UT
Utah Small Business Tax Guide
Utah sales, use, income and franchise tax as the State Tax Commission's own pages state them, each labeled with the date it was retrieved. Educational only, not tax advice.
Disclaimer: This page is educational content only. Tax laws change, and your situation may differ. It is not legal, tax, or financial advice. Consult a qualified professional licensed in Utah before making filing or planning decisions.
Tax landscape for small businesses
The Utah State Tax Commission's Publication 25 covers sales and use tax. Its Chart 2 lists the "State Sales and Use" rate as "4.85%" (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026), and the publication says: "The taxes listed in Chart 2 are included in the combined sales tax rate and are filed on the sales tax return (TC-62S or TC-62M)." Chart 2 also lists a "Local Option" for "County, city or town" at "1.00%" and a "County Option" for "County" at "0.25%".
Worked example, with sample figures: a Utah repair business invoices $1,200.00 of taxable repair labor. At the state rate of 4.85% (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026), the state part of the tax is $1,200.00 × 4.85% = $58.20. Chart 2's local taxes are part of the combined rate, so the total tax on this invoice is more than the state part; check the combined rate for your location before you invoice. Use your own figures; these are only an illustration.
This guide doesn't cover the corporate income tax percentage, a 2026 income tax rate, estimated-payment rules or any license fee, because the pages quoted here don't state them. For those, go to the Utah State Tax Commission or ask a tax professional.
Tax overview
Each row lists a tax area and its notes. Confirm current figures with your state's tax agency or the IRS.
| Tax type | Rate or basis | Notes |
|---|---|---|
| State sales and use tax | "4.85%" | Publication 25, Chart 2 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026): the "State Sales and Use" row shows "4.85%". The publication adds: "The taxes listed in Chart 2 are included in the combined sales tax rate and are filed on the sales tax return (TC-62S or TC-62M)." |
| Local and county options | Varies by location (see notes) | Publication 25, Chart 2 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) lists a "Local Option" for "County, city or town" at "1.00%" and a "County Option" for "County" at "0.25%". It also says: "Tax rates and jurisdictional boundaries can change quarterly." |
| Grocery food | "3 percent" | Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026): "Sales of grocery food. Taxed statewide at the rate of 3 percent." |
| Individual income tax (page headed 2025) | "4.5% or .045" | The income tax rates page (Utah, State Tax Commission page headed "2025 Utah Income Tax", as retrieved on October 31, 2026) says: "Utah has a single tax rate for all income levels, as follows:" and its table row starting "January 1, 2025" shows "4.5% or .045". Check the page for the year you're filing. |
| Corporate franchise tax (C corporations) | Minimum tax (see notes) | The C Corporation Tax page (Utah, State Tax Commission C Corporation Tax page, as retrieved on October 31, 2026) says: "Every corporation that files form TC-20 must pay a minimum tax (privilege tax) of $100, regardless of whether or not the corporation exercises its right to do business." That page doesn't state the percentage rate; see the TC-20 instructions for the year you're filing. |
Filing requirements
This list isn't a complete checklist for your business.
Apply for a sales tax account
The sales tax page (Utah, State Tax Commission page at tax.utah.gov/sales, as retrieved on October 31, 2026) says: "You can apply for this tax account on our Taxpayer Access Point". It adds: "New businesses estimate the amount of sales and use tax liability when applying for a license and are assigned a filing status." Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "Sales tax licenses are not transferable."
Filing frequency
Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026): "If your sales tax liability is less than $50,000 per year, you may file quarterly." and "If your sales tax liability is $50,000 or more, you must file monthly." It adds: "The Tax Commission will set your filing frequency and notify you if it changes."
Due dates
Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026): "Returns are due the last day of the month following each filing period."
Paying by EFT
Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026): "If your annual sales tax liability is $96,000 or more, you must pay by Electronic Funds Transfer (EFT)."
C corporation franchise return
The C Corporation Tax page (Utah, State Tax Commission C Corporation Tax page, as retrieved on October 31, 2026) says: "Every C corporation incorporated in Utah (domestic), qualified in Utah (foreign), or doing business in Utah, whether qualified or not, must file a corporate franchise tax return." It adds: "C corporation returns are filed on form TC-20."
Deductions and write-offs
Confirm with your state how it treats each item.
- Seller discount: Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "Monthly sales tax filers may take a seller discount equal to 1.31 percent of the combined sales tax."
- Bad debts: Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "To find the amount of the adjustment you may claim on your Sales and Use Tax Return, divide the net write-off (W) by one (1) plus the local combined sales tax rate (R) at the time of sale."
- Items bought for resale: Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) lists as exempt "Products purchased for resale in the regular course of business, either in their original forms or as ingredients or components of a manufactured or compounded product."
Practical tips
- Check whether your services are taxable. Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "Sales and leases of tangible personal property, products transferred electronically, and certain services are taxable to the final consumer." Its list includes "Labor to repair, renovate and clean tangible personal property and products transferred electronically."
- File and pay on time. Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "The penalty for failure to file a tax-due return by the due date is the greater of $20 or up to 10 percent of the unpaid tax, based on the date the return is filed." It adds: "Interest is assessed from the original due date until the tax liability is paid in full."
- Recheck the rate each quarter. Publication 25 (Utah, State Tax Commission Publication 25, as retrieved on October 31, 2026) says: "Tax rates and jurisdictional boundaries can change quarterly."
Frequently asked questions
Explore More State Tax Guides
Start Invoicing With Billed
Create invoices, track payments and keep your clients' details in one place with Billed.
At a glance
| Topic | Utah State Tax Commission page | Date shown |
|---|---|---|
| State rate, local options, filing frequency, due dates, penalties, adjustments | Publication 25 (tax.utah.gov/forms-pubs/pub-25/) | None shown; as retrieved on October 31, 2026 |
| Applying for a sales tax account | Sales tax page (tax.utah.gov/sales) | None shown; as retrieved on October 31, 2026 |
| Individual income tax rate | "2025 Utah Income Tax" rates page (incometax.utah.gov) | As retrieved on October 31, 2026; the page is headed 2025 |
| C corporation franchise return and minimum tax | C Corporation Tax page (tax.utah.gov) | None shown; as retrieved on October 31, 2026 |
When this isn't for you
This guide covers Utah sales and use tax, the individual income tax rate on the page headed 2025 and the C corporation minimum tax as the State Tax Commission's pages state them. It leaves out the corporate income tax percentage, withholding, estimated payments, transient room and other special taxes. For those, and for help with your own returns, go to the Utah State Tax Commission or ask a tax professional.