Utah — Personal Income Tax

Utah residents and part-year residents who are required to file a federal income tax return must file a Utah return. Nonresidents and part-year residents with Utah-source income must also file a Utah return if they are required to file a federal return, unless their only Utah income is from a partnership, S corporation, or trust that passes through to their federal return. Individuals may also file to claim a refund of overpaid Utah income tax. A person is considered a Utah resident if they reside in the state for 183 or more days in a calendar year or if they are domiciled in Utah under the statutory presumption tests outlined in Utah Code § 59-10-136.

Source: Utah Tax Commission — Who Must File and Utah Code § 59-10-103

Utah imposes a flat personal income tax rate on the state taxable income of resident individuals, nonresidents, and part-year residents with Utah-source income. For tax years beginning on or after January 1, 2025, the flat tax rate is 4.5%. This rate was established by the 2024 General Session and is reflected in the current statutory language of Utah Code § 59-10-104, effective for the 2025 tax year.

As of June 16, 2026, the Utah Code § 59-10-104 prescribes a flat rate of 4.5% for tax years beginning on or after January 1, 2025. No additional statutory amendment establishing a different rate for 2026 or later is reflected in the publicly posted, current version of § 59-10-104. Practitioners should consult the latest version of the statute and any session laws for future changes beyond the codified effective dates.

The single flat rate applies to all filing statuses and income levels; Utah does not use brackets or a graduated rate structure for personal income tax.

| Tax Year | Flat Rate | |----------|-----------| | 2025 and later (as of 6/16/2026) | 4.5% |

Source: Utah Code § 59-10-104 (current official text as of June 16, 2026)

Utah defines state taxable income for resident individuals as federal adjusted gross income (as defined in Internal Revenue Code Section 62), after making the additions and subtractions required by Utah Code Section 59-10-114 and the adjustments required by Section 59-10-115. The state does not use federal taxable income as the starting point. This definition applies to the 4.5% flat tax rate.

Source: Utah Code § 59-10-103

Utah individual income tax returns are due on the same date as the corresponding federal income tax return. For calendar-year filers, this is April 15 (or the next business day if April 15 falls on a weekend or holiday). Fiscal-year filers must file by the 15th day of the fourth month following the close of their taxable year.

Utah provides an automatic six-month extension to file individual income tax returns; taxpayers do not need to file a separate form to obtain the extension. The extension is automatic regardless of how much tax has been paid by the original due date. However, to avoid a late payment penalty, taxpayers must pay at least 90% of the current year’s tax liability or 100% of the prior year’s liability by the original due date. Any tax not paid by the original due date is subject to interest regardless of the extension. The extension is only for filing the return; tax payments remain due by the original deadline.

Source: Utah Code § 59-10-516 Source: Utah State Tax Commission — Tax Relief & Extensions Source: Utah State Tax Commission — TC-546 Instructions

Direct answer: Yes, Utah requires an adjustment to the owner’s Utah taxable income when a pass-through entity (PTE) elects to pay state income tax at the entity level under Utah Code § 59-10-1403.2. For tax years beginning on or after January 1, 2026, an individual owner must generally add back to federal adjusted gross income (AGI) the amount of PTE-level Utah income tax paid on their behalf. Utah also requires a similar addition for substantially equivalent state entity-level taxes paid on the owner’s behalf to another state, with corresponding credit provisions for taxes paid to Utah or other states.

Why: Utah adopted a PTE tax regime (“SALT cap workaround”) effective for taxable years 2026 and after. Under Utah Code § 59-10-114(1)(i)-(j), individual owners must add to federal AGI any Utah PTE tax paid by the entity and reported on the owner’s federal return. A similar addition is required for substantially similar PTE-level income taxes paid to other states and used as a federal deduction. However, Utah Code § 59-10-1044, also effective tax year 2026, provides a nonrefundable credit against Utah personal income tax for PTE-level Utah tax paid at the entity level and reported as an addition to Utah income. This prevents double taxation of the same income.

