This blog was last updated on June 30, 2026
Utah Sales Tax Rate (2026)
Utah imposes a statewide sales and use tax rate of 4.85%. The state does allow local jurisdictions to levy additional sales taxes, meaning total Utah sales tax rates vary depending on the location of the sale.
What’s Taxable in Utah?
Utah sales and use tax applies to the sale of tangible personal property and certain enumerated services. Sellers of taxable goods and/or services are required to collect and remit sales tax to the state.
Under Utah sales tax rules, most sales of tangible personal property are taxable unless a specific exemption applies. Certain digital products and services are also subject to Utah state sales tax.
Examples of taxable items services include:
- Clothing and footwear
- Prewritten (canned) computer software, whether delivered on physical media or downloaded electronically
- Software as a Service (SaaS)
- Digital goods (eBooks, digital audio works, digital audio-visual works)
- Telecommunications services originating and terminating within Utah
- Utilities (gas, electricity, heat, and other fuels for residential or commercial use)
- Repairs and labor to tangible personal property
- Certain installation and maintenance services associated with taxable goods
- Prepared food sold for immediate consumption
- Short-term accommodations (lodging)
Sales Tax Nexus in Utah
A seller is liable to collect and remit Utah sales tax if they meet the state’s nexus requirements. Nexus can be established through either physical or economic presence.
Utah: Physical Nexus
Physical presence is created by having a business location, office, warehouse, vehicle, employee, or other representative operating in the state of Utah.
Utah: Economic Nexus
Utah enforces economic nexus for remote sellers. If your business has over $100,000 in gross sales in Utah during the current or previous calendar year, you may be required to register for a Utah sales tax license and begin collecting Utah state sales tax.
Note: Utah removed its 200-transaction threshold effective July 1, 2025. Only the $100,000 revenue threshold now applies.
Learn more about out-of-state seller requirements from the Utah State Tax Commission.
Utah Sales Tax Exemptions
Certain sales in Utah are considered generally exempt from the sales and use tax requirements.
Exempt Products and Services
The following products and services are generally exempt from Utah sales tax:
- Prescription drugs and qualifying medical devices
- Agricultural supplies and equipment used in farming and production
- Manufacturing machinery and equipment used directly in production
- Custom software (regardless of delivery method)
- Sales for resale (items purchased solely to be resold to a final consumer)
- Food and food ingredients sold for home consumption (taxed at a reduced rate of 3%, not fully exempt)
- Purchases made with SNAP benefits
Entity- or Use-Based Exemptions
Additionally, Utah exempts sales to certain entities from the sales/use tax, including the following:
- Federal, Utah state, and local government entities (using Form TC-721G)
- Qualifying religious and charitable organizations with 501(c)(3) status (using Form TC-73 or TC-721RC)
- Public schools and educational institutions
- Native American tribes
- Retailers purchasing goods for resale (wholesale)
- Manufacturers purchasing materials used directly in production
- Industrial processors
How to Claim Sales Tax Exemption in Utah
To claim an exemption, an entity must provide an exemption certificate with the sale. The most commonly used Utah sales tax forms for claiming exemptions include Form TC-721 and other qualifying exemption certificates accepted by the Utah State Tax Commission.
Additional guidance on acceptable exemption formats can be found in Publication 25.
Utah Filing and Remittance Requirements
Utah offers multiple methods for filing and remitting sales and use tax:
- E-filing through TAP
- Simplified Electronic Return (SER) for SST participants and their affiliates
As of December 31, 2020, all sales and use taxes must be filed electronically. Businesses with $96,001 or more in previous year annual liability are required to pay by Electronic Funds Transfer on a monthly basis. More information available here.
Frequently Asked Questions
Is Utah a part of the Streamlined Sales Tax (SST) initiative?
Yes, Utah is part of the Streamlined Sales Tax (SST) initiative, a multi-state agreement designed to simplify and standardize sales tax rules. More information concerning SST may be found here.
Does Utah have sales tax holidays?
No, Utah does not currently offer sales tax holidays
Are there any special point of sale fees in Utah?
Utah imposes both a tire fee and E911 fee at the point of sale.
Does Utah apply sales tax to shipping charges?
Generally, shipping charges in Utah are not taxable if they are separately stated on the invoice. However, if shipping costs are included in the total sales price of a taxable product, they become part of the taxable amount and are subject to sales tax. Properly itemizing shipping on invoices is important to ensure correct tax treatment.
For sourcing sales tax, is Utah origin or destination based?
Utah uses origin-based sourcing for in-state sellers. This means sellers with a physical presence in Utah apply the sales tax rate based on the location of their business (the ship-from address), regardless of where in Utah the customer is located. For remote sellers with no physical presence in Utah, destination-based sourcing applies — the rate is based on the buyer’s location.
Is food taxable in Utah, and at what rate?
Food is generally subject to sales tax in Utah, but it is taxed at a reduced rate rather than being fully exempt. Most unprepared food and food ingredients sold for home consumption are taxable at Utah’s reduced food tax rate of 3%, not the full combined sales tax rate. Food sold for immediate consumption — such as meals from restaurants, cafés, and food trucks — is generally taxed at the full combined sales tax rate. Purchases made with SNAP benefits are exempt entirely.
Does Utah tax custom software the same way as prewritten software?
No — Utah treats them differently. Utah specifies that prewritten software, whether delivered on physical media or downloaded electronically, is taxable, as are digital or electronic goods. Custom software, however, is not taxable regardless of the method of delivery.
Are leases and rentals of tangible personal property subject to Utah sales tax?
Yes. Leases, rentals, and storage of tangible goods used or kept in Utah are taxable. This applies broadly to equipment rentals, vehicle leases, and similar arrangements where the customer takes possession of or uses tangible personal property in Utah.
How does Utah sales tax work for construction contractors?
Utah’s treatment of contractors depends on whether materials are converted into real property. Under a furnish-and-install contract, the contractor is the last person to own the materials as tangible personal property. The contractor must pay sales tax on the purchase of the materials, while the transaction between the contractor and the real property owner is not taxable. However, if the property owner purchases construction materials for use by a third-party contractor, it is the property owner — and not the contractor — who must pay the sales tax. This distinction is particularly important for general contractors, subcontractors, and property developers to understand before structuring their supply and installation agreements.
Can I use the Simplified Electronic Return (SER) in Utah if I’m not in the SST Model 1 program?
Yes. Utah accepts Simplified Electronic Returns (SER) from any seller or tax provider that can transmit the return properly. You don’t need to be in the SST Model 1 program to use the SER—providers like Sovos can file on behalf of any client who opts into that method.
How does my business register for a Utah sales tax license?
Registration is completed online through the Utah Taxpayer Access Point (TAP), where businesses can also manage their Utah sales tax online account, file returns and make payments.
Can I request a sales tax refund?
Businesses or consumers that believe they overpaid Utah state sales tax may be eligible to request a Utah sales tax refund through the Utah State Tax Commission. Eligibility and documentation requirements vary depending on the circumstances of the claim.
Additional Resources
For more information on U.S. sales tax compliance across all 50 states, check out our:
Managing sales tax in Utah and across multiple states can quickly become complex as tax rates, nexus thresholds and filing requirements evolve. Learn how Sovos simplifies compliance and reduces the administrative burden.