Utah

UT inheritance (pickup) tax eliminated after Dec 31, 2004

“Federal changes phased out the national inheritance tax and, therefore, eliminated Utah's inheritance tax after December 31, 2004.”

Note: Same page: 'Utah inheritance tax returns do not need to be filed. Utah does not require an Inheritance Tax Waiver.' Statute backup: Utah Code 59-11.

Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)

“the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025”

Note: HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).

Utah flat income tax rate is 4.45% for TY2026 (Ch. 250, 2026 General Session)

“(2) For purposes of Subsection (1), for a taxable year, the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.45%.”

Note: Codified text carries the header 'Effective 1/1/2026' and the note 'Amended by Chapter 250, 2026 General Session'. Successor to the TY2025 4.5% rate (HB 106).

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

UT exempts UT-issued bonds; out-of-state muni bonds are taxable except from reciprocal or no-tax states

“There shall be added to adjusted gross income of a resident or nonresident individual: ... (e) except as provided in Subsection (5), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness ... issued by ... a state other than this state ... to the extent the interest is not included in adjusted gross income on the taxpayer's federal income tax return for the taxable year. Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not be added to adjusted gross income of a resident or nonresident individual if, as annually determined by the commission ... the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state.”

Note: Interest earned on Utah municipal bonds is exempt from Utah income tax. Do not enter interest earned on non-Utah municipal bonds if the issuer does not impose an income tax on bonds issued by Utah, or the issuing state does not impose an income tax. UCA §59-10-114(2)(a) provides a subtraction for Utah bond interest. §59-10-114(1)(e) adds back out-of-state muni interest UNLESS: (a) the issuing state does not tax Utah bonds, or (b) the issuing state has no income tax. Effectively exempts bonds from AK, FL, NV, SD, TN, TX, WY, WA and any state that exempts UT bonds reciprocally. Most out-of-state bonds are taxable; reciprocity exception applies case-by-case.

UT exempts UT-issued bonds; out-of-state muni bonds are taxable except from reciprocal or no-tax states

“There shall be added to adjusted gross income of a resident or nonresident individual: ... (e) except as provided in Subsection (5), for bonds, notes, and other evidences of indebtedness acquired on or after January 1, 2003, the interest from bonds, notes, and other evidences of indebtedness ... issued by ... a state other than this state ... to the extent the interest is not included in adjusted gross income on the taxpayer's federal income tax return for the taxable year. Notwithstanding Subsection (1)(e), interest from bonds, notes, and other evidences of indebtedness issued by an entity described in Subsections (1)(e)(i)(A) through (D) may not be added to adjusted gross income of a resident or nonresident individual if, as annually determined by the commission ... the entity and all of the political subdivisions, agencies, or instrumentalities of the entity do not impose a tax based on income on any part of the bonds, notes, and other evidences of indebtedness of this state.”

Note: Interest earned on Utah municipal bonds is exempt from Utah income tax. Do not enter interest earned on non-Utah municipal bonds if the issuer does not impose an income tax on bonds issued by Utah, or the issuing state does not impose an income tax. UCA §59-10-114(2)(a) provides a subtraction for Utah bond interest. §59-10-114(1)(e) adds back out-of-state muni interest UNLESS: (a) the issuing state does not tax Utah bonds, or (b) the issuing state has no income tax. Effectively exempts bonds from AK, FL, NV, SD, TN, TX, WY, WA and any state that exempts UT bonds reciprocally. Most out-of-state bonds are taxable; reciprocity exception applies case-by-case.

Utah conforms to IRC §1400Z-2 QOZ gain deferral and exclusion

“(a)(i) "Adjusted gross income": (A) for a resident or nonresident individual, means the same as that term is defined in Section 62, Internal Revenue Code; or (B) for a resident or nonresident estate or trust, is as calculated in Section 67(e), Internal Revenue Code.”

Note: Utah Code §59-10-103 defines adjusted gross income by direct reference to IRC §62, so the federal §1400Z-2 QOZ deferral and exclusion flow into the Utah base; no Utah addback exists.

Utah conforms to IRC §1202 QSBS gain exclusion via rolling IRC conformity

“Verbatim text of §59-10-104 not separately extracted; conformity established through §59-10-102 incorporation of federal definitions.”

Note: Utah Code §59-10-102 incorporates federal IRC definitions by reference. Utah Code §59-10-104 establishes the flat 4.5% tax on Utah taxable income, which incorporates federal taxable income starting point. §1202 QSBS provisions apply via Utah's rolling conformity to federal definitions. Confidence medium: statutory structure indicates conformity but specific QSBS verbatim quote not extracted.

Utah taxes FNMA and FHLMC bond interest: Utah starts from federal taxable income (which includes FNMA/FHLMC interest); the §59-10-114(1)(e) add-back applies only to IRC §103-excluded muni interest

“There shall be subtracted from adjusted gross income of a resident or nonresident individual: (a) the difference between: (i) the interest or a dividend on an obligation or security of the United States or an authority, commission, instrumentality, or possession of the United States, to the extent that interest or dividend is: (A) included in adjusted gross income for federal income tax purposes for the taxable year; and (B) exempt from state income taxes under the laws of the United States.”

