What Is Utah’s Sales Tax Rate and What Is Taxable?
Utah's sales tax is a combined state and local rate that varies by location. Discover which goods and services are taxable and how unprepared food is taxed differently.
Sales tax is a tax on the sale of goods and services. In Utah, this tax is a combination of a statewide rate and various local taxes levied by counties, cities, and special districts. This structure means the total tax paid by a consumer can differ significantly from one location to another.
Utah’s Sales Tax Rate Components
The sales tax system in Utah is built on a statewide base rate of 4.7%. This rate, however, is only a starting point for calculating the final tax on a transaction. The total rate a consumer pays is a combined figure that includes several layers of local taxes, causing the final percentage to vary by address.
Counties and municipalities have the authority to levy their own local option sales taxes, which are added directly to the state’s base rate. Further complicating the total rate are special district taxes. These are imposed by designated areas for specific purposes, such as funding transportation projects, tourism initiatives, or cultural facilities. For instance, some areas may have a mass transit tax or a resort communities tax.
The most reliable way for businesses to determine the exact rate for any given location is to use the official lookup tool on the Utah State Tax Commission website.
Taxable Goods and Services
In Utah, the sales tax applies broadly to the sale of tangible personal property, which includes most physical goods. Common examples of taxable goods include furniture, electronics, motor vehicles, and clothing. The tax is calculated on the final sales price and must be collected by the seller at the time of purchase.
Beyond physical items, Utah also taxes a specific list of services. Taxable services include admissions to events like concerts or sporting events, as well as fees for hotel and motel stays. Telecommunication services, such as phone and internet access, are also subject to sales tax.
Key Sales Tax Exemptions
Utah law provides several specific exemptions from the standard sales tax. One of the exemptions for individuals is for prescription drugs. When a licensed medical practitioner prescribes a medication, its sale is not subject to sales tax, and this exemption also extends to certain types of medical equipment and supplies.
Unprepared food, often referred to as groceries, is not fully exempt but is taxed at a much lower statewide rate of 3%. This special rate applies to items like produce, meat, dairy, and canned goods that require preparation before being eaten.
It is important to distinguish this lower rate for groceries from the full tax rate applied to prepared foods. A pre-made sandwich purchased at a grocery store deli is considered prepared food and is taxed at the higher, standard combined rate for that location.
How to File and Pay Sales Tax
For businesses, the obligation to collect and remit sales tax begins with establishing nexus. Nexus is a connection or presence in the state that requires a business to register for a sales tax license. This can be created by having a physical location, employees, or inventory in Utah, or by exceeding certain economic thresholds for sales into the state.
Once a business determines it has nexus, it must obtain a Utah sales tax license from the State Tax Commission. The application is completed online and requires providing business information, including the business’s legal name, federal Employer Identification Number (EIN), and details about the owners or corporate officers.
After licensing, businesses must file sales tax returns and remit the tax they have collected. Filing is done electronically through the Utah Taxpayer Access Point (TAP).
The Tax Commission assigns a filing frequency—monthly, quarterly, or annually—based on the amount of sales tax the business is expected to collect. The due date for the return and payment is the last day of the month following the end of the reporting period.