & Multi-State Taxation

Living in Utah, Working for Out-of-State Employer

As a Utah resident (or domiciliary), you owe Utah income tax on all income, regardless of where your employer is located.

What this means:

  • Employer location does NOT determine Utah tax obligation
  • Income earned remotely for a California, New York, or any other state employer is fully taxable in Utah
  • Utah law requires proper Utah tax withholding for resident employees

Example: A Utah resident working remotely for a New York City company owes Utah income tax at 4.5% on that income.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Residency sections)

Working in Utah, Living in Another State

Non-residents who perform work physically in Utah owe Utah income tax on income earned from Utah sources. Utah does not apply a “convenience of the employer” rule — non-residents are taxed only on income from work physically performed in Utah.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Nonresident Defined” and TC-40B instructions)

⚠️ Interstate Tax Risk Indicator

Utah residents working for employers in certain states commonly encounter dual taxation complications:

States requiring careful planning for Utah residents:

  • New York — Applies convenience of employer rule; may tax Utah-resident remote workers
  • California — Aggressive residency audits for anyone with California income sources
  • Pennsylvania — 200+ local income tax jurisdictions for work performed there
  • Connecticut — Complex credit system
  • Massachusetts — Telecommuter rule history

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Income from Other States) and IRS Publication 505

Reciprocal Agreements

Utah has no reciprocal agreements with other states.

Utah residents who earn income in another state must:

  1. File a non-resident return in the other state
  2. Report all income on their Utah resident return
  3. Claim the Credit for Income Tax Paid to Another State (TC-40S, code 17 on TC-40A Part 4)

The credit equals the lesser of: (a) the actual tax paid to the other state, or (b) the Utah tax on that same income.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40S instructions) and https://tax.utah.gov/commission/ruling/96-074.htm

Multi-State Tax Filing

When earning income in multiple states:

  • File a Utah resident return (TC-40) reporting all income
  • File non-resident returns in other states where income was earned
  • Claim TC-40S credit on Utah return for taxes paid to other states
  • Use TC-40B if part-year resident

Forms required:

  • TC-40S — Credit for Income Tax Paid to Another State
  • TC-40B — Non or Part-Year Resident Schedule (if applicable)

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Military Personnel

Servicemembers Civil Relief Act (SCRA)

Active duty military members stationed in Utah due to military orders do not become Utah residents solely because of those orders. Under federal law (50 U.S.C. §4001), a service member’s state of legal residence remains unchanged by military assignment.

Nonresident Service Member: A service member whose state of legal residence is NOT Utah, even if stationed in Utah. Such members are NOT subject to Utah income tax on their active duty military pay.

Resident Service Member: A service member whose state of legal residence IS Utah, even if stationed outside of Utah. Such members owe Utah tax on all income, including military pay (subject to applicable credits).

Source: https://tax.utah.gov/forms-pubs/pub-57/ (Publication 57 — Military Personnel Instructions)

Military Spouses Residency Relief Act (MSRRA)

Under MSRRA (50 U.S.C. §4001(a)(2)), the income of a non-military spouse is exempt from Utah income tax if:

  • The spouse is in Utah solely to be with the active duty servicemember
  • The servicemember is in Utah under military orders
  • The spouse and servicemember maintain the same domicile in another state

How to claim the exemption:

  • Qualified non-military spouse should file a federal W-4 with employer, noting “Utah Only – Exempt military spouse” under box 4c
  • On TC-40: Enter “N” on the “Full-year Resident?” line next to the spouse’s name
  • Include all spouse income on TC-40A, Part 2, using subtraction code 88 (nonresident military spouse income)

Source: https://tax.utah.gov/forms-pubs/pub-57/ and https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Military section)

Active Duty Income Reporting (Nonresident Service Members)

Non-resident active duty military members who have other Utah-source income (e.g., a spouse’s income, rental property) must file TC-40B. Report non-Utah military wages on TC-40A, Part 2, using subtraction code 82 (nonresident active duty military pay).

