Overview of Utah Sales Tax
Some professional services are taxable in Utah. The state stipulates that “sales tax is applied to retail sales and leases of tangible personal property, products transferred electronically, and certain services.” While Utah’s sales tax generally applies to most transactions, certain items have special treatment when it comes to sales taxes.
Sales Tax Guide
Utah sales tax guide for SaaS businesses. Tennessee Court Rules Sales Tax Exemption for Manufacturing Does Not Require New Product. Everything business owners need to know about Utah sales tax. This guide simplifies compliance with Utah’s sales tax code by breaking down the process into four easy steps: Taxable Goods and Services, Register for Sales Tax, Collecting Sales Tax.
Check out the rest of this guide to determine who needs a sales tax license, what products and services are taxable, how to register for a permit, and reporting requirements.
Tax Rates and Obligations in Utah
Utah’s sales tax rate is 4.85 percent of retail goods and some services sold. If a consumer does not pay sales tax on taxable tangible personal property, the consumer must pay the use tax. Types of taxes – sales and use tax, businesses must charge the state tax rate on sales of tangible personal property and some services.
How much tax should I charge for services in Utah?
Utah has a 4.95% flat personal income tax rate. Supplemental income like commissions can be taxed up to 40%.
If you make $143,000 a year living in Utah you will be taxed $32,087. Your average tax rate is 17.52% and your marginal tax rate is 24%. Use our income tax calculator to estimate how much tax you might pay on your taxable income.
The Utah Use Tax taxes the use or consumption of tangible property bought in other jurisdictions with a lower sales tax rate and brought back into Utah.
Utah boasts one of the lower property tax rates in the nation, which is pretty sweet for your wallet. Repair charges for labor are subject to sales tax unless the personal property being repaired is exempt under §59-12-104. The determination of whether repair labor is exempt from sales tax is based on the personal property being repaired, not on whether the parts used in the repair are exempt.
Remember, while this provides general information, it is always advisable to consult a tax professional or visit the Utah State Tax Commission’s website for the most accurate and up-to-date information regarding Utah state income taxes.