Utah’s 4.45% rate, retroactive to January 2026
Utah taxes capital gains at its single income tax rate, cut to 4.45% by SB 60 in the 2026 session and applied to the whole 2026 tax year. A confirmed $50,000 increase in Utah taxable income adds $2,225 before credits.
The headline rate understates what a large gain can cost in Utah. The state’s taxpayer tax credit shrinks as income climbs, so the added gain can cut that credit or wipe it out, and every dollar of credit lost is extra Utah tax on top of the 4.45%. Utah follows federal AGI for the home-sale exclusion. Older pages quoting 4.5% or 4.55% describe earlier years.
Utah SB 60 changes the annual 2026 rate
Utah’s enrolled 2026 SB 60 amends §59-10-104 to apply a 4.45% rate to state taxable income. The bill takes effect May 6, 2026 and contains a retrospective clause making the change operative for taxable years beginning on or after January 1, 2026. A pre-May sale is therefore not assigned a different annual rate under that clause.
The statutory product uses state taxable income, not sale proceeds and not federal ordinary income alone. Utah adjustments and the current return’s credits still need preparation. An old agency page or prior-year calculator showing 4.5% should be reconciled with the enacted 2026 change rather than assumed current.
For prepared Utah taxable-income amounts, the base mode computes 4.45% in both scenarios before credits. A confirmed $50,000 increase in that base produces $2,225 before credits. Use complete entered liabilities when credit changes, source allocation or another return provision matters. This Utah-specific law is why a Utah URL must not redirect to an Oklahoma calculator with different rules.
Utah preparation checklist
- SB 60 retrospective January 2026 clause
- Utah taxable-income adjustments
- Credits and source allocation outside the base mode