Source: https://tax.utah.gov/forms-pubs/pub-57/

Military Retirement Pay

Utah does not exempt military retirement pay from income but provides a nonrefundable Military Retirement Credit equal to 4.5% of military retirement pay included in federal adjusted gross income (UCA §59-10-1043). This credit offsets the Utah tax on that amount for qualifying taxpayers.

  • “Military retirement pay” includes retirement pay and survivor benefits relating to service in the armed forces or reserve components (10 U.S.C. §10101)
  • Does NOT include Social Security income, 401(k)/IRA distributions, or income from other sources
  • Cannot be combined with the general Retirement Credit (code AO) in the same tax year
  • No carryforward allowed

Credit code: AJ
Source: https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1043.html (UCA §59-10-1043)

Retirees

Social Security Benefits

Utah taxes federally taxable Social Security benefits but provides a nonrefundable Social Security Benefits Tax Credit (credit code AH). For Tax Year 2025:

  • Credit equals 4.5% of the federally taxable Social Security amount
  • Phases out at $0.025 per dollar of Utah state taxable income above the threshold
  • Credit fully offsets Utah tax on Social Security for taxpayers below the thresholds
2025 Phase-out Thresholds (SB 71, expanded from 2024)
Filing Status Phase-out Threshold
Single $54,000
Head of Household $90,000
Married Filing Jointly $90,000
Married Filing Separately $45,000

Note: As of 2025, the calculation uses state taxable income (not federal AGI) per SB 71.

Source: https://le.utah.gov/interim/2025/pdf/00002698.pdf and https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf (§59-10-1042)

Pension Income

Private and public pensions: Included in Utah taxable income at the 4.5% flat rate. May be eligible for the Retirement Tax Credit (code AO) — 4.5% of qualifying pension contributions previously taxed.

Federal government pensions: Taxable to the extent included in federal adjusted gross income.

Railroad retirement pensions: Eligible for a Utah subtraction if included in federal taxable income. Claim on TC-40A, Part 2.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (TC-40A Part 2 and Part 3 instructions)

Retirement Account Distributions

Traditional 401(k) and Traditional IRA: Distributions are taxable at the 4.5% flat rate (included in FAGI and passed through to Utah taxable income).

Roth IRA: Qualified Roth distributions are not included in federal adjusted gross income and therefore not subject to Utah income tax.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Students

College students attending school in Utah do not automatically become Utah residents for tax purposes.

You remain a non-resident if:

  • You maintain legal residence (domicile) in another state
  • Your presence in Utah is temporary for educational purposes
  • You intend to return to your home state after completing your studies

You owe Utah tax only on Utah-source income:

  • Wages earned from working in Utah
  • Business income from Utah sources
  • Rental income from Utah property

Establishing Utah residency as a student: A student CAN become a Utah resident by taking affirmative steps to establish domicile:

  • Registering to vote in Utah
  • Enrolling as a resident student in a Utah state institution of higher education (which triggers Test 1 domicile under UCA §59-10-136)
  • Obtaining a Utah driver’s license
  • Taking other actions demonstrating intent to make Utah a permanent home

Caution: Enrolling as a resident student at a Utah university (for tuition purposes) is listed as a Test 1 domicile trigger — this can create an unintended Utah tax domicile for students from other states who seek resident tuition status.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Students” section) and https://le.utah.gov/xcode/Title59/Chapter10/59-10-S136_2023051020230510.html (UCA §59-10-136)

Part-Year Residents

If you moved TO or FROM Utah during 2025, you must file as a part-year resident using Form TC-40 with Schedule TC-40B.

