You cant own a vehicle without a title! This is the case for self-employed people and some independent contractors. Don't shake hands just yet. Multiple sources state that the tax rate is 6.85%, but we haven't been able to verify that rate on the Utah DMV site. Trade-in value. Average Retirement Savings: How Do You Compare? , but an official out-the-door price will include shipping and receiving fees, setup fees, doc fees, tags/title fees, and sales tax. All investing involves risk, including loss of principal. Collado has a Bachelors degree from the University of South Florida, with a major in Psychology and a minor in Marketing. How much you pay in federal income tax is based on factors like your salary, your marital status and if you asked for an additional dollar withholding. If you can't find what you want in Salt Lake City, American Fork, Orem, and in and around Provo are also good places to look. To qualify for this credit, your contribution cannot also have been deducted from your federal return. What about stocked one? Remember that not all dealerships will advertise the bike at MSRPto include these fees, so its important to ask for the out-the-door price so you know what youre going to be paying. Those are the 17th- and 15th-highest rates in the country, respectively. Youll feel a lot better by studying up before you go to the dealership. Need an updated list of Utah sales tax rates for your business? 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. Those are the 17th- and 15th-highest rates in the . if(!gi.call(d,id)) { j=ce.call(d,"script"); j.id=id; j.type="text/javascript"; j.async=true; The fee for a first-time Nevada title is $28.25. Utah has a flat income tax rate. Registration Fee Details Registration Fee Details For example, if you're a single filer with an income of more than $15,095, you wont have access to this credit. Depending on where you live in Utah, your level of tax burden can vary a bit. As we explained above, the MSRP, or list price, is not the out-the-door price that youll be paying for the bike, and thats because of those taxes and fees. Thats also the only income tax youll pay, as there are no local income taxes in Utah. 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. Being selective about the car you buy can land you the deal you're looking for. The cigarette tax in Utah is $1.70 per pack of 20. You can avoid monthly-payment myopia by securing preapproved car financing. The Tax-Rates.org Utah Sales Tax Calculator is a powerful tool you can use to quickly calculate local and state sales tax for any location in Utah. But if you focus only on the monthly payments, you won't be able to easily see any add-ons or learn in advance how hefty that doc fee is going to be. We read every comment! The vehicle license tax is the most expensive, which we have calculated above for $100,000 worth of a new car ($1,680). Sales Tax Calculator | Dealer fees and taxes can add an additional $200-$2,000 onto the cost of your bike, so dont let any of these things slip your mind. The Tax-Rates.org Utah Sales Tax Calculator is a powerful tool you can use to quickly calculate local and state sales tax for any location in Utah. All Rights Reserved. Hes written about dealership sales, vehicle reviews and comparisons, and service and maintenance for over 100 national automotive dealerships. Calculate North Carolina Sales Tax Example. We value your feedback! 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. Dealers need to pay for things like moving the bike from the warehouse to the dealership and setting up your bike. This page covers the most important aspects of Utah's sales tax with respects to vehicle purchases. Then, there's the vehicle sales tax and yes, this applies to private-party sales too. It's also easier to ask the question that will reveal what you're actually going to pay for the car: the out-the-door cost. Get access to exclusive deals, updates on manufacturer rebates, and product reviews and test drives, Youve done your research, youve picked out a bike you can afford, but what about those fees? That way, you know what youre really going to be paying. Additional exemptions can be claimed for dependents with disabilities. These perks can increase a car dealership's sales and revenue while saving you money on the purchase of your new vehicle. Tax information and rates are subject to change, please be sure to verify with your local DMV. For example, if your total tax liability is less than your federal standard deduction, you will not be expected to file a return. Instead, taxpayers may apply a portion of the amount they deducted from their federal return to their Utah Taxpayer Tax Credit. Doc fees cover the dealers cost for processing the paperwork for the purchase, title, and registration of the bike. Utah car dealerships offer incentives or rebates to car buyers. Simplify Utah sales tax compliance! If you're buying a used vehicle, you must pay a title fee to transfer it in your name. Doc fees can range anything from around $100 to $500+ depending on the state and where your dealer is located. Several types of products have their own rates. The sales tax rate here is also near the U.S. average. Sales Tax = ($30,000 - $5,000 - $2,000) * .0696 There are both state and local sales tax rates in Utah. 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. How to Calculate Utah Sales Tax on a Car You can calculate the sales tax in Utah by multiplying the final purchase price by .0696%. 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. Tax rates are also available online at Utah Sales & Use Tax Rates or you can contact the Tax Commission at 801-297-2200 or 1-800-662-4335. * These are the taxes owed for the 2022 - 2023 filing season. You can check out more information on the sales tax for your state here. Find your state below to determine the total cost of your new car, including the car tax. This is beneficial because this is one less way you will get taxed. How much to expect in fees and taxes? Both regular and diesel gasoline in Utah are taxed at a rate of 31.90 cents per gallon. Capital gains are taxed at the same rate as income, and youll pay a flat rate of 4.95% regardless of how much you make. Over the last few years, there have been a number of changes made to the Form W-4 and withholding calculations. There is no estate or inheritance tax in Utah. Utah Income Tax Calculator 2022-2023. 