Utah has a statewide sales tax rate of 4.85%. Counties and cities can levy additional local sales taxes up to 1.6%.
Taxable Goods and Services
Goods subject to sales tax include physical items like furniture and vehicles. Some services like car repairs are also taxable. Online streaming platform subscription fees are subject to Utah sales tax as they are considered a bundled transaction. Additionally, Utah requires remote sellers to collect sales tax.
Utah is a Streamlined Sales Tax state allowing online filing and payments. Sellers with a physical or economic presence in Utah must collect and remit sales tax.
Exemptions and Reduced Rates
- Prescription medicine and gasoline are exempt.
- Utah charges a 3% reduced sales tax rate on grocery purchases.
Tax Jurisdiction and Filing
Utah has origin-based sales tax, meaning in-state long distance transactions are taxed based on the seller’s address. This applies to state, county, and city taxes. Sales tax returns are due the last day of the month following the reporting period.
Summary of Rates
- State sales tax rate: 4.85%
- Additional local tax: 0.85% to 3.5%
- Potential total tax rate: Up to 8.35%
Understanding when, where, and how much sales tax is due in Utah requires looking at specific taxing jurisdictions.