How Much Are Taxes and Fees on a Car in Utah?

Navigating the financial obligations of vehicle ownership in Utah involves understanding various taxes and fees that extend beyond the initial purchase price. Prospective and current car owners encounter a range of costs, from one-time transactional taxes to recurring annual fees. Becoming familiar with these different components can help individuals anticipate the true cost of owning a vehicle within the state.

Sales Tax on Vehicle Purchases

Purchasing a vehicle in Utah incurs a one-time sales tax, which is calculated based on the vehicle’s purchase price. The statewide sales tax rate is 4.85% of the sales price, to which local sales taxes are added, varying by city and county. The combined rate can fluctuate significantly depending on where the vehicle is purchased or registered.

When a vehicle is traded in as part of a new purchase, sales tax is applied to the net purchase price. This means the value of the trade-in vehicle is subtracted from the new vehicle’s price before the sales tax is calculated, potentially reducing the total tax owed. This tax benefit applies whether buying from a dealership or a private party.

For vehicles purchased from a licensed dealership, the dealer is responsible for collecting the applicable sales tax and remitting it to the state. Conversely, in private party sales, the buyer is responsible for paying the sales tax directly to the Utah Division of Motor Vehicles (DMV) at the time of titling and registration. The sales tax calculation in private sales is based on the net purchase price shown on a bill of sale; if no bill of sale is provided, the DMV may base the tax on the vehicle’s fair market value.

Certain situations may qualify for sales tax exemptions, such as vehicles received as gifts. If a vehicle is gifted, and the bill of sale indicates “GIFT / $0” as the purchase price, it is not subject to sales tax. However, sales between immediate family members are not exempt from sales tax and are taxed based on the purchase price.

For leased vehicles, sales tax is handled differently than a direct purchase. Instead of a one-time payment on the full vehicle price, sales tax is applied to any down payment made and subsequently to each monthly lease payment. This approach means the tax is paid over the lease term, aligning with the period of vehicle use rather than full ownership.

Annual Vehicle Fees

Utah does not impose a traditional annual personal property tax on vehicles. Instead, the state levies a “uniform fee” in lieu of property tax, which is paid annually during vehicle registration renewal. The uniform fee is determined primarily by the vehicle’s age.

For most passenger vehicles, including cars, light trucks, and vans, the uniform age-based fee follows a tiered structure:
Vehicles less than three years old: $150.
Vehicles three to six years old: $110.
Vehicles six to nine years old: $80.
Vehicles nine to twelve years old: $50.
Vehicles twelve years or older: $10.

Beyond the uniform fee, annual vehicle registration also includes other fees that vary based on factors such as vehicle type, weight, and the county of registration. These can include standard registration fees and license plate fees. Additionally, some counties impose specific surcharges, such as an Air Pollution Control (APC) fee, which ranges from $2 to $3 in certain counties, and a local option transportation fee, which is $10 in participating counties.

These annual fees are paid to the Utah DMV when renewing a vehicle’s registration. Renewals can be completed online, through mail, or in person at a DMV office.

Other Vehicle-Related Costs

Beyond sales tax and annual registration, vehicle ownership in Utah involves a few other mandatory, yet less frequent, costs. One such cost is the title fee, which is a one-time flat fee paid when transferring vehicle ownership and obtaining a new title. The current title transfer fee in Utah is $6. This fee applies to both new vehicle purchases and changes in ownership for existing vehicles.

Another set of costs relates to vehicle inspections, specifically safety and emissions inspections. As of January 1, 2018, safety inspections are not required for most passenger vehicles for registration renewal. However, certain vehicles, such as salvage vehicles, commercial vehicles, school buses, and taxis, must still undergo annual safety inspections. These inspections are service fees paid to certified stations, ranging from $14 to $40, and are not taxes.

Emissions inspections are a separate requirement and are mandatory in specific counties to address air quality concerns. These counties include Salt Lake, Davis, Weber, Utah, and Cache. The frequency of emissions testing varies by county and vehicle model year, with requirements ranging from annual to biennial. The cost for an emissions inspection ranges from $20 to $30 and is paid directly to the inspection station. A passing emissions certificate is a prerequisite for annual registration renewal in these applicable areas.