Source support:

• Authority: Utah Code § 59-10-1403.2 (elective PTE entity-level tax, statements required)

Source: Utah Code § 59-10-1403.2

• Authority: Utah Code § 59-10-114(1)(i)-(j) (required addition for Utah and other-state PTE taxes deducted at federal level)

Source: Utah Code § 59-10-114

• Authority: Utah Code § 59-10-1044 (credit for Utah PTE tax added at owner level)

Source: Utah Code § 59-10-1044

• Supporting: Utah State Tax Commission Pass-through Entity FAQs (“SALT Cap Workaround”), instructions for TC-40A additions and owner credits

Source: USTC SALT FAQ

Caution / review status: Not yet human confirmed. Primary guidance is statutory and Agency FAQ as of July 6, 2026. Utah’s application may evolve as additional administrative materials and return instructions are released for the PTE regime.

Utah taxes nonresidents and part-year residents only on income derived from Utah sources. Understanding what constitutes Utah-source income is essential for practitioners advising clients who work remotely, move into or out of Utah, or have business activities spanning multiple states.

Statutory categories of Utah-source income

Utah Code § 59-10-117(1) defines state taxable income derived from Utah sources as income attributable to or resulting from:

• Ownership of Utah real or tangible personal property — Income from any interest in real property or tangible personal property located in Utah constitutes Utah-source income. This includes gross income from mining as defined in Internal Revenue Code Section 613(c) derived from Utah property or property rights (subsection (1)(a)).

• Carrying on business, trade, profession, or occupation in Utah — Income from conducting a business, trade, profession, or occupation in Utah is Utah-source income (subsection (1)(b)). A nonresident does not carry on a business in Utah solely by buying or selling property for the nonresident's own account, unless the nonresident is a dealer holding property primarily for sale to customers in the ordinary course of the dealer's trade or business (subsection (2)(e)).

• Certain prior additions and subtractions — Additions to adjusted gross income required by Utah Code § 59-10-114(1)(c), (d), or (h) are Utah-source income to the extent those items were previously subtracted from state taxable income. Similarly, subtractions under § 59-10-114(2)(c) for refunds are Utah-source to the extent the refund relates to a tax imposed by Utah (subsections (1)(c) and (1)(d)).

Compensation for personal services performed in Utah

Compensation for personal services is Utah-source income if the services are performed in Utah, subject to Utah Code § 59-10-117.5. Conversely, compensation for services performed outside Utah is not Utah-source income (subsection (2)(c)). This is a physical-presence sourcing rule: a nonresident who performs services entirely outside Utah—such as a remote worker physically located in another state—does not earn Utah-source compensation even if the employer is a Utah company or the work benefits a Utah business.

Nonresident active-duty military pay is specifically excluded from Utah-source income under § 59-10-114(2)(l), even when the service member is stationed in Utah under military orders.

Business income carried on partly in and partly outside Utah

When a trade, business, profession, or occupation is carried on partly within and partly outside Utah, items of income, gain, loss, or deduction derived from or connected with Utah sources are determined under the allocation and apportionment rules in the manner prescribed by the Utah Tax Commission (subsection (2)(f)). The Commission is authorized to adopt such rules as necessary to fairly apportion income between Utah and other jurisdictions.

Pass-through entity income

A nonresident partner, member, shareholder, or beneficiary's share of income, gain, loss, deduction, or credit from a pass-through entity (as defined in § 59-10-1402) derived from or connected with Utah sources is determined under Utah Code § 59-10-118 (subsection (2)(d)). Pass-through entities are required to withhold Utah income tax on Utah-source income for nonresident owners under § 59-10-1403.2.

Real estate investment trust (REIT) distributions to nonresidents

Dividends, interest, or distributive shares from a real estate investment trust (as defined in § 59-7-101) distributed to a nonresident investor—including any shareholder, beneficiary, or owner of a beneficial interest—are treated as income from intangible personal property and constitute Utah-source income only to the extent the nonresident investor is employing its beneficial interest in the trust in a trade, business, profession, or occupation carried on by the investor in Utah (subsection (2)(h)). For most passive REIT investors who are nonresidents, REIT distributions are not Utah-source income.

