Just over 3.1 million people live in Utah, across an area of 220,000 km². Among other things, Utah is known for the only Four Corners point in the USA, where its southeastern corner meets Colorado, New Mexico and Arizona. The capital of the "Beehive State" is Salt Lake City.
According to the latest Hachman Index, Utah has the most diverse economy in the country. It is also one of the fastest-growing economies. Business-friendly policies, long-term stability and sustainability all point to a promising business climate in Utah.
Companies benefit from the Beehive State's friendly regulatory environment. Quality of life is also very high, which attracts a highly skilled workforce. Plenty of companies, from Goldman Sachs to Stadler, value Utah as a location.
Utah is home to the "Best-Performing Cities"
The Milken Institute's "Best-Performing Cities" index tracks and ranks the economic performance of roughly 400 US Metropolitan Statistical Areas (MSAs). The index is built on a set of outcome-based metrics, including job creation, wage growth and high-tech GDP growth. Three of the top 10 metro areas are in Utah: Ogden-Clearfield (No. 9), Salt Lake City (No. 4) and Provo-Orem, which takes first place. Notably, all three have improved since 2020, some of them significantly. Among the Top Small Cities, St. George ranks fourth.
Industry experts would probably call Utah's approach to attracting businesses conservative. Unlike other states that offer big financial incentives to lure companies from elsewhere, Utah's business recruitment program is a tax credit granted after the fact.
Utah's performance-based tax rebate model supports companies that are ready to invest, create well-paid jobs and act as stewards of Utah's dynamic economy. Adobe, eBay, Amazon and P&G are among the big names doing business in Utah.
Top marks in higher education
Utah recently ranked second in the nation for higher education, thanks to the practical, innovative approaches developed at its institutions. Students and working people alike make use of the wealth of educational opportunities. With this range of programs, Utah wants to make sure businesses have enough highly skilled workers.
Utah's higher education system is open to businesses. Researchers and administrators welcome collaboration and help companies commercialize technologies and other projects. Entrepreneurial spirit is also very much alive on campus. The University of Utah, Brigham Young University and Utah State University are among the nation's top schools for launching startups based on university research.
Utah leads the nation in finding solutions to some of the biggest workforce challenges.
Income tax in Utah
Utah levies a flat income tax of 4.5% (tax year 2025; the rate has been cut several times recently, and in 2024 it was 4.55%). On top of that, you pay federal income tax.
Corporate tax in Utah
Utah levies a corporate tax of 4.5% (minimum tax $100). On top of that, you pay federal corporate tax.
Sales tax in Utah
The USA has no VAT on the European model. Instead, states, counties and municipalities levy a local sales tax on the sale of goods (but not services).
Sales tax rate in Utah
Utah's sales tax has a uniform statewide base of 6.1% (a state share of 4.7% plus local and county shares levied statewide). Depending on the location, further surcharges apply; in Salt Lake City the total is 8.45%.
Utah nexus laws & sales tax
Learn more about economic nexus laws and sales tax.
Effective date
January 1, 2019
Included transactions:
Gross revenue from sales of tangible personal property, electronically transferred products or services delivered into the state
Treatment of exempt sales:
Exempt sales and exempt services count toward the threshold
Trigger:
Sales only (the 200-transaction rule was repealed effective July 1, 2025)
Sales/transaction threshold:
$100,000; the 200-transaction threshold no longer applies as of July 1, 2025
Evaluation period:
The threshold applies to the previous or current calendar year
Additional information:
- Registration requirements: Utah has not specified how quickly a remote business must register once it crosses the economic nexus threshold. It could be as soon as the next transaction.
- Remote seller information
- SB 2001
Utah marketplace sellers & sales tax
Learn more about registration requirements for marketplace sellers
Effective date for marketplace facilitators:
October 1, 2019
Economic nexus threshold:
More than $100,000 in gross sales in the state in the current or previous calendar year (the 200-transaction threshold was repealed effective July 1, 2025). Remote sellers should exclude marketplace sales when calculating the threshold. Marketplace facilitators include all sales made through the marketplace when calculating the threshold.
Registration requirements:
- Remote multichannel sellers: Once you cross the economic nexus threshold, you must register with the Utah State Tax Commission and collect Utah sales tax on sales not taxed by a marketplace facilitator.
- Remote marketplace sellers: You must register once you cross the economic nexus threshold. Contact the Utah State Tax Commission for more information.
- In-state multichannel sellers: You must register with the Utah State Tax Commission and collect tax on sales not taxed by a marketplace facilitator.
- In-state marketplace sellers: You must register. Contact the Utah State Tax Commission for more information.
- Learn more here.
For a look at every state, see our overview of the US states. Whether Utah or another state is the right home for your US company is covered in the guide Which US state is best for your company?, and you will find the basics in our guide to forming a company in the USA.
Our services for Utah:
From choosing the right entity to getting your EIN: everything a US company formation involves is under US Company Formation. We will map out your path to Utah together in a consultation.