What Is Utah’s Current Income Tax Rate?

Utah’s income tax system is a state-level taxation imposed on an individual’s earnings. This taxation serves to generate revenue that funds various public services and programs within the state.

The Current Utah Income Tax Rate

Utah utilizes a flat tax rate system for individual income tax. For the 2024 tax year, which covers taxes due in 2025, Utah’s individual income tax rate is 4.55%. This consistent rate simplifies the tax filing process compared to states with progressive tax brackets.

Understanding Taxable Income

Taxable income in Utah begins with your federal adjusted gross income (FAGI). This includes income sources like wages, salaries, business income, interest earned, dividends received, and capital gains. Most retirement and pension income received while a Utah resident is also subject to this flat tax rate. Social Security benefits are generally taxable in Utah, although qualifying taxpayers may be eligible for a credit to offset some of this tax liability.

Calculating Your Utah Income Tax

The calculation of your Utah income tax begins with your federal adjusted gross income (FAGI). This figure is multiplied directly by the 4.55% rate to determine your tax. This process applies whether you are a resident or a nonresident earning income from Utah sources.

Common Tax Adjustments

Various deductions and credits can reduce an individual’s Utah income tax liability. Utah allows a personal exemption for each dependent claimed on your federal tax return. Taxpayers can also benefit from a credit based on their federal standard or itemized deductions.

Utah offers numerous tax credits that can lower your effective tax rate. These include a child tax credit, an earned income tax credit (EITC) which is 20% of the federal EITC, and credits for contributions to the my529 education savings plan. Other credits may apply to specific situations, such as those for military retirement income or certain healthcare-related services. These adjustments play an important role in determining the actual tax burden.

Accessing Official Resources

To obtain the most accurate and current information regarding Utah income tax rates and regulations, it is important to consult official sources. The Utah State Tax Commission’s official website is the primary resource for taxpayers. This site provides detailed guidance, forms, publications, and information on filing and paying taxes. Tax laws are subject to change, so regularly checking the Utah State Tax Commission’s website is recommended for the most up-to-date information.