Allocation for part-year residents

Part-year residents must allocate their income between Utah-source and non-Utah-source for the period they were nonresidents, using Schedule TC-40B. During the period of Utah residency, all income is taxable in Utah regardless of where earned. During the period of nonresidency, only Utah-source income (as defined in § 59-10-117) is taxable.

Reporting

Nonresidents and part-year residents report Utah-source income on Schedule TC-40B, completing Column A (Utah income) and Column B (total income). The form instructions require entering in Column A all income earned or received from Utah sources while a nonresident, plus all income from all sources while a Utah resident. The state income tax percentage—Utah taxable income divided by total adjusted gross income (after Utah additions and subtractions)—is then applied to the tax computation.

Source: Utah Code § 59-10-117 Source: Utah Tax Commission — TC-40B Instructions Source: Utah Tax Commission — Who Must File

Utah provides a nonrefundable Taxpayer Tax Credit under Utah Code § 59-10-1018, intended to offset personal income tax liability for individuals and families.

Statutory calculation The credit is the sum of:

• 6% of the taxpayer’s federal standard deduction (if claimed) or 6% of the taxpayer’s Utah itemized deduction (federal itemized deduction minus state/local income tax paid), and
• 6% of the Utah personal exemption amount, which is set at $1,750 per dependent as a statutory baseline (with an additional $1,750 in the year of a dependent’s birth), but is indexed annually for inflation. The $1,750 figure is the 2020 base and will be higher after CPI adjustment for later years. Practitioners must consult the Utah State Tax Commission’s annual tables for the finalized exemption amount for the relevant tax year.

Phase-out thresholds The total Taxpayer Tax Credit phases out as Utah taxable income exceeds statutory thresholds, which as of statute are:

• $15,095 for single filers
• $22,643 for head of household
• $30,190 for joint filers

These thresholds are also statutory baselines from 2020 and are subject to annual CPI adjustment and rounding as described in § 59-10-1018(5). For each dollar above the relevant threshold, the credit is reduced by $0.013. The joint threshold is always twice the single threshold, statutorily. Only the statute and Commission’s annual adjusted tables control for later years; users must refer to the annually published Utah Tax Commission figures for the actual amounts in effect for any given year.

Summary Table—Statutory Baseline (2020) | Filing Status | Base Threshold (2020) | Credit Reduction | |-------------------|----------------------|-----------------| | Single | $15,095 | $0.013 per $1 | | Head of Household | $22,643 | $0.013 per $1 | | Joint | $30,190 | $0.013 per $1 |

All thresholds and exemption amounts are subject to annual adjustment for inflation; this table provides statutory baselines only.

Reporting and caveats The credit is claimed on the Utah TC-40 individual return. Practitioners must consult the current Utah State Tax Commission tables each year (often published in TC-40 instructions or Commission bulletins) for the actual applicable figures. Utah Code § 59-10-1018 replaces the former personal exemption and details all calculation and phase-out mechanics.

Source: Utah Code § 59-10-1018

Utah offers two mutually exclusive credits for retirees: one for taxable Social Security benefits and another for general retirement income (if born on or before December 31, 1952). Each credit phases out based on modified adjusted gross income (MAGI), and the State Tax Commission publishes the current year’s thresholds in its annual presentation materials (webinar slide decks), which are the controlling authority for the figures.

2026 phase-out thresholds as published by the Utah State Tax Commission:

1. Social Security Benefits Credit (Utah Code § 59-10-1042) This nonrefundable credit equals the state income tax rate multiplied by the taxable Social Security income included in Utah taxable income. The credit phases out at a rate of $0.25 for every dollar of MAGI above the following 2026 thresholds:

• $45,000 — married filing separately
• $54,000 — single
• $90,000 — married filing jointly or head of household

These thresholds and the calculation method are confirmed by the Utah State Tax Commission’s March 19, 2026 annual tax update webinar slides — the official, finalized agency publication for the 2026 filing year. The Tax Commission does not reliably publish these figures in the annual TC-40 or TC-40S instructions. The controlling authority is the Commission’s yearly public presentation packs ("2026 Individual Income Tax Changes").

