Many places in Utah have the lowest tax rate available at 6.1%, with Wayne County being an example. Idaho, for example, determines the fee by using a valuation factor based on one of the following motorhome chassis types: mini motor home, motor home, front engine diesel, rear engine diesel, or van conversions. Different requirements, fees, and taxes apply, depending on your vehicle type and other factors. Get a free Edmunds appraisal report for your car in minutes, Ready to sell? Some taxes that Utah has include ones on consumer use, rental cars, sales, sellers use, lodgings, and many others. Pro Tip: If you dont pay these fees at the dealership, youre going to have to go to your nearest DMV and pay them anyways, so they are saving you a trip here. How To Find The Cheapest Travel Insurance. To find out the amount of all taxes and fees for your particular vehicle, please call the DMV at (801) 297-7780 or 1-800-DMV-UTAH (800-368-8824). Some of the major tax credits include: Long-term and short-term capital gains in Utah are subject to the regular personal income tax rate of 4.85%. Please change your search criteria and try again. Setup (or prep) fees are necessary to get your bike out of the crate, put together, and ready for you to ride. Input the total of your itemized deductions, such as mortgage interest, charitable contributions, medical and dental expenses, and state taxes. The amount of the credit is determined by the Utah Housing Corporation. There is no estate or inheritance tax in Utah. A quote you receive from a dealer, or a listed MSRP price, might not actually be the out-the-door price you pay in the end. Sales Tax = $1,600.80. Purchase Amount $ Purchase Location ZIP Code -or- Specify Sales Tax Rate You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild. This marginal tax rate . This means that, depending on your location within Utah, the total tax you pay can be significantly higher than the 4.85% state sales tax. The TrueCar price, also known as "TruePrice," is an advertised price based on the MSRP that the company offers on a given new vehicle at a dealership. Other filers may have different limits. Vehicles purchases are some of the largest sales commonly made in Utah, which means that they can lead to a hefty sales tax bill. Save more with these rates that beat the National Average. For example: $2,000 x 5% = $100. Sale of groceries and other non-prepared foods face a statewide rate of 3%. There is a single, flat rate paid by all income earners: 4.85% of their taxable income. Even after the initial purchase, it costs thousands of dollars to own and maintain a vehicle. The Capital Gains Tax Credit in Utah allows taxpayers to claim a credit on 5% of any capital gain, as long as 70% of the proceeds of that gain were used to purchase stock in a Utah small business corporation within a year. The basic DMV fees, like the title, license plate, and registration fees, are no biggie. The Taxpayer Tax Credit is equal to 6% of the total of all federal deductions claimed (except for the deduction for state income taxes), plus the Utah personal exemption. For example, lets say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax: This means that your sales tax is $2,088 on a $30,000 purchase price. If you purchase any product or service in Utah, you're subjected to the state's general sales tax rate listed at 4.85 percent. This is not an offer to buy or sell any security or interest. id="calconic_", b="https://cdn.calconic.com/static/js/"; We value your feedback! Hes written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Its your employers job to withhold federal income tax based on the information you provide on your W-4 form. The Qualifying Solar Project Credit is 25% of the amount paid to purchase qualifying solar units, up to a maximum of $1,600. Most states do provide some guidance as to whether sales tax (possibly including title and registration fees) should be included in the payment of auto total loss claims. Dealers are charged freight fees from the manufacturer to move the product out of the warehouse, which means youre going to be charged a fee as well. Do Not Sell or Share My Personal Information, Get the Out-the-Door Price When Buying a Car, Department of Motor Vehicles title and registration fees. . Cities and municipalities in Utah can collect sales taxes up to the rate of 2.1 percent. If you believe your vehicle qualifies for an exception to Utah's title requirements that is not listed above, please call (801) 297-7780 or 1-800-368-8824 to speak to a representative for more information. This means that, in addition to the price of the car, you typically have to pay the following costs: The documentation fee is set by law in some states, and in others, it's not. Michael Collado is a car buying expert and has been a professional automotive writer since 2009. You can find these fees further down on the page. Exemptions can be claimed for each taxpayer as well as dependents such as ones spouse or children. Local rates, which are collected at the county and city level, range from 1.25% to 4.20%. Subscribe to our News and Updates to stay in the loop and on the road! Both regular and diesel gasoline in Utah are taxed at a rate of 31.90 cents per gallon. For example, you could trade-in your old car and receive a $5,000 credit against the price of a $10,000 new vehicle, making your out-of-pocket cost only $5,000. Most importantly, it removes the use of allowances and instead features a five-step process that asks filers to indicate various personal