As an e-commerce seller, you will need to collect sales tax in Utah if you have:
(1) gross revenue of more than $100,000 or more than 200 separate transactions in previous or current calendar year (economic nexus), or
(2) physical presence in Utah (physical nexus).
Below, we will highlight some of the basic provisions of Utah sales tax law.
What is the tax rate range for Utah?
State: Utah’s general sales tax rate is 4.85%.
Local: Utah localities impose their own sales tax at rates ranging from 0% to 7.6%. See Sales & Use Tax Rates
Food and food ingredients: Utah has a uniform statewide rate of 3% on food and food ingredients. The rate includes a state rate of 1.75%, a local option rate of 1.0% and a county option rate of 0.25%.
Do you have physical or economic nexus in Utah?
Physical nexus. Certain business activities create physical nexus in Utah. If you have physical nexus, you are required to collect and remit sales tax on all sales that are shipped to Utah. Examples of business activities that can create physical nexus in Utah 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
Economic nexus. Remote sellers and marketplace facilitators that have gross revenue of more than $100,000 or more than 200 separate transactions in previous or current calendar year must collect and remit Utah sales and use tax on taxable sales. Additional information:
- A marketplace facilitator can have nexus on its own direct sales, on sales it facilitates, or both. Therefore, facilitators must determine 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.)
Non-Nexus Sellers, Out-of-State Sellers, and Marketplace Facilitators and Sellers
What are examples of sales of taxable items?
- Tangible personal property, unless an exemption applies
- Certain services
- Digital goods
- Food (reduced rate)
- Leases and rentals of tangible personal property
- Software as a Service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Prescription drugs
- Various other medical products
- Fuel cells
- Sales and Use Tax General Information
Are there any sales tax holidays?
Currently, Utah does not have any sales tax holidays.
Is Utah a member of the SST (Streamlined Sales Tax)?
Currently, Utah is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in Utah?
You can register online at:
Streamlined Sales Tax Registration System