Utah State Income Tax 2023 - 2024
Utahns have a common interest in a tax system that supports our state's needs and stays viable over the long term. Defining income and measuring it present challenges, however.
The state of Utah has a relatively moderate income tax rate. In addition to the standard sales and property tax, Utah also taxes Social Security benefits, one of just a few states to do so. Utah State Income Tax flat rate is 4.65%. Taxable income in Utah is calculated based on your federal adjusted gross income, with a few exceptions. Whether you’re a Utah resident or a business, there are several state taxes that impact your income. These include the individual and corporate income taxes, the sales tax, and property tax. There are also some special fees, such as impact fees on new development, which help cover the costs of providing public services such as water, roads, and infrastructure.
The state’s tax base starts with the federal definition of adjusted gross income, and additional deductions are added through a series of tax credits. This system makes the state’s statutory rate lower than it would be without the tax credits.
How to File Utah State Income Tax?
You must file a Utah state return if you meet one of the following criteria: A full-time resident: You lived in Utah for all or part of the year, including any time spent there on military duty. A part-time resident: You lived in the state for less than 183 days. A nonresident: You don’t live in the state but earned Utah-source income or won a lottery prize there.
The first step in filing a Utah State Income Tax return is to determine the taxpayer’s income. This can be done by using a personal computer and the free tax software provided by the Utah State Tax Commission. Taxpayers can also use an approved software provider to e-file their returns.
A person may choose to file their Utah taxes as an individual, head of household, married filing jointly, or qualifying widow(er) with a dependent child. They may also choose to itemize or take the standard deduction on their return. If they choose to itemize on their federal return, they must use the same method on their Utah return.
A person can also claim their Utah personal exemptions and the state’s unique nonrefundable credit for income taxes paid to another state. If eligible, they may also be able to deduct a portion of their military pay and the income of their nonmilitary spouse.