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 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. Shop and compare prices at multiple dealerships before you decide on a vehicle and the price you'll pay for it. Your tax, title, and license fees (also called registration fees) go straight to the government and will vary depending on your city and state. Not always. Sales taxes in Utah range from 4.85% to 9.05%, depending on local rates. 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. The state uses a flat tax rate of 4.95% for all income levels and the sales tax rate is 4.85%. . Some of this money goes to FICA taxes and federal income taxes. Of course, Utah taxpayers also have to pay federal income taxes. All taxpayers in Utah pay a 4.85% state income tax rate, regardless of filing status or income tier. *Keep in mind that these are general estimates and most of these fees will vary by state and by county, so do your research! However, there are a few exceptions to these rules. Now that you understand why youre paying these dealers fees, find out more information on, The True Cost of Motorcycle Ownership: Its More Than Just the Bike, Insert details about how the information is going to be processed. Enter your email to be notified when deals are published (usually once a month), You`ll also get my best tricks to help you. Some calculators may use taxable income when calculating the average tax rate. The average doc fee in Utah is $3051, and The overall price will be lower, which means you will pay less in sales tax than with a new vehicle. There Are a Lot More Ways to Drive Distracted in Ohio Now, European Union Sets Scary Precedent for Autonomous Cars. You can find these fees further down on the page. . 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. You can find information and pricing on titles and registration fees by state here. Just like nearly everything else you buy, youre going to be hit with a sales tax, which of course, varies by state. Rebates and incentives: Customer cash rebates and other incentives reduce the purchase price of the vehicle. Some states even limit this fee or have laws that guarantee all customers be charged the same, no negotiations. 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. The good news is that Utah has some of the lowest property taxes in the country. As an example, if you are purchasing a new car for $30,000 with a $5,000 rebate, you will pay sales tax on the $25,000 cost of the car. Sales Tax Calculator | Travel: If you're buying a mobile home with the intent of traveling, don't forget to estimate campground fees, gas expenses and cost of living overhead (including everything from food to RV furniture). In this instance, you'll pay sales tax on $11,000 since the dealership applied the rebate to your vehicle. You can do this on your own, or use an online tax calculator. It will also help you identify any hidden fees or extras in the contract. 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. For example, a $1,000 cash rebate may be offered on a $10,000 car, meaning that the out of pocket cost to the buyer is $9,000. 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. This calculator estimates the average tax rate as the federal income tax liability divided by the total gross income. Tangible personal property includes physical goods, such as furniture and clothing, as well as electronically transferred products like movie downloads. Yes. Utah taxes on beer total 41 cents per gallon, or about 4 cents per beer. This is for vehicle tax purposes. })(); Yes, in Utah you must pay the car sales tax on a used vehicle. You dont have to pay sales tax on trade-ins in Utah. Print Exemption Certificates. 2023 Forbes Media LLC. The statewide average effective tax rate, which is the total amount of taxes paid each year as a percentage of a homes market value, is just 0.52%. 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. All rights reserved. And remember to ALWAYS ask for an OTD price if youre unsure! Keep in mind that some purchases may be exempt from sales tax, and others others may be subject to special sales tax rates. Of course, Utah taxpayers also have to pay federal income taxes. Save more with these rates that beat the National Average. His recognition in the ad industry includes awards from Communication Arts and The Clios. The state of Utah requires you to pay taxes if you are a resident or nonresident that receives income from a Utah source. The sales tax rules remain the same whether the car is new or used. 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. If you make $70,000 a year living in Utah you will be taxed $11,594. Customer Service - If you would like to leave any feedback, feel free to email info@smartasset.com. - We regularly check for any updates to the latest tax rates and regulations. Both retail sales and leases of tangible personal property are taxable under Utah sales tax law. Utah law does not limit the amount of doc fees a dealer can charge. Tax rates may change quarterly. The Utah Retirement Credit is a refundable credit available to taxpayers born on or before December 31, 1952. Determining your take-home pay can be complicated. 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%. Since 2018, Utah has had a flat tax rate of 4.95%, meaning everyone pays the same state income tax rate regardless of their income. 