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Capital Gains Tax in Utah
By Priya Raman
A flat 4.65% applies whether the gain is large or small.
A flat 4.65% applies whether the gain is large or small.
Utah runs a flat income tax, and capital gains get swept into it at the same 4.65% rate as everything else. Combined with the federal 20% and the 3.8% NIIT, an investment property seller faces a ceiling of 28.5%.
There's no bracket to climb in Utah; the flat 4.65% state rate applies to a capital gain the same way it applies to a paycheck. Add the federal and NIIT shares and the ceiling comes to 28.5% combined. Run specific numbers, with depreciation recapture included, through the capital gains tax calculator.
Because Utah's rate is flat, a 1031 exchange here defers a fixed, predictable share of the gain: 4.65% state, plus the federal and NIIT portions, for a combined 28.5%. No separate state exchange rules to track, just the standard 45-day and 180-day federal windows. Model the swap in the 1031 exchange calculator and watch both deadlines through the timeline calculator.
The mechanics behind the Utah figures above are covered in more depth in what is a 1031 exchange and how to defer capital gains with a 1031.