At a glance
- Corporate tax
- 4.45% ($100 minimum)
- Tax on wages
- 4.45% flat
- Sales tax
- 4.85% + local
- Economic nexus
- $100,000 in sales
- Minimum wage
- $7.25/hr
- UI wage base
- $50,700
- New-employer UI rate
- Industry average
- Paid leave program
- None
- Annual report
- Annual renewal, anniversary — $18
2026 figures, each explained with its source on the area’s page. On top of the federal baseline.
Setup, in order
Register the corporation
Before doing business in Utah — usually the first hire or officeRegister as a foreign corporation with the Division of Corporations and Commercial Code and appoint a Utah registered agent.
Register for withholding
Before the first Utah payrollRegister for withholding with the Tax Commission through Taxpayer Access Point (TAP).
Register for unemployment insurance
When you first pay wages in UtahOpen an unemployment insurance account with the Department of Workforce Services.
Report new hires
Within 20 days of each hireReport each new or rehired employee to the Utah New Hire Registry.
Buy workers’ compensation
Before the first employee startsWorkers’ compensation is required from the first employee.
Get a sales tax license
On physical presence, or at $100,000 of Utah revenueRegister for a sales tax license with the Tax Commission through TAP.
The six areas
- AccountingAccounting and state tax in UtahUtah’s corporate franchise and income tax is 4.45% of net income for 2026, with a $100 minimum, apportioned on sales for most companies.Corporate franchise and income tax4.45%
- ReceivablesReceivables and sales tax in UtahUtah taxes SaaS as prewritten software used in Utah, at 4.85% plus local rates. Remote sellers register at $100,000 of Utah revenue; the transaction count is gone.State sales tax4.85%
- PayablesPayables and contractors in UtahUtah wants 1099s that show Utah withholding by Jan 31, has no contractor withholding, and charges use tax on software, SaaS included, used in Utah.State 1099 filingJan 31
- PayrollPayroll taxes and employer rules in UtahA flat 4.45% income tax, a $50,700 UI wage base with industry-average rates for new employers, the federal minimum wage and a 24-hour final-pay rule.State income tax4.45%
- ComplianceCompliance and filings in UtahRegister for $59, renew for $18 on each anniversary, file the TC-20 with at least the $100 minimum tax, and report unclaimed property each year.Foreign registration$59
- AdvisoryAdvisory: credits and decisions in UtahUtah’s research credit is non-refundable, with a 5% part that carries forward 14 years and a 7.5% part that doesn’t. QSBS follows the federal rule.Research credit — incremental5%
Who you register with
- Utah State Tax CommissionCorporate franchise and income tax, withholding, sales tax
- Utah Department of Workforce Services (DWS)Unemployment insurance account and new-hire registry
- Utah Division of Corporations and Commercial CodeForeign registration and annual renewal
- Utah Labor CommissionWage and hour enforcement, workers’ compensation
- Utah Unclaimed Property Division (State Treasurer)Annual unclaimed property report
Hiring across the border
An employee who lives in one state and works in another is the most common way a startup ends up registered in two. These are Utah’s neighbors.
- IDIdahoFlat 5.3% taxes, close federal conformity, no tax on SaaS and no local payroll taxes
- WYWyomingNo income taxes at all; a $60 license tax, state-fund workers’ comp and no tax on SaaS
- COColoradoFlat 4.4% tax, FAMLI premiums, and home-rule cities that run their own sales tax
- AZArizonaTPT taxes the seller, SaaS is a rental, and the R&D credit no longer pays out in cash
- NVNevadaNo income tax; a payroll tax called the MBT and a Commerce Tax above $4 million
- NMNew MexicoA gross receipts tax on services, a flat 5.9% corporate rate and combined returns
Common questions
Is Utah’s “franchise tax” an extra tax?
The same thing, legally. Utah levies a corporate franchise tax on corporations doing business in Utah and an income tax on those that only earn income here, at the same rate and on the same base. It is a tax on net income, not on capital or gross receipts.
Is SaaS taxable in Utah?
Yes. The Tax Commission treats hosted software, application service providers and SaaS as remotely accessed prewritten software, taxable when it is used in Utah. Custom software and separately stated modifications are not taxable.
Do we owe use tax on SaaS we buy?
Yes, if the vendor didn’t charge Utah tax. Prewritten software used in Utah is taxable however it is delivered, including SaaS, and the buyer owes use tax at the rate where the software is used.
What UI rate will we pay?
It depends on the industry. DWS assigns new employers the average rate for their industry until they have their own experience, inside a 2026 range of 0.1% to 7.1% on the first $50,700 of each employee’s wages.
What is Utah’s annual report?
Utah calls it an annual renewal. It is filed online with the Division of Corporations each year by the registration anniversary, and costs $18, plus a $10 late fee once it is past due. An entity that lets it lapse long enough expires and has to reinstate.
Is the Utah research credit refundable?
No. Utah’s research credit offsets tax only. The 5% incremental pieces carry forward 14 years; the 7.5% current-year piece is lost if there is no tax to use it against. For a loss-making startup paying the $100 minimum, the carryforward is the part that matters.
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- Utah State Tax Commission — C corporation tax
- Utah State Tax Commission — TC-20 instructions (due date, extension, estimated tax)
- Utah Legislature — S.B. 60 (2026), Income Tax Rate Amendments, enrolled
- EY Tax News — Utah lowers income tax rate retroactive to January 1, 2026
- Utah Code §59-7-319 — Sales factor, receipts from services
- Utah Code §59-7-311 — Apportionment, sales factor
- Utah State Tax Commission — Credit for Increasing Research Activities in Utah
- Utah State Tax Commission — Publication 64 (software)
- Utah State Tax Commission — Sales and use tax
- Utah Code §59-12-107 — Remote seller collection threshold (effective July 1, 2025)
- Utah State Tax Commission — Withholding (Pub 14)
- Utah Department of Workforce Services — UI tax rates
- Utah Labor Commission — Wage and hour
- Utah New Hire Registry
- Utah Division of Corporations — Fee schedule (FY2026)
- Utah Division of Corporations — Renewal process
- Utah Unclaimed Property Division — Holder reporting
- NAUPA (National Association of State Treasurers) — Utah reporting
- Drake Software — Utah SALT deduction workaround (PTE election, Form TC-75)
- Utah Code §34-28-3 — Payment of Wages
- Utah Code §34-28-5 — Separation from payroll
- Utah Code §34-40-106 — Local minimum wage preempted
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.