Utah is a state in the western part of the country. It is renowned for its breathtaking natural landscape, skiing areas, and options for outdoor leisure. Utah is a middle-of-the-road state in terms of taxation. Nevertheless, some things are not subject to taxes in Utah.
Groceries are one of the things that are not taxed in Utah. This covers food products intended for domestic consumption. The state’s sales tax rate, however, is applicable to prepared food, such as restaurant meals. Additionally, prescription medications and medical supplies are tax-free in Utah.
Intangible personal property is another thing that is not subject to taxation in Utah. This covers things like trademarks, copyrights, and patents. Additionally, Utah does not impose an inheritance or estate tax.
According to the Tax Foundation, Utah has the 22nd highest tax burden of all the states. The state’s flat individual income tax rate of 4.95% is lower than the average level in the country. However, at 6.1%, Utah’s sales tax rate is higher than the average for the US. Utah’s property taxes rank 36th out of all states in terms of affordability.
Utah is not one of the states with no income tax, but it is not regarded as having high taxes either. Currently, nine states—Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire, and Tennessee—do not impose an individual income tax on its residents. To make up for the absence of income tax revenue, some of these states may have high sales or property taxes.
Tennessee has one of the highest sales tax rates in the US, at 9.55%. Oregon, which has no state sales tax at all, has the lowest rate of sales taxes. However, Oregon’s local governments may have their own unique sales tax rates.
To sum up, there are a number of things that are not subject to taxation in Utah, such as food, prescription medications, and intangible personal property. With a comparatively low income tax and property tax rate but a higher sales tax rate, Utah is in the middle of all the states in terms of taxation. Utah is not one of the states with no income tax, but it is not regarded as having high taxes either. While Oregon has no state sales tax at all, Tennessee has the highest sales tax rate in the country.
What is Exempt from Tax in Utah?