Utah – UT Sales Tax Calculator: User Guide

Utah is the 13th-largest by area, the 30th-most-populous and 11th-least-densely populated state located in the western region of the United States. It shares its border with Colorado to the east, Nevada to the west, Idaho to the north, Arizona to the south, and Wyoming to the northeast.

Moreover, Salt Lake City is the capital and the largest city and the largest Metro of Utah.

Nicked named the Beehive State, Utah possesses wide-open spaces, breathtaking landscapes, a thriving economy, a high quality of life, and many opportunities and outdoor activities.

Utah also has a second-best economy and offers a favorable business environment, unmatchable employment opportunities, and growth. Consequently, attracting plenty of job seekers, entrepreneurs, and businesses to settle in.

If you are mulling over to start, relocate, or expand your business in Utah, then you are at the right spot. This article covers all the essential aspects of Utah Sales Tax, one of the most important factors to business in the state.

The Utah Sales Tax Calculator is also placed at the top of this page to help you in your day to day sales tax calculations.

So, Let's Explore!

Utah Sales Tax Facts:

• Sales Tax is levied on both state and local levels in Utah. The state sales tax rate is 4.850%, while the local sales tax (county + city) rate ranges from 1.25% to 4.20%. So, the combined sales tax rate can go up to 9.05%. However, some items are charged at a special sales tax rate, which is discussed ahead.
• Bear River City, Utah, is among the cities that levy the lowest possible combined sales tax rate of 6.100%.
• Park City, Utah, is among cities that levy the highest possible combined sales tax rate of 9.05%.
• The average combined sales tax rate in Utah is 6.816%.
• The retail sales and leases of tangible personal property, including clothing, electronically transferred products like movie downloads, and furniture, are taxable under Utah sales tax law.
• Some services, including laundry services, hotel, and motel rooms, admissions fees (to movies, sporting events, ski resorts, etc.), maintenance and repair labor, and telecom services, are also taxable under Utah sales tax law.
• 3% of a combined sales tax is charged on the sale of groceries and other non-prepared foods.
• Up to 6% of sales tax is charged Residential utilities such as electricity and gas.
• Medical equipment, wheelchairs, college sports events, fuel cells, prescription drugs, prosthetic devices, newspapers, and textbooks are among items that are exempted from sales tax in Utah.
• Items purchased for resale, improvement, or as raw materials by individuals and companies can be exempted from Utah Sales Tax using Utah Sales Tax Exemption Form.
• Goods and taxable services purchased for use or other consumption, or storage in Utah without paying Utah Sales tax (bought tax-free over the internet, bought while traveling) are supposed to be subjected to Utah Use Tax at an equivalent rate of 4.850% plus local sales tax.

How to calculate Sales Tax in Utah?

Businesses and Sellers involved in retail sales and leases of most goods and taxable services, and have Nexus in Utah are required to register for Utah Sales tax and obtain a sales tax permit.

They must collect, manage, and remit it to the Utah State Tax Commission while staying in compliance with state laws and avoid penalties and interest.

The sales tax determined on four factors:

1. Nexus: It is a connection of business with a state. The business is only liable to pay taxes to the states with Nexus.
2. Out of State Seller's Eligibility: Out of State Seller is only required to register, collect, and remit the sales tax to the authorities in the state if it falls under the criteria provided by the state.
3. Location and Products or Services: The sales tax rate varies from product to product and location to location, so you must check the sales tax rate applicable to your product according to the product category, county, and city in Utah.
4. Exemptions: Almost all goods are eligible for sales tax regulation—however, Medical equipment, wheelchairs, college sports events, fuel cells, prescription drugs, prosthetic devices, newspapers, and textbooks are exempt from sales tax.

You should also check with the Utah state government regularly about which goods and services sold in Utah are subject to sales tax.

To calculate Sales Tax in Utah, follow the steps below:

Step 1 – Determine your Nexus:

You, as a Business owner, are only required to collect sales tax if you are eligible for collecting sales tax and have Sales Tax Nexus in the Utah State. And to determine your Nexus in Utah, you must have any of the following:

• Making more than $100,000 in sales annually in the Utah state
• More than 200 transactions in Utah in the previous or current calendar year

Step 2 – Determine the Sales Tax Rate:

Once you have determined that your Nexus is with Utah, next is to deduce the Sales Tax rate (State + County + City) applicable to your product, for which you can refer the tables below:

Step 4 – Calculate Sales Tax:

After determining the sales tax rate according to the location and type of purchases, it is easy to calculate the sales tax amount charged on the product and gross price (amount after tax) of a product.

Example # 1:

For instance, you sell a Smartphone Case on your store in Logan, Utah, having a net cost of $15. The amount of Sales Tax that you have to pay on the Smartphone Case would be:

Manual Method:

Net Price (amount before Tax) of a Smartphone Case: $15

Total Sales Tax rate: 0.300% (Fort Worth) + 1.850% (Cache County) + 4.850% (Utah State) = 7.00%

Total Sales Tax amount = $15 x 7.00% = $1.05

Gross Price (Amount after Tax) = 15 + 1.05 = $15.75

So, the Sales Tax amount charged on the Smartphone Case would be $1.05, raising the gross cost to $15.75.

Using our Sales Tax Calculator:

All of the steps mentioned above can be skipped to get an instant result using our Sales Tax Calculator. All you need is:

1. Input the $15 as the Net Price of a Smartphone Case as Amount Before Tax
2. Input or select 00% of the combined Sales Tax rate on the Tax Rate menu.

Our calculator will automatically calculate the result, and represents it in 3 different forms, as shown in the image below:

Reverse Sales Tax Calculation

In the example above, we have explained to you to calculate the Sales Tax amount payable in a product and the Gross Price of the Product.

But there are also instances when you are required to deduce how much Sales tax you have actually paid on a product in Utah.

This is where the Reverse Sales Tax Calculation Kicks in. And luckily, our Utah Sales Tax Calculator can perform this calculation like a Pro.

Example:

The gross cost (amount after tax) of a Smartphone Charger is $35, which you sell on your store in Taylorsville, Utah. Now, if you want to deduce the amount of sales tax you have actually paid on it and the net cost (amount before tax) of a Smartphone Charger, you can follow the steps below:

Gross Price (Amount after Tax) of Smartphone Charger: $35

Total Sales Tax rate: 0.00% (Taylorsville) + 2.40% (Salt Lake County) + 4.850% (Utah State) = 7.250%

Manual Method:

Gross Price with sales tax = [Net Price × (tax rate in decimal form + 1)]

35 = [Net Price x ((7.25/100) + 1)]

35 = Net Price x 1.07

$32.7 = Net Price

So, the original Price (net price) of the Smartphone Charger would be $32.7.

Using our Sales Tax Calculator:

You can also use our Sales Tax Calculator for Reverse Sales Tax calculation to skip the aforementioned manual method. All you need is:

1. Input the $35 Gross Price of Smartphone Charger as Amount after Tax
2. Input or select 7.25% of combined Sales Tax Rate on the Tax Rate

Our calculator will automatically calculate the result and represents it in 3 different forms.

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