Source: USTC 2026 Tax Webinar Slides

2. Retirement Income Tax Credit (Utah Code § 59-10-1019) Eligible taxpayers (born on or before December 31, 1952) may claim up to $450 per individual, with phase-out thresholds in 2026 as follows:

• $16,000 — married filing separately
• $25,000 — single
• $32,000 — married filing jointly, qualifying surviving spouse, or head of household

These are confirmed by the State Tax Commission’s March 19, 2026 annual tax update webinar slides, which cover both credits for the 2026 tax year. Earlier years may reference prior webinars for the relevant filing year.

Source: USTC 2026 Tax Webinar Slides

Where to find the authoritative thresholds for any given year: Practitioners should review the State Tax Commission’s annual tax webinar/presentation slide decks (posted on the Utah Tax Commission’s tax training webpage) early each calendar year for finalized, current-year credit phase-out and exemption figures. These are the Commission’s official, controlling statements of applicable law and thresholds for the credits, and may not be restated (or may be summarized without figures) in the TC-40 or TC-40S instructions.

Source: Utah State Tax Commission — Tax Training Presentations

Caution / review status: Not yet human confirmed.

Direct answer Utah does not maintain its own independent or more restrictive list of federally declared disaster areas or periods for state income tax relief; instead, Utah fully conforms to the IRS list of qualifying counties, disaster periods, and relief windows as recognized for federal individual income tax purposes. The Utah State Tax Commission expressly states that it follows IRS guidelines for disaster tax relief, and relies on IRS-issued declarations (including extensions, penalty relief, and counties covered) as its governing authority.

Where to find the authoritative, up-to-date list Practitioners seeking official, current information regarding which counties, periods, and disasters qualify for relief in Utah must refer to the IRS’s published list of disaster declarations and relief notices. The Utah State Tax Commission maintains a dedicated “Disaster Area Tax Relief” web page, but this does not contain a Utah-specific list; instead, it points taxpayers and practitioners directly to the IRS’s official disaster relief webpage and disaster notices by state. The IRS page is updated whenever new federal declarations are made and is the controlling authority for determining eligibility.

State-specific qualifiers Utah does not impose unique qualifiers, partial conformity, or added geographic restrictions on eligibility beyond those set by the IRS. If the IRS grants an extension or penalty relief to certain counties, Utah automatically extends the same relief to those counties for state income tax purposes.

Administrative process To claim disaster-related income tax relief in Utah, taxpayers must affirmatively notify the Utah State Tax Commission of their eligibility (e.g., check the box in Utah’s TAP system, write the disaster area in red on paper returns, or contact the Commission by email/letter if needed). But there is no divergence in the eligible counties or periods from the IRS list, as confirmed by the Utah State Tax Commission’s published authority.

Source: Utah State Tax Commission — Disaster Area Tax Relief

Not yet human confirmed.

Utah does not impose separate or independent income tax filing requirements for dependents or minors. Under Utah Code § 59-10-502, any individual—including a dependent or minor—is required to file a Utah personal income tax return only if that individual is required to file a federal income tax return for the same tax year. There are no Utah-specific filing thresholds, minimum income tests, or additional requirements for dependents or minors that differ from the federal rules.

This means, for example:

• If a dependent child does not have enough earned or unearned income to require a federal return under IRS guidelines for the year, that dependent is not required to file a Utah return.
• If a dependent child or minor meets the federal filing rule—whether because of unearned income above the “kiddie tax” threshold, earned income above the federal standard deduction, or for any other federal reason—that dependent or minor is required to file in Utah as well, absent any Utah residency or source-income exception.

Utah law simply incorporates the federal filing obligation by reference for all individuals, regardless of age or dependent status. There is no Utah statute or administrative rule setting a unique Utah threshold for children, students, or dependent taxpayers.

