Utah Taxes

 What are the property taxes?

Real estate property tax on a primary residence would be based on approximately .65% of the market value. A second home would be about 1% of the market value. The market value is determined by the county assessor and could be what you paid for the property.  Real Estate taxes are due November 30th each year.

How does Utah income tax rates compare to other states?

The maximum Utah tax rate is 7 percent. Single individuals are taxed at the rate on taxable income more than $4,313 where as married individuals and head of household reach that tax bracket at taxable income exceeding $8,626. California ‘s maximum rate is 9.3 percent; Idaho ‘s is 7.8 percent.

Does Utah have a sales tax?

Utah does have a state sales tax varying between 5.75 and 7 percent depending upon the county in which the purchase is made. Washington County is taxed at either 6 or 6.25 percent.

What is the tax law on the sale of a primary residence?

The tax provisions provide a $250,000 exclusion of capital gain if single, $500,000, if married. You must have resided in the property 2 of the last 5 years and be your primary residence. It may be used once every two years. Any gain above the exclusion is taxed.

What is the IRS Code Section 1031?

The 1031 tax code allows real estate owners to defer capital gains tax when exchanging “like kind” property.  Meaning you can sell any kind of real estate property for another piece of property without incurring capital gain taxes.