Utah — Sales & Use Tax

Utah imposes sales and use tax on the purchaser for amounts paid or charged on a defined list of transactions. The tax is imposed on retail sales of tangible personal property made within the state, telecommunications services, sales of gas, electricity, heat, and other fuels for commercial and residential use, sales of prepared food, admissions and user fees, laundry and dry cleaning services, leases or rentals of tangible personal property, and sales of electronically transferred products that would be taxable if transferred in physical form.

Source: Utah Code § 59-12-103(1)

The statewide base sales and use tax rate varies by transaction type. For most retail sales of tangible personal property and taxable services, the combined state and local rate applies. For sales of residential energy (gas, electricity, heat, coal, fuel oil, or other fuels), a reduced state tax rate of 2% applies, plus applicable local taxes.

Source: Utah Code § 59-12-103(2)

Food and food ingredients are subject to a reduced statewide rate of 3.0%, which includes a 1.75% state component, a 1.0% local option component, and a 0.25% county option component.

Source: Utah Tax Commission Combined Sales and Use Tax Rates, effective January 1, 2026

Combined state and local sales tax rates vary by location. The state component plus mandatory local additions create effective rates that range across Utah jurisdictions, with combined rates typically between 6.1% and 8.85% depending on the city or county where the transaction is sourced. Local governments may impose additional sales taxes under various authorizations in Title 59, Chapter 12, including county option taxes, mass transit taxes, highway taxes, and resort community taxes.

Source: Utah Tax Commission Combined Sales and Use Tax Rates, effective January 1, 2026

The Utah State Tax Commission publishes combined rate tables quarterly, which include all applicable state and local components. Retailers and remote sellers should source transactions to the buyer's location using ZIP+4 codes for out-of-state sales delivered into Utah.

Source: Utah Tax Commission Sales & Use Tax Rates page

Review status: Not yet human confirmed. The statute defines the tax base broadly; practitioners should consult Utah Code § 59-12-104 for exemptions and Publication 25 from the Utah Tax Commission for detailed taxability guidance on specific transaction types.

Utah imposes sales and use tax collection obligations on remote sellers that exceed $100,000 in gross revenue from sales of tangible personal property, electronically transferred products, or services for storage, use, or consumption in Utah during the current or previous calendar year. The threshold applies to total gross revenue, not just taxable sales. Prior to July 1, 2025, Utah also imposed a 200-transaction threshold, which was eliminated by S.B. 47 (Laws 2025).

Source: Utah Code § 59-12-107(2)(c)

Any seller making retail sales of tangible personal property or providing taxable services subject to Utah sales and use tax must obtain a sales and use tax license. This requirement applies to sellers with physical presence in Utah (such as a store, office, warehouse, employees, or inventory) and to remote sellers that exceed the $100,000 economic nexus threshold. A seller must register before making its first taxable sale in Utah.

Utah law imposes no fee for the sales and use tax license. Registration is completed online via the Utah State Tax Commission's Taxpayer Access Point (TAP) system. Applicants provide their federal employer identification number, business details, and an estimate of anticipated sales and use tax liability; the Tax Commission assigns an initial filing frequency based on this estimate.

A seller is required to collect sales tax from the date it triggers nexus, not from the date it completes registration. If a gap exists between the nexus date and the registration date, the seller may owe tax for that prior period.

Source: Utah Code § 59-12-106 | Utah Tax Commission Registration Page

The Utah Tax Commission assigns filing frequency based on a seller's annual sales and use tax liability. Sellers with liability of $50,000 or more must file monthly. Sellers with liability between $1,000 and $50,000 may file quarterly. Sellers with liability under $1,000 may file annually. Returns are due by the last day of the month following each filing period. Monthly filers who file and pay timely may claim a 1.31% seller discount on certain sales and use taxes; quarterly and annual filers are not eligible for the discount.

Source: Publication 25, Sales and Use Tax General Information

Utah exempts sales for resale from sales and use tax, but sellers must obtain and retain proper documentation to support the exemption. Under Utah Code § 59-12-107(8), when a wholesaler sells tangible personal property or any other taxable item to a retailer, the wholesaler is not responsible for collecting or paying the tax if the retailer represents that the purchase is for resale. If the retailer does not subsequently resell the property, the retailer—not the wholesaler—becomes solely liable for the tax.

Form TC-721 requirements

To document an exempt resale transaction, current Utah Tax Commission policy requires sellers to obtain a completed Utah Sales Tax Exemption Certificate (Form TC-721) from the purchaser. The form must include the purchaser's business name, address, telephone number, and signature. For the resale exemption specifically, the purchaser must enter their Utah sales tax license number in the designated field and check the "Resale or Re-Lease" box on the form. The certification language on Form TC-721 states: "I certify I am a dealer in tangible personal property or services that is for resale or re-lease. If I use or consume any tangible personal property or services I purchase tax free for resale … I will report and pay the sales tax … directly to the Tax Commission on my next regular sales and use tax return."

Out-of-state purchasers and multijurisdiction certificates

For sales to out-of-state purchasers who do not have nexus with Utah, the seller has two documentation options. First, the seller may obtain a completed Form TC-721 on which the out-of-state purchaser uses its home-state sales tax number in place of a Utah number. Second, as an alternative, the seller may keep on file a letter from the purchaser stating that the purchaser has no nexus with Utah under Utah Code § 59-12-107 and that items purchased are intended for resale. Utah is a full member of the Streamlined Sales and Use Tax Agreement (effective October 1, 2012) and accepts the Streamlined Sales Tax Certificate of Exemption for qualifying resale purchases. Sellers must ensure that out-of-state certificates comply with Utah-specific requirements to avoid audit issues.