Source: Utah Code § 59-10-502

Not yet human confirmed.

Utah requires nonresidents and part-year residents to allocate wage income between Utah-source and non-Utah-source based on where the personal services are physically performed. There is no strict statutory formula (such as a mandatory days-based ratio) for general wage allocation, but Utah law and administrative rules make several key points:

1. Source-of-income principle (physical presence)

• Under Utah Code § 59-10-117, compensation for personal services is treated as Utah-source income if the services are performed in Utah, regardless of where the employer is located or where the benefit of the service is received.
• Utah Admin. Code R865-9I-14(C) states that an employer must withhold on the portion of total wages "properly allocable to Utah" for a nonresident conducting work both inside and outside the state. The employer's allocation method is subject to Tax Commission review for fairness.

2. Part-year residents: Resident vs. nonresident period

• Utah Admin. Code R865-9I-7(2)-(3) instructs that part-year residents must include in their Utah AGI all wages earned during Utah residency. For the nonresident portion, only Utah-source income—i.e., wages for services physically performed in Utah—must be reported.

3. Remote workers and travel: 20-day rule

• Utah Code § 59-10-117.5 provides a narrow exemption: a nonresident is not subject to Utah tax or withholding on wages for services performed in Utah if present in the state ≤ 20 days in a tax year, and additional conditions are met. If the threshold is exceeded or the conditions are not satisfied, all Utah-worked days' compensation becomes Utah-source. (The 20-day rule is effective for taxable years beginning on or after January 1, 2019, per session law.)

4. Practical reporting and TC-40B mechanics

• Nonresidents and part-year residents use Schedule TC-40B to allocate income. The official instructions direct that only income from services performed in Utah (or all wages earned while a Utah resident) are included in the Utah column. There is no DOR-mandated apportionment formula for wage earners, but a reasonable allocation based on workdays or specific period earnings is standard practice and subject to Commission scrutiny if challenged. As of June 2026, no explicit mandatory formula appears in any cited authority; practitioners should monitor for future regulatory changes.

Summary: Utah expects wage income for remote or multistate workers to be sourced according to where the work is physically performed—generally matching the workday or work-period principle. No explicit statutory days-based ratio is enforced by rule for all filers, but the "properly allocable" standard governs. Documentation (such as time records) should be maintained in case of inquiry.

Source: Utah Code § 59-10-117 Source: Utah Code § 59-10-117.5 Source: Utah Admin. Code R865-9I-14(C) Source: Utah Admin. Code R865-9I-7(2)-(3) Source: Utah State Tax Commission — TC-40B Instructions

For a fiscal-year (short-year) individual taxpayer whose taxable year spans January 1, 2025—the effective date of Utah’s flat personal income tax rate reduction to 4.50%—Utah requires use of its administrative annualization method under Admin. Code R865-9I-9. The taxpayer computes state taxable income and applies the 4.50% rate (as the rate “for that taxable year”), annualizes the tax, then apportions it to the short-year period. There is no dual-rate or pro-rata split between old and new rates.

Why Utah Admin. Code R865-9I-9 governs computing income tax for taxable periods of less than 12 months. It mandates annualizing both taxable income and the tax: multiply income by 12 ÷ months in period, compute tax on that amount (using the rate in effect for that "taxable year"), then divide the resulting tax by 12 and multiply by the period length in months. Since Utah Code § 59-10-104 (2025) sets the rate at 4.50% “for a taxable year,” that single rate applies to the entire annualized income—even if part of the income occurred before January 1, 2025.

Source support

• Authority source: Utah Admin. Code R865-9I-9 – process for computing tax on short taxable periods (annualization method).

Source: Utah Admin. Code R865-9I-9

• Authority source: Utah Code § 59-10-104 (2025) – establishes the flat 4.50% rate “for a taxable year,” effective January 1, 2025.

Source: Utah Code § 59-10-104

Caution / review status Not yet human confirmed.