Income allocation:

  • Report income earned while a Utah resident (Column A = Utah, Column B = Total)
  • Utah tax is calculated by multiplying total Utah-source income / total income by the total tax (TC-40B, line 39–41)
  • Moving expenses for moves INTO Utah may be included in Utah-source deductions on TC-40B

Moving TO Utah:

  • Determine Utah residency start date (the day you establish Utah domicile)
  • Report all income from that date forward as Utah-source on TC-40B
  • File non-resident return in your former state for pre-move income

Moving FROM Utah:

  • Determine Utah residency end date (the day you establish domicile in the new state)
  • Report all Utah-source income through that date
  • File non-resident or part-year return in new state for post-move income

Forms required:

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Part-Year Resident Defined” and TC-40B instructions)

Common Tax Filing Situations

Situation: “My employer is in California, so I don’t owe Utah tax.”

Utah law: Utah residents owe Utah income tax on all income regardless of employer location. Employer location does not determine Utah tax obligation. Remote work for an out-of-state employer is fully taxable in Utah.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Situation: “I was stationed in Utah by the military, so I have to pay Utah taxes.”

Federal and Utah law: Under SCRA (50 U.S.C. §4001), military members stationed in Utah due to orders do NOT become Utah residents. Their military pay is taxable only in their state of legal residence, not Utah.

Source: https://tax.utah.gov/forms-pubs/pub-57/

Situation: “I only spent 4 months in Utah, so I don’t owe any Utah tax.”

Utah law: Part-year residents owe Utah tax on income earned during their Utah residency period. Non-residents owe Utah tax on any Utah-source income (e.g., wages from Utah employers, Utah rental income) regardless of time spent in Utah — unless they qualify for the 20-day temporary worker exemption.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf

Situation: “I’m a student at a Utah university — I’m not a Utah resident.”

Utah law: Enrolling as a resident student at a Utah state institution of higher education is listed as a Test 1 domicile trigger under UCA §59-10-136. Students who have obtained Utah resident tuition status may inadvertently establish Utah domicile.

Source: https://le.utah.gov/xcode/Title59/Chapter10/59-10-S136_2023051020230510.html (UCA §59-10-136)

Forms & Publications

Primary Tax Return Forms

Resident and Part-Year Resident Return:

Non-Resident and Part-Year Resident Schedule:

Common Schedules and Supplemental Forms

Withholding Forms

  • Federal Form W-4 — Employee withholding certificate (Utah uses the federal W-4; write “Utah Only – Exempt” for qualified military spouse exemptions)
  • TC-941 — Utah Withholding Return (for employers)
  • TC-941R — Annual Withholding Reconciliation

Payment and Prepayment Forms

Exemption Certificates

  • Military spouse exemption: No separate Utah form — use federal Form W-4 with “Utah Only – Exempt military spouse” written under box 4c
  • Non-resident temporary worker exemption: No filing required if qualifying conditions are met

Key Publications

Where to Submit Paper Returns

With payment:

Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0266

Without payment (including refund returns):

Utah State Tax Commission
210 N 1950 W
Salt Lake City, UT 84134-0260

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Cover page) and https://tax.utah.gov/forms-pubs/

Local Income Taxes

Utah does not permit local income taxes. Only state-level income tax applies to Utah residents and non-residents with Utah-source income. There are no city, county, or municipal income taxes in Utah.

Source: Utah Constitution and Utah Code Title 59

Penalties and Interest

Interest on Unpaid Tax

Interest accrues on unpaid Utah tax from the original filing due date (April 15, 2026) until the tax is paid in full.

Current interest rate:

  • January 1, 2025 – December 31, 2026: 6% per year

Interest is calculated using this formula:

(Unpaid tax) × (interest rate) × (number of days) ÷ 365 = Interest Due

Note: Payments are applied first to penalties, then to interest, then to tax.

Source: https://tax.utah.gov/forms/pubs/pub-58.pdf (Publication 58, Interest Rate Schedule) and https://tax.utah.gov/billing/penalties-interest/

Late Filing and Late Payment Penalties

Utah imposes penalties as a percentage of unpaid tax based on the number of days late (UCA §59-1-401). The penalty schedule is progressive by days late.

