Selling investments in Utah: federal and state capital gains
How federal and Utah state taxes apply to capital gains, with a worked example.
Key facts
| Place | Utah |
|---|---|
| Sales tax | State sales tax |
| Standard rate on file | 6.1% |
| Multiply net price by | 1.061 |
| Tax share of a gross price | 5.75% |
| Currency | USD |
Federal treatment
Long-term gains on assets held more than a year are taxed at 0%, 15% or 20% federally depending on income, plus a possible 3.8% net investment income tax. Short-term gains are taxed as ordinary income.
Worked example
Here is the calculation with sample figures. Change any number in the Utah Capital Gains Tax Calculator to run your own.
| Purchase price | $25,000.00 |
| Sale price | $37,500.00 |
| Costs and fees | $500.00 |
| Tax rate (%) | 20% |
| Taxable gain | $12,000.00 |
|---|---|
| Tax | $2,400.00 |
| Net amount | $34,600.00 |
State treatment
Most states tax capital gains as regular income. Check whether Utah offers any exclusion; the calculator lets you combine federal and state rates into one figure.
Quick reference at 6.1%
Common amounts in Utah, worked both ways: adding tax to a net price, and extracting it from a price that already includes tax.
| Amount | Tax on net amount | Gross (net + tax) | Net if amount includes tax |
|---|---|---|---|
| $10.00 | $0.61 | $10.61 | $9.43 |
| $50.00 | $3.05 | $53.05 | $47.13 |
| $100.00 | $6.10 | $106.10 | $94.25 |
| $250.00 | $15.25 | $265.25 | $235.63 |
| $500.00 | $30.50 | $530.50 | $471.25 |
| $1,000.00 | $61.00 | $1,061.00 | $942.51 |
| $5,000.00 | $305.00 | $5,305.00 | $4,712.54 |
How Utah compares
Standard rates on file for other states. A difference of a few points matters most on high-value purchases and on cross-border sales.
| Place | Rate on file | Compared with 6.1% |
|---|---|---|
| South Dakota | 4.2% | lower |
| Tennessee | 7% | higher |
| Texas | 6.25% | higher |
| Vermont | 6% | lower |
| Virginia | 5.3% | lower |
| Washington | 6.5% | higher |
Using the calculator step by step
- Open the Utah Capital Gains Tax Calculator.
- Type your figures into the numbered lines. Results update as you type.
- Check the rate field. It starts at 6.1%; change it if a reduced rate, local surcharge or exemption applies to you.
- Read the result on the receipt panel, and use the formula shown under it if you need to explain the figure to a client or colleague.
Key terms
- Taxable income
- Income left after allowances and deductions, on which the tax rates are applied.
- Zero rate
- A rate of 0% on a taxable supply. Unlike an exemption, the seller can usually still reclaim tax on costs.
- Tax credit
- An amount subtracted directly from the tax bill, worth its full face value.
- Standard rate
- The rate that applies to most goods and services unless a specific reduced rate, zero rate or exemption applies.
- Effective rate
- Total tax divided by total income, the average rate you actually pay.
Common mistakes to avoid
- Treating short-term gains as long-term.
- Forgetting state tax on gains.
Run your own numbers. The Utah Capital Gains Tax Calculator updates as you type and shows the formula it uses.
Frequently asked questions
What is the federal long-term capital gains rate?
0%, 15% or 20% depending on taxable income, plus possibly 3.8% NIIT.
Does Utah tax capital gains?
Many states do as ordinary income; confirm current Utah rules.
This article is general information for planning, not tax advice. Rates and rules change; confirm with your tax authority or a qualified adviser.