Note: Utah Code §59-10-114(2)(a) subtracts only interest on United States obligations that is exempt from state income taxes under the laws of the United States. FNMA and FHLMC interest is included in federal adjusted gross income and is not federally protected from state taxation, so it remains in the Utah base.

Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)

“the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025”

Note: HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).

U.S. Treasury interest exempt from Utah income tax: 31 U.S.C. §3124(a) prohibits state taxation of U.S. government obligations

“Stocks and obligations of the United States Government are exempt from taxation by a State or political subdivision of a State. The exemption applies to each form of taxation that would require the obligation, the interest on the obligation, or both, to be considered in computing a tax.”

Note: 31 U.S.C. §3124(a) preempts state income taxation of U.S. government obligations. Covers T-bills, T-notes, T-bonds, TIPS, and I-bonds. Most states allow a deduction or subtraction by statute cross-referencing this federal preemption.

FHLB and FFCB bond interest exempt from Utah income tax: federal enabling statutes mandate state tax exemption

“Any security issued under this chapter by a Federal home loan bank, including the stock thereof, shall be exempt from taxation, except taxes upon real estate, by any State, county, municipality, or local taxing authority.”

Note: 12 U.S.C. §1433 (FHLB) and 12 U.S.C. §2023 (FFCB/Farm Credit Act) both mandate state tax exemption for securities issued under their chapters. Contrasts with FNMA (12 U.S.C. §§1719(e), 1723a(c)) and FHLMC (12 U.S.C. §1455(a)) which have no bondholder exemption statute and whose interest is taxable by income-tax states.

Farm Credit Act: notes, bonds, debentures, and other obligations of Farm Credit Banks are instrumentalities of the United States exempt from all State, municipal, and local taxation

“The mortgages held by the Farm Credit Banks and the notes, bonds, debentures, and other obligations issued by the banks shall be considered and held to be instrumentalities of the United States and, as such, they and the income therefrom shall be exempt from all Federal, State, municipal, and local taxation, other than Federal income tax liability of the holder thereof under the Public Debt Act of 1941 (31 U.S.C. 3124).”

Note: 12 U.S.C. §2023 explicitly covers 'the income therefrom' (i.e., interest payments to bondholders), exempting it from all State and local taxation. The only carve-out is federal income tax on the holder. Parallel to 12 U.S.C. §1433 (FHLB Act), which exempts FHLB securities from state taxation. Together §1433 and §2023 mandate state and local tax exemption for both FHLB and FFCB bond interest. Shared across all jurisdictions: a single object reference satisfies buildCitationIndex() identity check.

IRC §1212(b): capital losses carry forward only for non-corporate taxpayers; no carryback

“In the case of a taxpayer other than a corporation, if there is a net capital loss for any taxable year: (1) the excess of the net short-term capital loss over the net long-term capital gain for such year shall be a short-term capital loss in the succeeding taxable year, and (2) the excess of the net long-term capital loss over the net short-term capital gain for such year shall be a long-term capital loss in the succeeding taxable year.”

Note: IRC §1212(b) limits non-corporate taxpayers to carrying losses forward only ('succeeding taxable year'). IRC §1212(a), which allows a 3-year carryback, applies only to corporations. For conformity states, the federal carryforward amount flows to the state return unchanged.

Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)

“the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025”

Note: HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).

Utah flat income tax rate is 4.5% for TY2025 (HB 106 retroactive)

“the tax is an amount equal to the product of: (a) the resident individual's state taxable income for that taxable year; and (b) 4.5%. ... Section 9. Retrospective operation. This bill has retrospective operation for a taxable year beginning on or after January 1, 2025”

Note: HB 106 (2025 GS) cut the §59-10-104 flat rate from 4.65% to 4.5% retrospective to TY2025. Superseded for TY2026: Ch. 250 (2026 GS) amends §59-10-104 to 4.45% effective January 1, 2026 (see ut-code-59-10-104-flat-4-45pct-2026).

Utah adopted UDCPRDA (Uniform Disposition of Community Property Rights at Death Act) in 2012

“Upon the death of a married person, one-half of the property to which this chapter applies is the property of the surviving spouse and is not subject to testamentary disposition by the decedent or distribution under the laws of succession of this state.”

Note: Utah enacted UDCPRDA in 2012 (1971 original uniform act). Protects community property character of assets acquired in community property states when a couple moves to Utah.

Utah conforms to the federal capital-loss base; treatment of an imported pre-residency section 1212 carryforward is a structural inference

“A tax is imposed on the state taxable income of a resident individual as provided in this section. There shall be added to adjusted gross income of a resident or nonresident individual: (a) a lump sum distribution that the taxpayer does not include in adjusted gross income on the taxpayer's federal individual income tax return for the taxable year.”

Note: Utah begins from federal adjusted gross income (Sections 59-10-104 and 59-10-114), so the federal Section 1212 capital-loss carryover flows through. No published guidance addresses the treatment of a carryforward imported from a pre-residency year; that application remains a structural inference.