Total Range for 2025
| Base state sales tax rate | 4.70% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Local rate range | 0%-4% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Total rate range | 4.7%-8.7% | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Economic sales nexus threshold | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | |
| Transactions threshold | N/A | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
| Sales tax return filing due date | Last day of following month | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate | Base state sales tax rate |
The base state sales tax rate in Utah is 4.7%, but since the local rates range from 0-4% the total sales tax range is 4.7-8.7%.
How to calculate your sales tax rate
Use our online sales tax calculator to determine the combined state and local sales tax rate for each location where you have a physical or economic nexus. Just enter your state and ZIP code to get your sales tax rate.
Example of using the sales tax rate in a tax calculation:
Let’s say you’re selling a t-shirt in Salt Lake City, Utah. The base state sales tax rate is 4.85%.
- Check for local sales tax: Salt Lake City has an additional local sales tax rate of 1.75%.
- Calculate total sales tax: Add the state and local rates: 4.85% + 1.75% = 6.6%
- Apply tax to sales price: Assume the t-shirt costs $20. Multiply the sales price by the total sales tax rate: $20 x 6.6% = $1.32
Nexus: Why do you need to collect sales tax in Utah?
If you’re selling goods and services in Utah then sales tax might apply! To determine your obligation, you need to understand “nexus,” which ties businesses to states for tax purposes.
Two types of nexus exist:
- Physical Nexus: Having a physical presence, like an office, warehouse, or employees in Utah, triggers this type. If you do, you likely need to collect sales tax.
- Economic Nexus: This kicks in when your sales within Utah exceed a certain economic threshold. Even without a physical presence, surpassing this threshold requires collecting sales tax.
In Utah, there is also a transaction threshold of 200, which means that even if your sales aren’t over $100,000 if you’ve sold more than 200 items then you still need to pay sales tax.
Services
- Generally, services are not taxable in Utah unless they are specifically listed as taxable.
- Examples of taxable services include car washes, gym memberships, and repairs to tangible personal property.
Goods
- In Utah, sales tax applies to the sale of tangible personal property. This means most physical items you sell will be taxable.
- There are some exceptions for specific goods, such as groceries (taxed at a lower rate) and prescription drugs (not taxable).
Freight/Shipping
How shipping is taxed depends on whether you separately state the charge on your invoice.
- If you separately state the shipping charge, it’s generally not taxable.
- If shipping costs are included in the overall price of the good, they are typically taxable.
Clothing
- Clothing is taxable in Utah
Electronics
- Since electronics are considered tangible goods in Utah the sale of them is taxable
SaaS
- SaaS is generally considered taxable in Utah
Digital Products
- The sale of digital downloads is taxable in Utah
Software
- The taxability of software can be a bit tricky. Generally, pre-written software downloaded electronically is not taxable.
- However, custom software or software delivered on a physical medium (like a CD) might be taxable.
How to register for sales tax in Utah
There are two ways to register for a sales tax permit (also called a sales and use tax license) in Utah:
- Online: This is the faster and recommended method. You can register through the Utah State Tax Commission’s OneStop Business Registration System: https://tax.utah.gov/business
Here’s what you’ll need for online registration:
- Personal identification information: Social Security number (SSN), address, etc.
- Business identification information: Employer Identification Number (EIN), address, business entity type (sole proprietorship, LLC, etc.)
- Business details: Date you’ll start selling in Utah
- Estimated sales figures: Annual net sales and purchases subject to Utah sales and use tax
2. By Mail: You can use form TC-69, Utah State Business and Tax Registration. Find the downloadable form here: https://tax.utah.gov/forms-pubs
How to collect sales tax in Utah
- Collect the Tax at the Point of Sale:
- Add the appropriate sales tax (state + local) to the sales price of your taxable goods or services.
- Most point-of-sale systems can automatically calculate the tax for you.
- Keep Accurate Records:
- Maintain detailed records of all your sales, including the taxable amount and the sales tax collected.
- This will be crucial for filing your sales tax returns.
How to get a sales tax permit/license in Utah?
To get a sales tax permit (license) in Utah:
- Apply online for faster processing
- You’ll need your SSN, business info, and estimated sales figures.
Alternatively, mail form TC-69 (found on the same website).
There’s no fee, but you’ll need to complete a separate nexus questionnaire first.
When are Utah’s sales tax returns due?
Utah sales tax returns are due on the last day of the month following the reporting period.
For instance, if your reporting period is January, the sales tax return would be due on the last day of February.
Important to Note:
- If the due date falls on a weekend or holiday, the return and payment are generally due on the next business day.
- Utah requires filing a return even if you have no tax liability for a particular period.
Is anyone exempt from sales tax in Utah?
In Utah, there are no exemptions for people themselves, but there are exemptions for certain types of purchases. Here’s a breakdown:
- Exempt Goods: Certain goods are not subject to sales tax, including:
- Groceries (taxed at a lower rate)
- Prescription drugs and medical devices
- Seeds for planting
- Textbooks (under specific conditions)
- Certain agricultural products and machinery
- Tax-Exempt Organizations: Sales tax may not apply to purchases made by qualified non-profit organizations and government agencies for exempt activities. However, they typically need a valid sales tax exemption certificate issued by the Utah State Tax Commission.