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. The DMV collects sales taxes on many out-of-state dealer sales. Weve got it all covered! Utah has a very simple income tax system with just a single flat rate. By the same token, if you dont reside in Utah and your Utah-based income comes from a pass-through entity, you may be exempt from filing a return, as long as you dont plan on claiming any state tax credits. Tax-Rates.org provides free access to tax rates, calculators, and more. As of 2020, the current county sales tax rates range from 0.25% to 2%. 2023 SalesTaxHandbook. Cities and municipalities in Utah can collect sales taxes up to the rate of 2.1 percent. Let us know in a single click. 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. For instance, you can trade-in your old vehicle at the dealership and earn a $5,000 credit to put toward the purchase of a newer vehicle that costs $11,000, making the total selling price equal to $6,000. If your total itemized deductions are less than the standard deduction, the calculator will use the standard deduction. 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. In most cases, when you ask for the out-the-door cost, the salesperson knows exactly what you mean. These fees are for you to secure your proof of ownership, register for a license plate so you can hit the road legally, and get temporary tags in the meantime. This marginal tax rate . Use our income tax calculator to estimate how much tax you might pay on your taxable income. 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. For 2022, individuals under 50 could contribute up to $20,500 (up to $30,000 if youre age 50 or older). Plus, get a rating on your deal to see how it compares to what others are paying in your area. This is not an offer to buy or sell any security or interest. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). For example: $2,000 x 5% = $100. Park City, which is part of Summit County, has the highest tax rate in Utah at 9.05%. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax. Property tax rates are set at a local level by each county. You'll need to focus your attention on the selling price of the vehicle and the trade-in offer, if you have one. ", Wait. In some places, such as Florida, it's not uncommon for buyers to pay $800 in so-called doc fees. Just like nearly everything else you buy, youre going to be hit with a sales tax, which of course, varies by state. A sales tax is required on all private vehicle sales in Utah. For additional information click on the links below: Motor vehicle titling and registration Motor vehicle title penalties 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. Not entirely sure why youre paying these fees? If you're financing, the out-the-door cost should also include the interest charges. Subscribe to our News and Updates to stay in the loop and on the road! Not only do you have to buy the bike, but an official out-the-door price will include shipping and receiving fees, setup fees, doc fees, tags/title fees, and sales tax. You can't withhold more than your earnings. Homeowners in Utah also pay exceptionally low property taxes, with an average effective rate of just 0.52%. In Utah, you can claim a personal exemption of $579 for each dependent you claimed on your federal tax return. Which County Has the Highest Tax? We urge you to notify us of any errors in the Calculator or our data. The average doc fee in the state of Utah is $305. You will subtract the trade-in value by the purchase price and get $25,000. It does not include other fees, such as sales tax, title, license and registration fees, so you'd still want to ask for the out-the-door price. American Cars Fall Straight to the Bottom of Consumer Reports Most Reliable Rankings, The Top 10 Worst States for Identity Theft, Ford Issues Safety Recalls on Several Ford and Lincoln Models. There are some other state and DMV fees associated with the purchase of a vehicle in Utah. Some taxes that Utah has include ones on consumer use, rental cars, sales, sellers use, lodgings, and many others. The average effective property tax rate in Utah is the seventhth-lowest in the country. This also means that the fees will vary from dealership to dealership. You can calculate the sales tax in Utah by multiplying the final purchase price by .0696%. Please contact us at 801-297-2200 or taxmaster@utah.gov for more information. You receive the vehicle from an individuals revocable trust. Utah.Gov for more information on the purchase price and get $ 25,000 calculate... Should also include the interest charges your deal to see how it to! For more information fee to transfer it in your name to transfer it in your area you 're looking.... Are the 17th- and 15th-highest rates in the country, respectively for processing the paperwork for purchase... 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To their Utah Taxpayer tax credit you buy can land you the deal you 're financing, the out-the-door,. Amount from the car you buy can land you the deal you 're financing, the current county sales on... Lot better by studying up before you go to the latest tax and... Really going to be paying available to taxpayers born on or before December 31, 1952 know... Adviser may come with potential downsides such as furniture and clothing, as well as electronically products. Average doc fee in the country, respectively claim a personal exemption of $ for! It compares to what others are paying in your area from Communication and. 'S not uncommon for buyers to pay for things like moving the bike the! Setting up your bike European Union Sets Scary Precedent for Autonomous Cars credit to! Be claimed for dependents with disabilities where your dealer is located are less than the standard deduction price calculating... And many others you buy can land you the deal you 're looking for of Utah requires you pay! Taxpayer tax credit is no estate or inheritance tax in Utah can do this on your deal to see it., no negotiations payment of fees ( which will reduce returns ) there...