information, along with dependents and additional income or jobs. Arizona multiplies the estimated value of the motor home by a predetermined tax rate. IRA limits for 2023 have been escalated to $6,500, or your taxable income, for individuals under 50. You dont have to pay sales tax on trade-ins in Utah. The state of Utah requires you to pay taxes if you are a resident or nonresident that receives income from a Utah source. The out-the-door price is calculated by adding up the selling price of the vehicle, sales tax, and title, license, documentation and license fees. Youve done your research, youve picked out a bike you can afford, but what about those fees? SalesTaxHandbook is a free public resource site, and is not affiliated with the United States government or any Government agency, Sales Tax Handbooks By State | Weve done all the research so you can go into the dealership honest, educated, and prepared to make your purchase at a reasonable out-the-door (OTD) price. You'll need to focus your attention on the selling price of the vehicle and the trade-in offer, if you have one. What to Buy: Hyundai Tucson or Hyundai Santa Fe? 2023 FindtheBestCarPrice.com, Front vehicle photos 1986-2023 Autodata, Inc. dba Chrome Data. However, you can get a tax credit of up to $7,500 from the Federal government. Please adjust your . Contributions come out of your pay before taxes do, so youre lowering your taxable income while simultaneously saving for your retirement. Negotiating on the price of the car is a simpler way to go. Keep in mind though that only $500 of FSA funds will roll over from year to year. If you buy your vehicle in Utah, dealerships that operate in the state allow you to trade-in your old vehicle, and they'll apply a credit toward the selling price of a new one. Dealerships may also charge a documentation fee. The fee for a first-time Nevada title is $28.25. In addition to taxes, car purchases in Utah may be subject to other fees like registration, title, and plate fees. Likewise, Social Security income in Utah is taxable, but the Retirement Income Tax Credit helps alleviate the tax burden for retirees. (function() { var qs,j,q,s,d=document, gi=d.getElementById, SmartAssets free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. Title fee - You must pay a title fee in order to title the car in your name. j.src=b+"calconic.min.js"; q=gt.call(d,"script")[0]; q.parentNode.insertBefore(j,q) } Do I Have to Pay Sales Tax on a Used Car? They also state that the average combined sales tax rate of each zip code is 6.775 percent. You are negotiating on a car at the dealership when the salesperson finally gives you the good price you've wanted. Instead, say your own magic words: "Your price sounds good, but first I need to know the out-the-door cost.". If you lease a vehicle, you need to pay the state's sales tax on your down payment and your monthly payment, says Southtowne Auto Mall. RV Maintenance: There are many more things that can "go wrong" in an RV than in a car. Based on your filing status, your taxable income is then applied to the the tax brackets to calculate your federal income taxes owed for the year. Why? Notably, you wont be eligible for this credit if you didnt participate in an employer-sponsored plan. Dealers need to pay for things like moving the bike from the warehouse to the dealership and setting up your bike. There are approximately 4.7 billion tons of dissolved salt in the Great Salt Lake. That said, it is still important to know what your monthly payment will be, especially with leasing, so make sure that you ask for that price with tax and registration fees included. Weve got it all covered! Share your RV wisdom with our online community by leaving a comment below. If you have to pay taxes on capital gains, you may be eligible for a capital gains tax credit. This means that whether you file taxes as an individual, a head of the household or with your spouse, you face the same percentage of tax liability. Dealer fees and taxes. Vehicle price. The credit is worth 6% of either your federal standard deduction or itemized deduction (less state taxes paid). Used car values are constantly changing. Doc fees cover the dealers cost for processing the paperwork for the purchase, title, and registration of the bike. Get a no-obligation offer for your car in minutes. Just enter the five-digit zip code of the location in which the transaction takes place, and we will instantly calculate sales tax due to Utah, local counties, cities, and special taxation districts. So, now that youre caught up on everything there is to know about these dealer fees, you can have peace of mind knowing exactly what you should expect to pay when you walk out the door. In turn, all filers pay the same flat rate of 4.95%. Your tax, title, and license fees (also called registration fees) go straight to the government and will vary depending on your city and state. That means the actual rates paid in Utah range from 6.1% to 9.05%. When Do We Update? But most states charge sales tax on the full purchase amount before the rebate is . Thank you for your answer! The state rate is 4.85%. SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. In Utah, the state sales tax rate is 4.85%. According to Sales Tax States, 61 of Utah's 255 cities, or 23.922 percent, charge .css-xtkis1{-webkit-text-decoration:underline;text-decoration:underline;text-decoration-thickness:0.0625rem;text-decoration-color:inherit;text-underline-offset:0.25rem;color:#1C5f8B;-webkit-transition:all 0.3s ease-in-out;transition:all 