Key figures
Utah receivables
2026, with sources
SaaS is taxable
Utah taxes prewritten software however it is delivered: boxed, downloaded or accessed remotely. The Tax Commission’s Publication 64 names SaaS, hosted software and cloud applications explicitly. When a customer uses the software in several places and gives the seller a reasonable allocation, the sale is sourced to those places; without one, to the buyer’s address.
A remote seller registers once its Utah gross revenue passes $100,000 in the current or prior calendar year. The state rate is 4.85%, with local, county and special district taxes on top, administered together by the Tax Commission.
Filing
Returns (TC-62) are filed through Utah’s Taxpayer Access Point on the frequency the Tax Commission assigns — quarterly for an annual liability of $50,000 or less, monthly above it — due the last day of the month after the period. Exemption and resale certificates are kept on file. Customer credit balances that go unclaimed are reported to the Unclaimed Property Division by November 1.
An example
A SaaS company with no Utah employees sells $120,000 of annual subscriptions to Utah customers in 2026. It crossed $100,000 of Utah gross revenue, so it registers, collects at each customer’s combined rate and files through TAP. A customer with offices in Salt Lake City and Denver can give an allocation of users; the Utah share is taxed in Utah and the rest is Colorado’s question.
Custom development billed separately — an integration built for one customer — is not taxable, so invoicing it as its own line keeps it out of the base. A subscription that bundles the two at one price is harder to split after the fact.
Deadlines
- Last day of the month after the periodSales and use tax return: quarterly up to $50,000 of annual tax, monthly aboveTC-62
The federal baseline
This page covers what Utah adds. The federal rules underneath it apply here too.
Common questions
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.
When does a remote seller register?
When Utah gross revenue passes $100,000 in the current or prior calendar year. The 200-transaction test was repealed effective July 1, 2025, so a company with many small Utah customers no longer crosses the line on count alone.
Receivables next door
- IDIdaho receivablesIdaho charges 6% sales tax but excludes SaaS, downloaded and custom software by statute; out-of-state retailers register once Idaho sales exceed $100,000 in 12 months.
- WYWyoming receivablesWyoming doesn’t tax SaaS, PaaS or IaaS but does tax prewritten software however delivered; remote sellers license once gross Wyoming sales exceed $100,000.
- COColorado receivablesA 2.9% state sales tax, a $100,000 nexus threshold, and home-rule cities that write their own rules. The state doesn’t tax SaaS; Denver and some other cities do.
- AZArizona receivablesArizona’s TPT is a tax on the seller, at 5.6% plus city rates. SaaS is taxable as a personal property rental, but the $100,000 economic threshold counts only retail sales.
- NVNevada receivablesA 6.85% state sales tax plus county rates, on tangible goods only — SaaS is not taxable. Remote sellers register at $100,000 or 200 transactions.
- NMNew Mexico receivablesNew Mexico taxes gross receipts, not sales: 4.875% state plus local, on services and software licenses, sourced to the customer. Remote sellers are in at $100,000.
Founder guides on this
- Sales taxSales tax nexus for startups: when you owe tax in a stateSince Wayfair, selling into a state can create a sales tax obligation. How economic nexus works, why SaaS is taxable in some states and when to register.
- RevenueDeferred revenue for SaaS startups, explainedAn annual prepayment is cash today and revenue over a year. How deferred revenue works under ASC 606, why it’s a liability, and the schedule behind it.
- StripeHow to reconcile Stripe payouts to your booksA Stripe payout is charges less fees, refunds and disputes, batched across days. How to book it gross, tie it to the bank, and keep revenue right.
More of the Utah guide
- AccountingAccounting and state tax in UtahCorporate tax, conformity to federal rules, apportionment and what it does to your books
- PayablesPayables and contractors in UtahPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in UtahWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- 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.