Utah (UT) Car Sales Tax & Fees [+ Calculator]

Utah Car Sales Tax

Sales tax and other fees are often forgotten about in the excitement of making a new car purchase. But in Utah, you’ll need to be prepared to spend additional money on these extra costs.

Utah's state sales tax rate is 4.85% of the vehicle's purchase price. But, local municipalities can also collect up to 2.11% sales tax.

So, the average vehicle sales tax in Utah is 6.96%. 

Here’s what to expect when it comes to taxes and fees in the state of Utah.

Key Takeaways

  • The base state sales tax in Utah is 4.85%, but local counties can add up to 2.11%, making the average combined sales tax rate approximately 6.96%.
  • Car sales tax in Utah can range from 6.1% to 9.05%.
  • Car buyers in Utah should also account for various DMV/state fees and dealership fees (the average dealership fee is $305).
  • Utah offers sales tax exemptions for vehicles received as gifts from close relatives, inherited vehicles, or those transferred in a divorce or to a disabled veteran.

How Much Is the Car Sales Tax in Utah?

How Much Is Utah Car Sales TaxFinding the sales tax rate for car purchases in Utah can get confusing. 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.

We found that the base state sales tax in Utah is 4.85%, but on average, local counties add up to 2.11%. Therefore the average combined sales tax rate is 6.96%.

For our examples in this article, we'll use the average combined rate of 6.96%. But know that the lowest rate in Utah is 6.1% and the highest is 9.05%.

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%.

For example, let’s say that you want to purchase a new car for $30,000, you would use the following formula to calculate the sales tax:

$30,000 x .0696 = $2,088

This means that your sales tax is $2,088 on a $30,000 purchase price.

Calculate Car Sales Tax in Utah Example:

  • Initial Car Price: $30,000
  • Sales Tax Rate: 6.96%
  • Trade-In Amount: $5,000
  • Manufacturer/Dealer Rebate: $2,000

Sales Tax = ($30,000 - $5,000 - $2,000) * .0696
Sales Tax = $1,600.80

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.

Utah (UT) Car Sales Tax Calculator

Do I Have to Pay Sales Tax on a Used Car?

Yes, in Utah you must pay the car sales tax on a used vehicle. The sales tax rules remain the same whether the car is new or used.

Still, purchasing a used car is a wise choice for many. The overall price will be lower, which means you will pay less in sales tax than with a new vehicle.

Utah Highest and Lowest TaxWhich County Has the Highest Tax? Which Has the Lowest?

Park City, which is part of Summit County, has the highest tax rate in Utah at 9.05%.

Many places in Utah have the lowest tax rate available at 6.1%, with Wayne County being an example.

Car Sales Tax for Trade-Ins in Utah

Trade in UtahYou don’t have to pay sales tax on trade-ins in Utah. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.

As an example, let’s say you are purchasing a new SUV for $35,000 and your trade-in is worth $10,000. You will subtract the trade-in value by the purchase price and get $25,000. Therefore, your car sales tax will be based on the $25,000 amount.

Car Sales Tax on Private Sales in Utah

A sales tax is required on all private vehicle sales in Utah. Calculate the sales tax based on the purchase price, or the fair market value (whichever is higher).

Sales Tax on Rebates & Dealer Incentives

Dealer Incentive Tax Utah

You don't have to pay tax on dealer and manufacturer rebates in Utah. In other words, be sure to subtract the rebate/incentive amount from the car price before calculating sales tax.

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.

Other Fees For Buying a Car in Utah

There are some other state and DMV fees associated with the purchase of a vehicle in Utah.

A few of these fees include:

  • Registration Fee: $44
  • Title Fee: $6
  • Plate Transfer Fee: $6
  • Uniform fee: $150 (depending on vehicle class)
  • Annual automobile education fee: $2.50/year
  • Annual uninsured motorist identification fee: $1.00/year

Utah Dealership Fees

Dealerships apply extra fees, sometimes referred to as “doc fees,” with the sale of the car.

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.

When Sales Tax Is Exempt in Utah

Utah Tax Exemptions

Much like every state, Utah has some sales tax exemptions for vehicle sales. Exemptions include:

  • You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
  • If you inherited the vehicle.
  • You receive the vehicle in a divorce.
  • You are a disabled veteran.
  • You receive the vehicle from an individual’s revocable trust.

Utah EV Rebates & Incentives

Utah does not offer incentives on EV vehicle purchases, but there are some charging-related incentives. However, you can get a tax credit of up to $7,500 from the Federal government.

Conclusion

Always assess the sales tax and other fees before buying a car in Utah. The base car sales tax in Utah appears to be 4.85%, but local municipalities can also charge sales tax. On average, vehicle sales tax in Utah is 6.96%, but it can range from 6.1% to 9.05%.

Use the calculator above to estimate sales tax and other fees on your car purchase.

Looking for the car sales tax in another state? Check out our comprehensive guide on car sales tax in each state!

 

 

Tax information and rates are subject to change, please be sure to verify with your local DMV. 

Frequently Asked Questions

What is the sales tax on a car purchased in Utah?

We found that the base state sales tax in Utah is 4.85%, but on average, local counties add up to 2.11%. Therefore the average combined sales tax rate is 6.96%.

Do I have to pay sales tax on a used car in Utah?

Yes, in Utah you must pay the car sales tax on a used vehicle. The sales tax rules remain the same whether the car is new or used.

Which county in Utah has the lowest tax? Which has the highest?

Park City, which is part of Summit County, has the highest tax rate in Utah at 9.05%. Many places in Utah have the lowest tax rate available at 6.1%, with Wayne County being an example.

Do I have to pay sales tax on a gifted car in Utah?

You do not have to pay sales tax if the vehicle is gifted to you from a spouse, parent, child, grandparent, or grandchild.

Does a trade-in reduce sales tax in Utah?

Yes, you don’t have to pay sales tax on trade-ins in Utah. In other words, be sure to subtract the trade-in amount from the car price before calculating sales tax.

How can I avoid paying sales tax in Utah?

The following events are not taxable when it comes to vehicle transfers:

  • If you inherited the vehicle.
  • You receive the vehicle from an individual’s revocable trust.
  • You are a disabled veteran.
  • You receive the vehicle as a gift from a spouse, parent, child, grandparent, or grandchild.
  • You receive the vehicle in a divorce.