NE, MN, UT, MT Paycheck Tax Guide 2025-26
Side-by-side take-home pay at $50K, $75K, $100K plus Montana's 2024 reform and Utah's credit advantage.
11 min readRead →
Utah's flat 4.55% rate applies only after the standard deduction reduces your taxable income. Then a $878 personal exemption credit is subtracted directly from your computed tax bill. These two mechanisms together mean most Utah workers pay far less than 4.55% of their gross salary in state tax. At $65,000, the effective rate is roughly 2.2%. At $100,000, it reaches about 3.0%. The headline rate of 4.55% only approaches reality at very high incomes above $600,000.
| Annual Salary | UT Taxable Income | Raw UT Tax | Less $878 Credit | Net UT Tax | Effective Rate |
|---|---|---|---|---|---|
| $40,000 | $25,400 | $1,156 | −$878 | $278 | 0.7% |
| $55,000 | $40,400 | $1,838 | −$878 | $960 | 1.7% |
| $65,000 | $50,400 | $2,293 | −$878 | $1,415 | 2.2% |
| $85,000 | $70,400 | $3,203 | −$878 | $2,325 | 2.7% |
| $100,000 | $85,400 | $3,886 | −$878 | $3,008 | 3.0% |
| $150,000 | $135,400 | $6,161 | −$878 | $5,283 | 3.5% |
Single filers with no pre-tax deductions. The $878 personal exemption credit is nonrefundable, it reduces UT tax to zero if credit exceeds computed tax. At ~$34,000 gross, the credit eliminates UT tax entirely.
Despite having a higher stated ratethan Colorado (4.55% vs 4.40%), Utah's $878 personal exemption credit makes it consistently cheaper for nearly all income levels. Colorado has no equivalent credit. The math: Utah's effective edge over Colorado disappears only when taxable income exceeds roughly $585,000, a threshold almost no wage earner reaches. Nevada and Wyoming have no state income tax, making Utah the mid-cost option among western states.
| Annual Salary | Nevada (0%) | Utah (4.55% eff.) | Colorado (4.40%) | Arizona (2.5%) | UT vs CO |
|---|---|---|---|---|---|
| $50,000 | $0 | $405 | $1,518 | $890 | UT saves $1,113 |
| $65,000 | $0 | $1,415 | $2,218 | $1,260 | UT saves $803 |
| $85,000 | $0 | $2,325 | $3,098 | $1,760 | UT saves $773 |
| $100,000 | $0 | $3,008 | $3,758 | $2,135 | UT saves $750 |
| $150,000 | $0 | $5,283 | $5,958 | $3,385 | UT saves $675 |
| $200,000 | $0 | $7,558 | $8,158 | $4,635 | UT saves $600 |
Single filers using standard deductions. Utah tax after $878 personal exemption credit. Colorado applies 4.40% to taxable income after the federal standard deduction. Arizona applies 2.5% to taxable income.
Utah employers withhold four main items from a paycheck: federal income tax, Utah state income tax, Social Security (6.2%), and Medicare (1.45%). Utah has no state-level SDI, FLI, or other payroll taxes, unlike states like New Jersey or California. The Utah state withholding is calculated at 4.55% of taxable wages, but most workers see a lower effective rate because of the $878 personal exemption credit applied at year-end or adjusted through the TC-40 Utah Withholding Certificate.
Pre-tax deductions (traditional 401(k) contributions, health insurance, and FSA contributions) reduce your Utah taxable income dollar-for-dollar, the same way they reduce federal taxable income. A $400/month pre-tax health premium ($4,800/year) saves approximately $218 in Utah state tax. For contract or self-employed workers, there is no employer to withhold Utah tax, so estimated quarterly payments are required. The self-employment tax calculator can help estimate your quarterly obligations.
At $60,000, a single Utah filer keeps about $49,012 after all taxes, or $4,084 per month. Utah's $878 personal exemption credit reduces the effective state rate to about 2.0%, making Utah significantly cheaper than neighboring states on the state tax component alone. Federal income tax at $5,210 is the largest deduction.
| Annual Salary | Federal Tax | UT State Tax | Social Security | Medicare | Annual Take-Home | Monthly Take-Home |
|---|---|---|---|---|---|---|
| $45,000 | $3,410 | $505 | $2,790 | $653 | $37,642 | $3,137 |
| $60,000 | $5,210 | $1,188 | $3,720 | $870 | $49,012 | $4,084 |
| $75,000 | $8,203 | $1,870 | $4,650 | $1,088 | $59,189 | $4,932 |
| $100,000 | $13,703 | $3,008 | $6,200 | $1,450 | $75,639 | $6,303 |
| $125,000 | $19,344 | $4,145 | $7,750 | $1,813 | $91,948 | $7,662 |
Single filers, no pre-tax deductions. UT state tax = (taxable income x 4.55%) minus $878 credit. Taxable income uses the $14,600 federal standard deduction. Highlighted row is the $60,000 reference. Figures rounded to nearest dollar.
Utah's income tax rate was 5.00% in 2018. The legislature has cut it six times since then: 5.00% (2018), 4.95% (2019), 4.85% (2022), 4.65% (2023), 4.55% (2024 to present). Each cut has compounded. A $65,000 earner now pays $1,415 in Utah state tax compared to $2,600 under the 2018 5.00% rate, a difference of $1,185 per year, or about $99 per month.
Further cuts have been discussed in the Utah legislature, with proposals suggesting the rate could fall to 4.45% or lower. If enacted, a $65,000 earner would save an additional $65 per year. This trajectory distinguishes Utah from states like Colorado, which has held its 4.40% flat rate steady since 2022.
The rate cuts benefit all income levels proportionally because Utah uses a flat rate, but the absolute dollar savings grow with income. A $100,000 earner saved about $1,820 per year from the 2018 to 2024 rate change, compared to $1,185 for a $65,000 earner. If you are comparing relocation options in the West, use the Arizona paycheck calculatorto see how Arizona's 2.5% rate stacks up against Utah's current 4.55%.
Utah's $878 credit eliminates state income tax entirely at gross salaries below about $34,000. At $40,000, the Utah tax is only $278 for the full year ($23/month). Entering your 401(k) contribution pushes that threshold even higher.
In-depth guides related to this calculator.