2024 Guide to State Sales Tax in Utah

What is sales tax in Utah?

Utah has both state and local sales taxes so the sales and use tax rate in the State of Utah varies depending on the county or city a purchase is being made in.

Utah’s sales tax rate for 2024 is made up of two rates:

• A base state sales tax rate of 4.85%
• Local sales tax rates that range between 0% and 8.1%

However, there are some exceptions to the above sales tax rate in Utah. These include the Utah grocery tax rate and the restaurant tax in Utah, both explained in more detail below.

Utah’s localities impose their own sales tax rates. Here are some examples of the combined sales tax rate after adding in local Utah sales tax rates in different tax jurisdictions:

• Salt Lake City combined sales tax rate: 7.25%
• Alta combined sales tax rate: 8.85%

See Utah’s Sales Tax Rate page for more information about sales tax rates across the state.

What is the Utah food tax rate?

Utah’s food tax rate (also known as Utah’s grocery tax) is a uniform statewide sales tax rate of 3% on food and food ingredients. The rate includes:

• A Utah food tax rate of 1.75%
• A local food tax rate of 1.0%
• A county food tax rate of 0.25%

The Utah grocery tax rate doesn’t apply to prepared food even if sold in a grocery store.

For example, it covers bread and sliced meat but not a prepared deli sandwich.

Learn more about food and grocery tax in Utah, including more details about what qualifies and what doesn’t for the Utah grocery tax.

What is the restaurant tax in Utah?

Unfortunately, restaurants in Utah don’t qualify to charge the lower Utah grocery tax rate on their prepared food despite the fact that they’re also selling food.

The restaurant tax in Utah is the full combined state sales tax and local sales tax rates of the jurisdiction where the sale occurs with an additional 1% Utah restaurant tax added on all food and beverages. This also applies to bars and taverns.

If a restaurant also sells grocery food, the lower 3% Utah grocery tax applies to those items if the restaurant keeps them separate on the receipt. However, restaurants selling grocery items will still need to collect the 1% Utah restaurant tax on sales of grocery items making the full tax rate 4%.

Learn more about the restaurant tax in Utah.

What is Utah’s sales tax on clothing?

Utah’s sales tax on clothing is the same sales tax they charge on other items. That includes the 4.85% state sales tax rate in Utah and additional local sales taxes ranging between 0% and 8.1%.

While some states have sales tax exemptions on clothing, there are no exemptions for clothing on either local or state sales tax in Utah.

Need help figuring out Utah sales tax?

Do you have additional questions about state sales tax in Utah? Or maybe you feel overwhelmed keeping track of your Utah nexus status?

TaxCloud can help by:

• Tracking your economic nexus status
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Get in touch with our team to find out more!

What counts as taxable items in Utah?

Utah has a broad definition of taxable items with only a limited number of sales tax exempt items. All other items must be charged at the normal Utah state sales tax rate and local sales tax rate.

Here are a few examples of taxable items in Utah:

• Tangible personal property, unless an exemption applies
• Clothing
• Certain services
• Digital goods
• Food (reduced rate)
• Leases and rentals of tangible personal property
• Software as a Service (SaaS)

What are non-taxable items or sales tax exemptions in Utah?

Utah has a limited number of sales tax exemptions. Here’s a list of some of the exemptions on state sales tax in Utah:

• Prescription drugs
• Sales or rentals of medical equipment
• Sales or rentals of mobility or prosthetic devices
• Unassisted car washes, dry cleaning, or laundry services
• Newspapers
• Textbooks
• Database access
• Some services

There are also certain types of organizations that receive exemption certificates from Utah like nonprofits and religious organizations. For more information about things exempt from sales tax in Utah, see pages 11-15 in this Utah sales tax guide.

When do I need to collect sales tax in Utah?

As an e-commerce seller, you will need to collect sales tax in Utah if your business has achieved Utah nexus. You can achieve nexus in Utah in two ways: Physical nexus or economic nexus.

