Are Social Security Benefits Taxable in Utah?
While Utah includes Social Security in its taxable income, a state-specific credit can offset this liability for eligible retirees based on their income.
While Utah taxes Social Security benefits, the state provides a tax credit that can lessen or even negate this tax liability for many retirees. The state’s tax system is linked to federal tax rules, meaning that if your benefits are taxed at the federal level, they are also subject to Utah’s income tax. A specific state credit is available to eligible taxpayers to offset this cost.
Federal Taxation of Social Security Benefits
The federal government may tax a portion of your Social Security benefits depending on your “provisional income.” This figure is calculated by taking your modified adjusted gross income (MAGI), adding one-half of your Social Security benefits, and including any tax-exempt interest you may have.
If your provisional income is between $25,000 and $34,000 for a single filer, or between $32,000 and $44,000 for a couple filing jointly, up to 50% of your Social Security benefits may be taxable. For those with provisional income exceeding these upper thresholds, up to 85% of benefits can be subject to federal income tax.
Utah’s Approach to Taxing Social Security
Utah’s state income tax calculation begins with your federal adjusted gross income (AGI). Since the taxable portion of your Social Security benefits is included in your federal AGI, it automatically flows through to your state tax return as taxable income. Utah applies its flat income tax rate to this amount.
The Utah Social Security Tax Credit
Utah offers a nonrefundable tax credit to mitigate the tax on Social Security income. Eligibility for this credit is based on your modified adjusted gross income and filing status. For the 2025 tax year, married couples filing jointly and heads of household with a MAGI of $90,000 or less may be eligible for a credit. The threshold for single filers is $54,000, and for those married filing separately, it is $45,000.
The credit is designed to phase out as income increases above these thresholds. This means that taxpayers with higher incomes will see the credit amount reduced or eliminated entirely. You cannot claim this credit if you also claim the state’s general retirement income credit.
How to Claim the Utah Credit
To claim the Social Security benefits credit, taxpayers use a state-provided worksheet to determine the exact amount of the credit they are eligible to receive. This calculation is based on your income and the amount of taxable Social Security benefits reported on your federal return.
Once the credit amount is determined, it is entered on Form TC-40A, Income Tax Supplemental Schedule, using code AH. This form is then filed with your main state tax return, Form TC-40, to apply the credit against your total Utah tax liability.