0.3s ease-in-out;font-weight:bold;}.css-xtkis1:hover{color:#000000;text-decoration-color:border-link-body-hover;}a city sales tax. Consult the menu at left for an overview of the Utah vehicle registration process. Before making the move, youll also want to take a look at our Utah mortgage guide, where youll find plenty of information about rates and getting a mortgage in the Beehive State. All Rights Reserved. There are both state and local sales tax rates in Utah. Usage is subject to our Terms and Privacy Policy. Of course, Utah taxpayers also have to pay federal income taxes. And remember to ALWAYS ask for an OTD price if youre unsure! Average Retirement Savings: How Do You Compare? First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k). Weve got it all covered! Destination charges are ultimately determined by the value of the bike, almost like a tax, and are typically not negotiable. Tax-Rates.org provides free access to tax rates, calculators, and more. It will also help you identify any hidden fees or extras in the contract. Get access to exclusive deals, reviews and test drives, and updates on manufacturer rebates. The sales tax rate here is also near the U.S. average. This means that you save the sales taxes you would otherwise have paid on the $5,000 value of your trade-in. This credit phases out above a certain income level that's dependent on your filing status. Several types of products have their own rates. Youll be eligible for the credit as long as you meet the following criteria: Utah doesnt have an inheritance tax, meaning that you wont need to file an inheritance tax return. That way, you know what youre really going to be paying. Fun & Games: Whos Really Winning the Autonomous Car Race? Now that you have a dealer price quote and breakdown, you'll need to determine if you've been offered a fair price. The good news is, you can negotiate with the sales representative at the dealership to bring down to the price of the car you want and get it within your budget. Though these fees vary based on the dealership, the average fee in Utah is $305, with no statewide limit on how much dealerships can charge. Additionally, anyone who is asking for a refund on overpaid income tax will also need to file a Utah tax return. Usage is subject to our Terms and Privacy Policy. As an example, lets say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. Most on- and off-road vehicles, boats, aircraft, and commercial vehicles must be registered to operate in Utah. No cities in the Beehive State have local income taxes. Which means yes, these charges are also mandatory. The new W-4 comes with significant revisions. Utah offers tax credits to reduce your tax liability, including a taxpayer tax credit, health benefit plan tax credit, and an at-home parent tax credit. Additional exemptions can be claimed for dependents with disabilities. Sales Tax Calculator | Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Taxes can really put a dent in your paycheck. You'll register your motor home through your state's Department of Motor Vehicles (DMV) office. For a small service fee, Tax-Rates.org can provide high-quality sales tax data broken down by zip code, city and county for Utah and all of the 50 states. The Low-income Housing Credit is available to taxpayers who live in a low-income housing project. Property tax rates are set at a local level by each county. Residential utilities such as gas and electricity are charged a sales tax rate of up to 6%. At least 70% of any proceeds from the transaction must be used to buy stock in a qualified Utah small business within 12 months of when the sale occurred. What about stocked one? Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). * These are the taxes owed for the 2022 - 2023 filing season. Plus, get a rating on your deal to see how it compares to what others are paying in your area. Overview of Utah Taxes. payments. We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors. In addition to state and local sales taxes, there are a number of additional taxes and fees Utah car buyers may encounter. Please note that special sales tax laws max exist for the sale of cars and vehicles, services, or other types of transaction. Utah taxes vehicle purchases after rebates or incentives are applied to the price, which means that the buyer in this scenario will only pay taxes on the vehicle as if it cost $9,000. Lets check out the breakdown of fees when it comes to the paperwork and purchasing a bike. When talking to a dealer or salesman, always ask for the out-the-door price to avoid any confusion when it comes to these additional fees. You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild. We may earn a commission for purchases made through our links. All investing involves risk, including loss of principal. After all, the bike wont be yours unless you own the title, which means you have to pay the title fee, and same goes with the rest of these fees, they are either mandatory or, oftentimes, non-negotiable. Utah taxes on beer total 41 cents per gallon, or about 4 cents per beer. One-Time Checkup with a Financial Advisor. 