If you’re self-employed in Utah, here’s what you can expect your taxes to look like.
What’s the Utah income tax rate?
Utah’s income tax rate dropped to 4.85% starting with tax year 2022. It had been at 4.95% since 2018 and was 5% before that.
The Utah income tax is a flat-rate tax. That means you pay the same tax rate on all of your income. There are no tax brackets for Utah income taxes.
Utah bases your taxes on your federal adjusted gross income with a few state adjustments.
Does Utah have a self-employment tax?
The self-employment tax is a federal tax. There is no additional self-employment tax that Utah residents have to pay.
Does Utah have a tax on corporations and LLCs?
For S-corporations and most LLCs, you only have to pay your personal income tax rate.
Corporations and LLCs taxed as C-corporations usually have to pay a business income tax at the same tax rate as the personal income tax (now 4.85%). There is a $100 minimum even if your corporation isn’t actively doing business.
The Utah State Tax Commission has a detailed guide on corporate taxes.
Does Utah tax retirement income?
Utah generally taxes all retirement income the same as any other income. This includes taxing Social Security, pensions, and military retirement benefits.
Utah does offer seniors a nonrefundable tax credit that offsets some of the state income tax on Social Security and military pensions.
Utah Estimated Taxes
Utah doesn’t require quarterly estimated tax payments for personal income taxes. Don’t forget you may need to make quarterly payments to the IRS.
If you want to make an early payment for budgeting, you can do so using Utah’s Taxpayer Access Point system. My recommendation is to open up a separate savings account, set aside 5% for taxes, and pay when you file so you can collect a few bucks in interest.
Don’t forget that if you request an extension to file, you still have to pay by the original deadline.