Physical nexus

This is when you have some kind of physical presence in Utah (see details below around what constitutes a ‘physical presence’ in Utah).

Economic nexus

• You have gross revenue of more than $100,000 or
• More than 200 separate transactions in the previous or current calendar year

With economic nexus, you can achieve Utah nexus without ever stepping into the state. All that matters is the volume and amount of your Utah sales.

Below, we’ll highlight some of the basic provisions of nexus in Utah and sales tax law.

What is the physical Utah nexus threshold?

Certain business activities create physical nexus in Utah. If you have physical nexus in Utah, you are required to collect and remit sales tax on all sales that are shipped to Utah.

Examples of business activities that can create Utah nexus include:

• Having or utilizing an office, a distribution house, a sales house, a warehouse, a service enterprise; or a place of business in Utah.
• Maintaining a stock of goods in Utah.
• Regularly engaging in the delivery of property in Utah other than by common carrier or United States mail.
• Regularly leasing or servicing property located within Utah.

What is the economic nexus threshold in Utah?

Remote sellers and marketplace facilitators can achieve sales tax nexus in Utah if they have gross revenue of more than $100,000 or more than 200 separate transactions in the previous or current calendar year.

These businesses must collect and remit Utah sales and use tax on taxable sales. Not doing so will create tax liability.

How does Utah nexus work with marketplaces?

Utah nexus becomes a bit more complicated with marketplace sellers and facilitators. Here are a few things to be aware of when it comes to economic Utah nexus if you use or are a marketplace:

• A marketplace facilitator can have Utah nexus on its own direct sales, on sales it facilitates, or both. Therefore, facilitators must determine Utah nexus separately for their direct sales and their facilitated sales.
• Marketplace sellers do not need to have a Utah sales tax license for facilitated sales unless they have Utah nexus. A marketplace seller with a Utah sales tax license must file sales tax returns but does not report sales made through a marketplace. Marketplace sellers are not liable for taxes a facilitator is required to collect.
• Sales you make through a marketplace are not included in calculating your own threshold.
  Once you exceed the threshold, you must register and begin collecting tax immediately. Marketplace facilitators have a grace period of at least 60 days, but it is not clear if the Tax Commission would apply the same rule to other remote sellers.

For more information visit the Non-Nexus Sellers, Out-of-State Sellers, and Marketplace Facilitators and Sellers pages on the Utah State Tax Commission website.

Are there sales tax holidays in Utah?

As of 2024, Utah does not have any sales tax holidays. That means the Utah state sales tax rate and local sales tax rates apply at all times.

Is Utah a member of the SST (Streamlined Sales Tax)?

Currently, Utah is a full member of the Streamlined Sales Tax Governing Board (SSTGB). That means you can register and pay for sales tax via the Streamlined Sales Tax site.

How do I register for a sales tax permit in Utah?

Once you meet the nexus requirements in Utah you must register to start collecting Utah sales tax with the Utah Tax Commission immediately to maintain sales tax compliance. See this page on registering for a Utah sales tax permit. There are a few different options for registering.

• Taxpayer Access Point (TAP): Choose the option ‘Apply for tax account(s) – TC-69’ and follow the instructions given. For more information, visit the TAP general information page.
• OneStop Business Registration (OSBR): Use this as a one-stop site register for a Utah Tax Commission account and also to do things like register your business with the Department of Commerce, get certain city business licenses, and more.
• TC-69, Utah State Business and Tax Registration Form: This form can be mailed, faxed, or dropped off at one of Utah’s State Tax Commission offices.
• Streamlined Sales Tax Registration System (SSTRS): Since Utah is an SST state, you also have the option to register via the SSTRS site. The SSTRS is an easy way for businesses to register for sales and use tax accounts in all Streamlined States. Once you register through the SSTRS, the registration information is sent directly to the states you select and those states will then issue your business a sales tax account for collecting and remitting sales tax.