Utah Income Tax Structure

Utah has a flat income tax rate of 4.65% for 2024. This single rate applies to all taxable income regardless of filing status or income level. Utah previously had a 4.95% flat tax rate, but reduced it to 4.65% effective January 1, 2024.

Utah Tax Credits

While Utah has a flat tax rate, it offers several credits that can reduce your tax liability:

• Utah Taxpayer Tax Credit: This nonrefundable credit is $777 for single filers and $1,554 for joint filers. The credit phases out by $0.013 for each dollar over $31,000 of adjusted gross income.
• Utah Child Tax Credit: Utah offers a state child tax credit that complements the federal child tax credit.
• Retirement Tax Credit: Utah offers a retirement tax credit for eligible seniors to offset taxes on retirement income.

Utah Deductions and Exemptions

For 2024, Utah generally conforms to federal standard deduction amounts:

• Single: $13,850
• Married filing jointly: $27,700
• Head of household: $20,800
• Married filing separately: $13,850

Federal Income Tax

Federal income tax is based on federal tax brackets, your filing status, deductions, and W-4 allowances. Pre-tax deductions like 401(k) or HSA contributions reduce your federal taxable income.

FICA Taxes

FICA taxes fund Social Security and Medicare.

• Social Security: 6.2% on income up to $168,600 for 2024.
• Medicare: 1.45% on all income, with an additional 0.9% on income above certain thresholds.

Other Utah Taxes

• Sales Tax: Utah has a state sales tax rate of 4.85%. Local jurisdictions can add their own rates, bringing the total sales tax to between 6.10% and 8.95% depending on location.
• Property Tax: Utah has relatively low property taxes with an average effective property tax rate of approximately 0.56% of a property's assessed value.
• Gasoline Tax: Utah imposes a tax of 31.9 cents per gallon on gasoline.

Disclaimer: This information is for general guidance for the 2024 tax year and is not tax advice. Consult a tax professional for personalized advice.