  • Failure to file penalty: Percentage of unpaid tax, increasing with days late
  • Failure to pay penalty: Percentage of unpaid tax, increasing with days late
  • Second penalty: Applied if tax remains unpaid 90 days after the due date

For the complete penalty schedule by days late, see Publication 58: https://tax.utah.gov/forms/pubs/pub-58.pdf

Penalty and Interest Estimator: Available online at https://tap.utah.gov

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (Line 40 instructions) and https://tax.utah.gov/billing/penalties-interest/

Extension Underpayment Penalty

If you take the automatic six-month extension but do not meet the prepayment requirements (90% of current year tax OR 100% of prior year tax), an additional penalty applies: 2% of the unpaid tax per month of the extension period.

If the return is not filed by October 15, 2026, the extension is voided and regular failure-to-file penalties apply as if no extension was requested.

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Extension of Time to File”)

Safe Harbor — Avoiding Underpayment Penalty

Utah does not impose a separate estimated tax penalty for individuals who meet the extension prepayment requirements. No underpayment penalty applies if you prepay by April 15, 2026 at least:

  • 90% of your 2025 Utah tax liability, OR
  • 100% of your 2024 Utah tax liability

Source: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf (“Prepayment Requirements for Filing Extension”)

Information Verification Log

Information Verification Log
Information Type Source Last Verified
Tax rate (4.5%) https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf February 2026
Standard deduction amounts https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf February 2026
Personal exemption ($2,111) https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf February 2026
Taxpayer Tax Credit phase-out thresholds https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf February 2026
Filing requirements https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf February 2026
Extension rules https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf February 2026
Social Security credit thresholds https://le.utah.gov/interim/2025/pdf/00002698.pdf February 2026
Military retirement credit https://le.utah.gov/xcode/Title59/Chapter10/59-10-S1043.html February 2026
Statutory authority (UCA §59-10-104) https://le.utah.gov/xcode/Title59/Chapter10/C59-10.html February 2026
Forms and publications https://tax.utah.gov/forms-pubs/ February 2026

Where to Check for Updates

Current Tax Rate Information: https://incometax.utah.gov — Updated when rates change (most recently January 2025)

Forms Library (current year): https://tax.utah.gov/forms-pubs/ — Current TC-40, TC-40A, TC-40B, and all other forms

Forms Library (prior years): https://tax.utah.gov/forms-pubs/previousyears

Legislative Changes:

Administrative Guidance:

Taxpayer Notices and Announcements:

Email Updates: Register for notifications at: https://tax.utah.gov

Note: This page will be reviewed and updated in January 2027 for Tax Year 2026. For real-time updates, always consult the official Utah State Tax Commission website.

Official Utah Income Tax Resources

All information in this guide is compiled exclusively from official government sources.

Utah State Tax Commission

Utah Tax Code and Regulations

Contact Information

Taxpayer help line:
Phone: 801-297-2200
Toll-free: 1-800-662-4335 (outside Salt Lake area)
TDD: 801-297-2020
Hours: Monday–Friday, 8:00 a.m.–5:00 p.m.

Help from tax professionals: taxmaster@utah.gov

Taxpayer Advocate Service:
Phone: 801-297-7562 or 1-800-662-4335, ext. 7562
Email: taxpayeradvocate@utah.gov

ADA Accommodations:
Email: taxada@utah.gov
Phone: 801-297-3811

Physical offices:

  • Salt Lake City: 210 N 1950 W, Salt Lake City, UT 84134
  • Ogden: 2540 Washington Blvd., 6th Floor
  • Provo: 150 E Center St., #1300
  • Hurricane: 100 S 5300 W

Free Tax Assistance

VITA (Volunteer Income Tax Assistance):
Call 2-1-1 or 1-800-906-9887 to find the nearest VITA site

TCE (Tax Counseling for the Elderly):
Call 2-1-1 or 1-888-227-7669 (AARP)
See also: https://aarp.org

Earn It. Keep It. Save It. (Utah Tax Help):
Free tax preparation and DIY prep for low-income taxpayers: https://UtahTaxHelp.org

Tax Glossary

Adjusted Gross Income (AGI):
Total income minus specific deductions (IRA contributions, student loan interest, etc.). Utah starts with Federal AGI and makes Utah-specific adjustments.