Seller reliance and good-faith acceptance

Utah does not require sellers to verify resale certificates with the Tax Commission before accepting them. Tax Commission Ruling 99-029 provides that if an exemption certificate is accepted in good faith, it releases the vendor from liability for uncollected sales tax. The ruling further states that as long as the vendor has an exemption certificate on file, the vendor is not liable for an exemption claimed in error by the purchaser. Utah permits the use of blanket resale certificates: a single certificate on file with a vendor can cover all exempt purchases from that vendor, and a new certificate is not required for each transaction.

Retention and renewal

Sellers must retain resale certificates for at least three years after the exempt sale to satisfy audit documentation requirements. The exemption certificate remains valid until revoked by the vendor or the Tax Commission. Tax Commission Ruling 99-029 recommends, as a routine matter, that sellers obtain new exemption certificates every three years. The ruling also recommends renewing any blanket exemption certificate whenever the seller is aware that a customer's business activities have changed or whenever changes in law are likely to impact that customer's exempt status. In addition to the exemption certificate, sellers must keep a copy of the sales invoice showing the name and identity of the customer.

Source: Utah Code § 59-12-107(8) | Form TC-721, Utah Sales Tax Exemption Certificate | Tax Commission Ruling 99-029 | Tax Commission Ruling 96-020

Utah requires marketplace facilitators to collect and remit sales and use tax on sales they facilitate on behalf of marketplace sellers, effective October 1, 2019. A marketplace facilitator is a person (including an affiliate) that contracts with sellers to facilitate sales of tangible personal property, electronically transferred products, or services through a marketplace the facilitator owns, operates, or controls, and that directly or indirectly performs at least one of the following activities: (a) lists or advertises products for sale on the marketplace; (b) facilitates the sale by transmitting or communicating offers or acceptances between the seller and purchaser; (c) owns, rents, or operates the infrastructure or intellectual property connecting sellers and buyers; (d) collects payment from the purchaser and transmits it to the seller (whether directly or through a third party); (e) provides fulfillment or storage services; (f) sets prices for the seller's products; (g) offers customer service related to orders, returns, or exchanges; or (h) brands the sale as the marketplace's sale.

Exclusions from facilitator definition

A person who only provides payment processing services is not a marketplace facilitator. In addition, as of July 1, 2020, a person who facilitates restaurant sales is not a marketplace facilitator for those transactions.

Collection threshold and effective date

A marketplace facilitator has sales tax collection obligations if, in either the current or previous calendar year, the facilitator makes or facilitates more than $100,000 of sales in Utah. This threshold applies to the facilitator's combined direct sales plus sales facilitated on behalf of marketplace sellers. An out-of-state facilitator without physical presence must begin collecting and remitting Utah sales and use tax no later than the first day of the calendar quarter that is at least 60 days after the day the facilitator meets or exceeds the $100,000 threshold. For example, if a facilitator crosses $100,000 on March 8, 60 days later is May 7 (in Q2); the facilitator must begin collecting no later than the start of the next quarter (July 1).

Deemed seller status and tax base

Utah treats a marketplace facilitator as the seller of all goods and services the facilitator facilitates. The facilitator must collect sales tax on the total purchase price of taxable products sold through the marketplace and on fees the marketplace charges buyers for using the marketplace. Delivery charges, cash discounts, nonreimbursed manufacturer coupons, and fees the marketplace charges to sellers (such as listing, referral, or payment processing fees paid by sellers) are excluded from the tax base.

Marketplace seller obligations

Marketplace sellers are not required to collect or remit sales and use tax on sales facilitated by a marketplace facilitator. A marketplace seller does not need a Utah sales tax license for facilitated sales unless the seller also has independent Utah nexus (under Utah Code § 59-12-107) and makes sales outside the marketplace. If a marketplace seller holds a Utah sales tax license, the seller must file returns but does not report or remit tax on marketplace-facilitated sales. Marketplace sellers are not liable for a facilitator's failure to collect or any underpayment of tax on facilitated sales, and sellers cannot opt out of having the facilitator collect tax on their behalf.

Facilitator recordkeeping and liability relief

Marketplace facilitators must maintain books and records that separately show the facilitator's own direct sales and the sales the facilitator makes on behalf of marketplace sellers. Facilitators are not liable for failing to collect tax if they demonstrate that: (1) the facilitator made or facilitated the sale through its marketplace; (2) the failure to collect was due to a good-faith error other than an error in sourcing; and (3) for sales made or facilitated in 2019 or 2020, the facilitator's error rate does not exceed 7%; for sales in 2021, the error rate does not exceed 5%; and for sales in 2022, the error rate does not exceed 3%. The error rate is calculated as a percentage of total sales and use taxes due on all sales the facilitator made or facilitated in Utah during the calendar year.

Scope of taxes collected

In addition to sales and use tax, marketplace facilitators must collect all sales-related taxes imposed under Title 59, Chapter 12, including transient room tax, tourism taxes, motor vehicle rental tax, and municipal telecommunications license taxes, to the extent the facilitator facilitates transactions subject to those taxes.

Source: Utah Code § 59-12-107.6 | Publication 71, Sales Tax Information for Marketplace Sellers and Marketplace Facilitators | Utah Tax Commission Marketplace Facilitators page