Sales Tax Rules
Utah imposes a state sales tax rate of 4.85%, with a maximum combined rate (state plus local) of 9.55% when local taxes are added. Economic nexus is triggered at $100,000 in sales — meaning out-of-state businesses that exceed this threshold must collect and remit Utah sales tax. SaaS and digital software products are taxable in Utah. Groceries are subject to sales tax in Utah.
SaaS Tax Details
Remotely accessed prewritten software (SaaS) is taxable.
Grocery Details
Taxed at a reduced state rate of 1.75% plus applicable local taxes.
What is the sales tax rate in Utah?
Utah's state sales tax rate is 4.85%. When local taxes are added, the maximum combined rate can reach 9.55%. The actual rate you pay depends on the county and city where the purchase is made.
What is the economic nexus threshold in Utah?
Utah requires out-of-state businesses to collect sales tax once they exceed $100,000 in sales in a calendar year. Once nexus is established, the business must register, collect, and remit Utah sales tax.
Is SaaS taxable in Utah?
Yes. Utah considers SaaS (Software as a Service) taxable. Businesses selling SaaS products to Utah customers must collect sales tax. Remotely accessed prewritten software (SaaS) is taxable.
Are groceries taxed in Utah?
Groceries are subject to sales tax in Utah. Taxed at a reduced state rate of 1.75% plus applicable local taxes.
Are digital goods taxable in Utah?
Yes. Utah taxes digital goods including downloaded software, music, movies, and e-books. Businesses selling digital products to Utah customers should collect sales tax.
Are clothing items exempt from sales tax in Utah?
Clothing is subject to sales tax in Utah at the standard state rate.
How often do I need to file sales tax in Utah?
Utah requires sales tax filing on a Monthly, Quarterly, or Annual. Online filing is available through the official Department of Revenue portal.
Automate Utah Sales Tax Compliance — Partner Services
Managing sales tax across multiple states is complex. These tools automate registration, calculation, filing, and remittance so you stay compliant without the headache.
Sponsored. DataTactic may earn a referral fee from these partners. This does not affect our data or editorial content.
Official Source
Utah Department of Revenue
Last verified: 2026-03-26 · Always confirm current rates with your tax advisor before filing.