Utah taxes capital gains at 4.65%. Combined with federal taxes, your effective rate on a home sale could reach 23.4%.
UT State Rate
4.65%
Flat tax rate
Federal Rate
15%
Most common long-term bracket
Combined Effective
23.4%
On $150K taxable gain (example)
After the $250K/$500K exclusion, here's what a typical seller might owe.
If Utah is where your primary residence is located and you've lived there at least 2 of the last 5 years, you can exclude up to $250K (single) or $500K (married filing jointly) of your capital gain from both federal and state taxes.
Investment and rental properties in Utah don't qualify for the exclusion. You'll owe 4.65% state tax plus federal tax on the full gain, plus 25% depreciation recapture on any depreciation claimed.
In Utah, homes sold in February sell for 9% more than those sold in March (-6%). Timing your sale right can offset a significant portion of your tax bill.
Capital gains tax rates on home sales in Utah and nearby states.
| State | Rate | Tax on $150K Gain | Notes |
|---|---|---|---|
Wyoming0% | 0% | $0 | No state income tax |
Nevada0% | 0% | $0 | No state income tax |
| 2.5% | $3,750 | Flat tax rate | |
| 4.4% | $6,600 | Flat tax rate | |
UtahYou | 4.65% | $6,975 | Flat tax rate |
| 5.695% | $8,543 | Flat tax rate |
Selling in Wyoming instead of Utah would save $6,975 in state tax on a $150K gain.
Utah taxes capital gains at a flat 4.65% rate. The flat rate is straightforward for tax planning.
The Salt Lake City metro and Utah County (Provo/Orem) have seen strong appreciation driven by the tech sector.
Utah does not offer a preferential capital gains rate. All income is taxed uniformly at 4.65%.
The state's strong population growth and limited buildable land (mountains, public land) have driven significant appreciation in the Wasatch Front corridor.
Offering buyer concessions?
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