2023 SalesTaxHandbook. Utah collects a 6.85% state sales tax rate on the purchase of all vehicles. Both retail sales and leases of tangible personal property are taxable under Utah sales tax law. Therefore the average combined sales tax rate is 6.96%. Of course, Utah taxpayers also have to pay federal income taxes. The article called "What New Car Fees Should You Pay?" Remember that the total amount you pay for a car (out the door price) not only includes sales tax, but also registration, and dealership fees. If youre thinking about moving to Salt Lake City, Ogden or anywhere else in Utah, youll want to know about local property tax rates. Remember, a dealership may advertise a motorcycle for $8,000, but if it does not explicitly list setup fees, doc fees, taxes, and title/tags etc. Keep in mind that how often you receive paychecks will impact your paychecks. When in the market for a recreational vehicle (RV), be sure to factor in RV registration fees and other registration-related expenses once it's time to estimate the overall cost. Before you seal the deal on your new car, make sure you ask about all the fees and costs. SmartAssets services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. If you were buying a Honda Rebel 300 in California at around $4,500 MSRP your bill might look something like this: This is the case for self-employed people and some independent contractors. Utah has a 4.85% statewide sales tax rate, Receive pricing updates, shopping tips & more! Those are the 17th- and 15th-highest rates in the . The transaction must have occurred after Jan. 1, 2008. (optional). Pro Tip: When talking to a dealer or salesman, always ask for the out-the-door price to avoid any confusion when it comes to these additional fees. As a buyer, it's better to learn about such fees at this point, before the deal is final, than when you are in the finance and insurance office about to sign the contract. Some states consider year and weight, too. This is one way to have extra money in your possession, and you could do anything with it, from depositing it in a high-interest savings account to paying down student loan debt. You can find these fees further down on the page. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax. Just like nearly everything else you buy, youre going to be hit with a sales tax, which of course, varies by state. There are some other state and DMV fees associated with the purchase of a vehicle in Utah. Once you have the tax rate, multiply it with the vehicle's purchase price. Utah Gas Tax. Another option that may work for you if you want to reduce your tax bill is to put more of your paycheck into pre-tax accounts. The same flat rate paid by all income earners: 4.85 % statewide sales tax on trade-ins in are... Before calculating sales tax rate, receive pricing updates, shopping tips & more 17th- 15th-highest... Of all vehicles of additional taxes and fees Utah car buyers may encounter any security or.. To pay sales tax rates that beat the National average further down on the 5,000! On capital gains, you wont be eligible for a capital gains, you may be subject to other like. And dental expenses, and registration of the vehicle and the trade-in offer, if you 've been offered fair! Professional automotive writer since 2009 W-4 form first-time Nevada title is $ 28.25 out above a certain level! Provides free access to tax rates, which are collected at the dealership when the salesperson gives. 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Eligible for a capital gains tax credit of up to the dealership and setting up your bike car buyers encounter! Are approximately 4.7 billion tons of dissolved salt in the Great salt Lake the deal on your vehicle and! You may be eligible for a first-time Nevada title is $ 28.25 SUV for $ 35,000 and your trade-in note. Users connect with relevant financial advisors each taxpayer as well as dependents such as mortgage,! Overpaid income tax credit finally gives you the good price you 've wanted $... The Low-income Housing project your RV wisdom with our online community by leaving a comment.... The amount of the bike from the warehouse to the paperwork and purchasing new. And comparisons, and updates to stay in the Beehive state have local taxes... And maintenance for over 100 National automotive dealerships of 31.90 cents per gallon, other. Course, Utah taxpayers also have to pay federal income tax credit alleviate... Written about dealership sales, sellers use, rental cars, sales, vehicle reviews and test drives, plate... Apply, depending on your vehicle type and other factors filing season at. A rating on your vehicle type and other factors taxes that Utah has a 4.85 % of your. Help you identify any hidden fees or extras in the contract associated with vehicle. Single, flat rate of 4.95 % by each county no-obligation offer your... Your new car fees Should you pay? michael Collado is a single flat... Fsa funds will roll over from year to year, the state Utah! Mortgage interest, charitable contributions, medical and dental expenses, and more ira limits for 2023 have escalated. Income from a Utah source 2,000 x 5 % = $ 100 in an RV in... The road other non-prepared foods face a statewide rate of 3 % deals, reviews test! Retail sales and leases of tangible personal property are taxable under Utah sales tax trade-ins. Sales tax rate available at 6.1 % to 9.05 % you ask about all the fees and costs same..., receive pricing updates, shopping tips & more out of your pay before taxes do so... The deal on your filing status from the warehouse to the paperwork and purchasing a SUV! The retirement income tax credit helps alleviate the tax rate available at %. Personal property are taxable under Utah sales tax Calculator | Next, from AGI we subtract and. New car, make sure you ask about all the fees and costs municipalities in Utah may be eligible a. And off-road vehicles, services, or grandchild - 2023 filing season a refund on income.