Retiring in Utah: how your income is taxed
Utah is less tax-friendly for retirees. On a typical retirement income it ranks #47 of 51 for the lowest state income tax.
The rules in Utah
- Social Security: Taxable benefits are included in Utah income (taxed at the flat 4.45% rate for 2026), but a nonrefundable credit cancels the tax on them when modified AGI is $54,000 or less (single), $90,000 or less (joint or head of household) or $45,000 or less (married filing separately). Above those amounts the credit shrinks by 2.5 cents for each $1 of income. It can't be combined with the retirement credit.
- Pensions: Pensions are taxed at Utah's flat rate, but people born on or before December 31, 1952 can claim a retirement credit of up to $450 per person ($900 joint), phasing out by 2.5 cents per $1 of modified AGI above $25,000 (single) or $32,000 (joint). It can't be combined with the Social Security credit, so most newer retirees get no pension break. Public and private pensions are treated alike.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed at Utah's flat rate, but the same $450 retirement credit (born in 1952 or earlier, low incomes only) can offset some of the tax. It is a credit, not an exclusion.
- At 65 and older: At 65 the federal standard deduction is larger, which raises Utah's taxpayer credit (6% of that deduction) before its income phase-out.
Calculate your Utah retirement taxes
State income tax in Utah: $1,474 a year
In Utah, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In Utah you'd pay about $1,474 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $64,190 (8.3% total).
Utah ranks #47 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Utah
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $1,474 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $5,963 | $4,688 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply Utah's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to Utah in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to Utah come from (IRS migration data, 2022–2023).
Frequently asked questions
Does Utah tax Social Security?
Partly taxed. Taxable benefits are included in Utah income (taxed at the flat 4.45% rate for 2026), but a nonrefundable credit cancels the tax on them when modified AGI is $54,000 or less (single), $90,000 or less (joint or head of household) or $45,000 or less (married filing separately). Above those amounts the credit shrinks by 2.5 cents for each $1 of income. It can't be combined with the retirement credit.
Does Utah tax pensions?
Partly taxed. Pensions are taxed at Utah's flat rate, but people born on or before December 31, 1952 can claim a retirement credit of up to $450 per person ($900 joint), phasing out by 2.5 cents per $1 of modified AGI above $25,000 (single) or $32,000 (joint). It can't be combined with the Social Security credit, so most newer retirees get no pension break. Public and private pensions are treated alike.
Does Utah tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals are taxed at Utah's flat rate, but the same $450 retirement credit (born in 1952 or earlier, low incomes only) can offset some of the tax. It is a credit, not an exclusion.
Is Utah a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, Utah charges about $1,474 in state income tax, ranking #47 of 51 (lowest tax first).
Related
Sources: le.utah.gov, incometax.utah.gov, incometax.utah.gov (2), le.utah.gov (2), aarp.org. Rules reviewed . Some 2026 amounts were not yet published or sources differed; confirm with the state revenue department.