Taxpayer Tax Credit:
Utah’s unique nonrefundable credit equal to 6% of total deductions and personal exemptions. Phases out at 1.3% of income above filing-status thresholds. Creates progressive effective rates despite the flat 4.5% rate.

Taxable Income (Utah):
Federal AGI plus Utah additions minus Utah subtractions, then the flat 4.5% rate is applied.

Resident:
An individual domiciled in Utah for any part of the tax year, OR who maintained a permanent place of abode in Utah AND spent 183 or more days in Utah during the year.

Non-Resident:
An individual who does not meet Utah’s residency tests. Owes Utah tax only on Utah-source income.

Part-Year Resident:
An individual who changed status during the tax year — moved to or from Utah.

Domicile:
Your permanent legal home — where you have voluntarily settled with the intention of making it your permanent residence and to which you intend to return when absent.

Flat Tax:
A single rate applied to all taxable income regardless of amount. Utah applies 4.5% to all taxable income.

Withholding:
Tax deducted from your paycheck by your employer and remitted to the Utah State Tax Commission on your behalf.

Credit for Tax Paid to Another State:
Utah’s mechanism for avoiding double taxation. Equals the lesser of (a) actual tax paid to another state on the same income, or (b) the Utah tax on that income. Claimed on TC-40S.

Tax Credit:
A dollar-for-dollar reduction in tax owed (e.g., a $500 credit reduces Utah tax by $500). Utah credits are generally nonrefundable — they can reduce tax to zero but do not generate a refund.

Standard Deduction:
Utah uses the federal standard deduction amount as an input to the Taxpayer Tax Credit calculation. Single: $15,750 / Married Filing Jointly: $31,500 for Tax Year 2025.

Personal Exemption:
Utah allows $2,111 per qualifying dependent for Tax Year 2025. Used in the Taxpayer Tax Credit calculation.

TC-40:
Utah’s primary individual income tax return form (equivalent to the federal Form 1040).

TC-40B:
Non or Part-Year Resident Schedule — used to apportion income between Utah and non-Utah sources.

TAP (Taxpayer Access Point):
Utah’s official online tax portal at https://tap.utah.gov for filing, paying, and managing Utah taxes.

Update History

February 2026 — Initial Publication

  • Published comprehensive Utah income tax guide for Tax Year 2025 (returns filed in 2026)
  • Verified: 4.5% flat rate (reduced from 4.55% per HB 106, 2025 General Session)
  • Verified: Personal exemption $2,111 per dependent (increased from $2,046)
  • Verified: Federal standard deduction amounts ($15,750 single / $31,500 MFJ)
  • Verified: Taxpayer Tax Credit phase-out thresholds for 2025
  • Verified: Social Security credit expanded phase-out thresholds per SB 71 ($54,000 single / $90,000 MFJ)
  • Verified: Military Retirement Credit (4.5% of military retirement pay, UCA §59-10-1043)
  • Verified: Interest rate 6% (January 1, 2025 – December 31, 2026)
  • Verified: Child Tax Credit expanded to children under age 6 per HB 106
  • Source documents: 2025 TC-40 Instructions (files.tax.utah.gov/tax/forms/current/tc-40inst.pdf), 2026 Webinar Presentation (files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf)

Verification Schedule:

  • Annual Update: January (new tax rates, deduction amounts, legislative changes)
  • Mid-Year Review: June (legislative changes, administrative guidance)
  • Continuous Monitoring: Emergency tax legislation, disaster relief provisions
  • Source Link Check: Quarterly (all .gov URLs verified functional)

Last comprehensive update: February 2026
Next scheduled review: January 2027 (for Tax Year 2026 updates)

Others

California
Oklahoma
Colorado
Oregon
South Dakota
Nevada
Louisiana
Wisconsin
South Carolina
Alaska
Kentucky
Iowa
Tennessee
Indiana
Alabama

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current