Utah’s Tax Burden Reveals A Surprising Balance For Residents

Last month, we were being warned to beware the ides of March. A month later and I'm thinking we should be warning about the Ides of April, because ready or not, tax day is now coming up within the week.

It's not just federal taxes that are due, but we also have to settle our state taxes, and what we pay in the Beehive State might surprise you.

A new analysis from the WalletHub suggests Utah sits in a somewhat unexpected position when it comes to taxes: not among the highest in the nation, but still above average compared to many of its western neighbors.

In WalletHub’s latest ranking of state tax burdens, Utah comes in 19th overall, with residents paying about 9.46 percent of their income toward state and local taxes. The study measures tax burden as a share of income rather than simply comparing tax rates, offering a more practical look at what people actually pay through property taxes, income taxes, and sales or excise taxes combined.

That placement puts Utah firmly in the upper third nationally, but the regional comparison tells a more nuanced story.

Utah Higher Than Most Of The Surrounding States

Among bordering states, Utah’s tax burden is noticeably higher than several of its neighbors. Wyoming ranks among the lowest in the country, benefiting from no state income tax and significant revenue from natural resources. Nevada also falls in the low-tax category, similarly avoiding income tax and relying more heavily on tourism-driven sales revenue.

To the north, Idaho typically lands closer to the middle of the pack, often below Utah in overall burden despite having a state income tax. Meanwhile, Arizona also tends to rank lower than Utah, thanks in part to a relatively modest overall tax structure.

On the higher end, however, Utah compares more favorably. Colorado generally falls near or slightly above Utah depending on the year, reflecting its combination of income and property taxes. New Mexico can also rank similarly or somewhat higher, particularly due to gross receipts taxes that function like sales taxes.

The breakdown of Utah’s tax burden helps explain its middle-to-upper ranking. Property taxes account for roughly 2.22 percent of income, income taxes about 3.31 percent, and sales and excise taxes make up the largest share at approximately 3.93 percent. Rather than relying heavily on one category, Utah spreads its tax load relatively evenly across all three.

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That balanced approach stands in contrast to states like Nevada or Wyoming, which offset the absence of income taxes with other revenue sources, or states like California and New York, which lean more heavily on income taxes.

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For Utah residents, the takeaway is relatively straightforward. While the state is often perceived as low-tax, the reality is more moderate. Compared to high-tax coastal states, Utah remains more affordable. But within the Intermountain West, it is not the bargain some might expect. Ultimately, WalletHub’s findings highlight how tax burden is shaped less by a single policy choice and more by the overall structure of a state’s revenue system. In Utah’s case, that structure results in a tax load that is steady, predictable, and—at least regionally—slightly on the higher side of the spectrum.