Key figures
Utah payroll
2026, with sources
Withholding and unemployment insurance
Utah’s individual income tax is a flat 4.45% for 2026. Because S.B. 60 cut the rate retroactively, the Tax Commission revised Publication 14 and its withholding tables for pay periods beginning on and after June 1, 2026; payroll before that used the 4.5% tables, and the difference settles on employees’ own returns.
Employers register for withholding with the Tax Commission and for unemployment insurance with DWS. Withholding returns (TC-941E) are quarterly and filed electronically; an employer withholding $1,000 or more a month also pays monthly. The 2026 UI wage base is $50,700, up from $48,900 in 2025, and new employers pay their industry’s average rate.
Wage rules
The Labor Commission enforces wage payment under the Payment of Wages Act, which requires regular paydays no further apart than semi-monthly, designated in advance. Utah sets no paid leave or local payroll tax obligations on top of the federal baseline, and state law keeps cities and counties from setting their own minimum wage.
- Minimum wage: $7.25, the federal rate.
- Paydays: at least semi-monthly, paid within 10 days of the period’s close; monthly, by the 7th of the next month, for employees on an annual salary.
- Final pay: within 24 hours of a discharge; next regular payday on a resignation.
- Workers’ compensation: required with any employee.
An example
A startup hiring its first engineer in Lehi at $150,000 a year withholds Utah tax using the Tax Commission’s formula, files TC-941 returns on the frequency assigned, and pays DWS contributions on the first $50,700 of wages at its industry’s new-employer rate. If it lets the engineer go, the final paycheck is due within 24 hours; if the engineer resigns, by the next regular payday.
Compared with Arizona, whose UI wage base is $8,000, the cost per employee is several times higher; compared with Colorado, there is no paid leave premium and no city payroll tax to add.
Deadlines
- Last day of the month after the quarterQuarterly withholding returnTC-941E
- Last day of the following monthMonthly withholding payment, for employers withholding $1,000 or more a monthTC-941PC
- Last day of the month after the quarterUI contribution and wage report
- Jan 31Fourth-quarter return with annual reconciliation and W-2sTC-941E
- Within 20 days of hireNew-hire report
The federal baseline
This page covers what Utah adds. The federal rules underneath it apply here too.
Common questions
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.
Is there a paid leave program?
No. Utah has no state paid family leave program, no state paid sick leave mandate for private employers and no local payroll taxes.
Do Utah cities set their own minimum wage?
No. Utah’s minimum wage is the federal $7.25, and state law stops cities and counties from setting a higher one, so Salt Lake City and Provo follow the same rate as the rest of the state. Market pay for the roles a startup hires is far above it.
Payroll next door
- IDIdaho payrollIdaho payroll is lean: 5.3% flat withholding, a 1.000% standard UI rate on $58,300, workers’ comp from employee one, the federal minimum wage and no paid leave premiums.
- WYWyoming payrollWyoming payroll has no income tax withholding: UI on the first $33,800 at an industry rate, state-fund workers’ comp for extra-hazardous industries, and final pay on the next payday.
- COColorado payrollWithholding, UI and FAMLI are three accounts with three quarterly filings. FAMLI is 0.88% in 2026, and Denver adds a higher minimum wage and a monthly head tax.
- AZArizona payrollA flat 2.5% income tax withheld at the employee’s Form A-4 election, UI on the first $8,000 of wages, a $15.15 minimum wage and earned paid sick time from the first employee.
- NVNevada payrollNo wage tax, but a payroll tax: the Modified Business Tax at 1.17% on quarterly wages above $50,000, alongside ESD unemployment insurance on a $43,700 wage base.
- NMNew Mexico payrollGraduated withholding up to 5.9%, UI on a $34,800 wage base, a $12.00 minimum wage with higher local rates, and paid sick leave under the Healthy Workplaces Act — but no paid family leave program.
How Utah compares
- No tax on wagesStates with no state income tax on wagesUtah: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programUtah: no state program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesUtah: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the Utah guide
- AccountingAccounting and state tax in UtahCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in UtahSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in UtahPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in UtahRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in UtahCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
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.