Social Security benefits in Utah
Varies
Is Social Security Taxed in Utah?
Short answer: Partly. Utah taxes federally taxable Social Security but offers a nonrefundable credit equal to the flat tax rate times that amount. The credit shrinks by 2.5 cents per dollar of modified AGI above $54,000 (single), $90,000 (joint or head of household) or $45,000 (married filing separately). These thresholds were set by SB 71 for tax year 2025 and are not indexed. A 2026 bill to change them (HB 210) failed, so they are assumed to apply for 2026; the 2026 TC-40 instructions were not yet available to confirm. The credit cannot be combined with Utah's $450 retirement credit.
Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Social Security benefits in Utah
Varies
Individuals / Personal Taxes
Partly. Utah taxes federally taxable Social Security but offers a nonrefundable credit equal to the flat tax rate times that amount. The credit shrinks by 2.5 cents per dollar of modified AGI above $54,000 (single), $90,000 (joint or head of household) or $45,000 (married filing separately). These thresholds were set by SB 71 for tax year 2025 and are not indexed. A 2026 bill to change them (HB 210) failed, so they are assumed to apply for 2026; the 2026 TC-40 instructions were not yet available to confirm. The credit cannot be combined with Utah's $450 retirement credit.
Business justification
Partly. Utah taxes federally taxable Social Security but offers a nonrefundable credit equal to the flat tax rate times that amount. The credit shrinks by 2.5 cents per dollar of modified AGI above $54,000 (single), $90,000 (joint or head of household) or $45,000 (married filing separately). These thresholds were set by SB 71 for tax year 2025 and are not indexed. A 2026 bill to change them (HB 210) failed, so they are assumed to apply for 2026; the 2026 TC-40 instructions were not yet available to confirm. The credit cannot be combined with Utah's $450 retirement credit. Federally, up to 85% of benefits can be taxable depending on your combined income (IRS Pub 915); that part doesn't change by state.
Category
- Personal Tax Deductions