Utah: Sales Tax Handbook
What purchases are exempt from the Utah sales tax?
While the Utah sales tax of 4.85% applies to most transactions, there are certain items that may be exempt from taxation. This page discusses various sales tax exemptions in Utah.
Sales Tax Exemptions in Utah
In Utah, certain items may be exempt from the sales tax to all consumers, not just tax-exempt purchasers.
Several examples of items which are considered to be exempt from Utah sales tax are prescription medications, items which are used in agricultural processes, fuels, medical equipment, or items used in manufacturing.
Many states have special, lowered sales tax rates for certain types of staple goods - such as groceries, clothing and medicines. Restaurant meals may also have a special sales tax rate. Here are the special category rates for Utah:
These categories may have some further qualifications before the special rate applies, such as a price cap on clothing items. Groceries are generally defined as "unprepared food", while pre-prepared food may be subject to the restaurant food tax rate.
Candy and soda may be included or excluded from any preferential tax rate depending on whether or not the state considers them to be a "grocery":
Are services, shipping, installation, etc taxable in Utah?
The taxability of transactions involving services, shipping, and installation of tangible goods can be slightly complicated with various laws applying to slightly different situations. To learn more about how these transactions, and other more complicated situations, are subject to the Utah sales tax see the Utah sales taxability FAQ page.
Other tax-exempt items in Utah
This table lists a number of additional categories of goods and services that are exempt from Utah's sales tax. For a list that also shows taxable items, see the list of taxable and nontaxable items in Utah.
|Manufacturing and Machinery|
|Utilities & Fuel||EXEMPT|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|Newspapers and Magazines|
|General Occasional Sales||EXEMPT *|
|Optional Maintenance Contracts|
|Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts||EXEMPT|
|Janitorial Services||EXEMPT *|
|Software and Digital Products|
|Custom Software - Delivered on Tangible Media||EXEMPT|
|Custom Software - Downloaded||EXEMPT|
* See notes in category taxability page for details
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