The Tax Foundation

Tax Data

Utah

The Facts on Utah’s Tax Climate

Here are some basic facts on Utah’s tax system and how it compares to other states:

Tax Freedom Day Arrives on April 21 in Utah
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Utah taxpayers had to work until April 21 to pay their total tax bill, ranking it 17th highest in the nation. That's two days before national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states are; Idaho, April 20 (ranked 19th); Nevada, April 26 (ranked 11th); Arizona, April 20 (ranked 20th); New Mexico, April 12 (ranked 42nd); Colorado, April 23 (ranked 15th); and Wyoming, April 20 (ranked 21st).

Utah’s 2008 Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Utah's State/Local Tax Burden near Average in 2007
Utah's state and local tax burden ranks near the national average. Estimated at 10.7% of income, Utah’s state/local tax burden percentage ranks 27th highest nationally, below the national average of 11.0%. Taxpayers in Utah pay $3,452 per capita in state and local taxes, and per capita state income is $32,249.
Utah's State-Local Tax Burden, 1970-Present

Utah's 2008 Business Tax Climate Ranks 17th
Utah ranks 17th in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Idaho (31st), Nevada (3rd), Arizona (25th), New Mexico (23rd), Colorado (13th) and Wyoming (1st).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

Utah's Individual Income Tax System
Utah's personal income tax system consists of six brackets with top rate of 6.98% kicking in at an income level of $5,500. This top rate ranks the state 14th highest among states levying personal income taxes. Utah also offers taxpayers the option of paying a 5.35% flat tax. Utah's 2005 individual income tax collections were $774 per person, which ranked 24th highest nationally.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Utah's Corporate Income Tax System
Utah's corporate tax structure consists of a flat rate of 5% on all corporate income. Among states levying corporate income taxes, Utah's rate ranks 41st highest nationally. In 2006, state-level corporate tax collections (excluding local taxes) were $136.52 per capita, which ranked 29th highest nationally.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Utah Levies Sales Tax below the National Median; Gasoline Tax among the Highest in the Nation
Utah levies a 4.65% general sales or use tax on consumers, below the national median of 5.4%. State and local governments combined collect $1,205 per capita in general sales taxes, which ranks 28th highest nationally. Utah's gasoline tax stands at 24.5 cents per gallon, ranking 23rd highest nationally. Utah's cigarette tax stands at 69.5 cents per pack of twenty and ranks 33rd highest nationally. The sales tax was adopted in 1933, the gasoline tax in 1923 and the cigarette tax in 1923.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Utah Property Taxes among Nation's Lowest
Utah's local governments collected $1,668,988,000 in property taxes during fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. Utah is one of the 13 states that collect no state-level property taxes, meaning Utah's per capita property tax collections equaled $689 for all levels of government in FY2004, ranking it 39th nationally.
State property tax collections per capita by state

Federal Tax Burdens and Expenditures: Utah is a Beneficiary State
Utah taxpayers receive more federal funding per dollar of federal taxes paid than the average state. Per dollar of Federal tax collected in 2005, Utah citizens received approximately $1.07 in the way of federal spending. This ranks the state 29th highest nationally and represents a decline from 1995 when Utah received $1.08 per dollar of taxes in federal spending (ranked 22nd nationally). Neighboring states and the amount of federal spending received per dollar of federal taxes collected were: Idaho ($1.21), Nevada ($0.65), Arizona ($1.19), New Mexico ($2.03), Colorado ($0.81), and Wyoming ($1.11).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Tax Data from The Tax Foundation