Utah Sales Tax Guide for SaaS and E-Commerce Businesses 2025

Utah imposes a 4.85% state sales & use tax on taxable sales. Local option taxes vary by city/county; use the Tax Commission’s rate tools to confirm the combined rate at the delivery location. See: Sales & Use Tax.

This guide explains Utah’s treatment of SaaS (vendor-hosted prewritten software), digital products, economic nexus, marketplace facilitators, sourcing, and filing rules, with citations to Utah State Tax Commission (USTC) publications and Utah law.

Last updated: September 2025

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Quick Reference: Utah Sales & Use Tax (2025)

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SaaS & Software Taxability in Utah

Utah SaaS sales tax applies to prewritten (canned) computer software whether delivered on media, downloaded, or remotely accessed (SaaS/vendor-hosted).
Source: Pub. 64

Key points from USTC guidance:

• Prewritten software is taxable regardless of how it is delivered (boxed, downloaded, hosted, or remotely accessed/SaaS).
  Source: Pub. 64

• Maintenance, updates, and upgrades to prewritten software are generally taxable.
  Source: Pub. 64

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Digital Products

Utah taxes “products transferred electronically”, including digital books, music, videos, and similar content, whether downloaded or accessed online.
Source: Pub. 25

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E-Commerce & Tangible Goods in Utah

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Who Must Register and Collect Utah Sales Tax?

You must register and collect if you have:

• Physical nexus in Utah, or
• Economic nexus: $100,000 in Utah sales in the current or previous calendar year. (The 200-transaction test is eliminated effective July 1, 2025.)
  Sources: SB 47 (2025); Pub. 71 (Rev. 6/25)

Marketplace facilitators must collect and remit on facilitated sales once thresholds are met.
Sources: Pub. 71

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Sourcing & Local Tax

Utah follows point-of-sale sourcing rules that effectively source delivered goods and most taxable transactions to the location where the buyer receives the product or service (destination). See the sourcing chart and examples in Publication 25.
Source: Pub. 25

To determine the correct combined rate for a delivery address, use USTC’s rates page.
Source: Sales Tax Rates

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Filing & Due Dates

• Register & e-file: Apply for a Utah Sales Tax License and file returns via TAP.
  Source: TAP (Taxpayer Access Point)
• Filing frequency: Assigned by USTC (monthly/quarterly/annual) based on liability.
  Source: Pub. 25
• Due date: Returns are due the last day of the month following the reporting period.
  Source: Pub. 25

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How to Register for Utah Sales Tax

1. Determine nexus (physical or $100,000 economic nexus; no 200-transaction test after 7/1/2025).
   • SB 47 (2025)
2. Register and obtain a Sales Tax License; set up your online account.
   • TAP (Taxpayer Access Point)
3. Charge the correct rate: 4.85% state + local based on destination.
   • Sales Tax Rates
4. File & pay by the last day of the month after your period ends.
   • Pub. 25

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Exemption & Resale Certificates (Utah)

• Utah Sales Tax Exemption Certificate (TC-721): resale and other statutory exemptions.
  Source: TC-721

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FAQs: Utah Sales Tax

Is SaaS taxable in Utah?
Yes. Prewritten software is taxable regardless of how it’s delivered, including remotely accessed SaaS.
Source: Pub. 64

Are digital products (e-books, music, video) taxable?
Yes. Utah taxes “products transferred electronically,” whether downloaded or streamed.
Source: Pub. 25

What is Utah’s economic nexus threshold?
$100,000 in Utah sales (no 200-transaction test): effective July 1, 2025.
Sources: SB 47 (2025); Pub. 71 (Rev. 6/25)

Are shipping and delivery charges taxable?
Not if separately stated on the invoice; otherwise, they are part of the taxable sales price.
Source: Pub. 25

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Official Utah Resources

• General & Rates

  • Sales & Use Tax overview
  • Sales Tax Rates (city/county lookups)
  • Pub. 25: Sales & Use Tax General Information (Rev. 06/25)

• Software & Digital

  • Pub. 64: Sales Tax Information for Computer Software (SaaS/downloads)

• Marketplace / Remote Sellers

  • Pub. 71: Marketplace Sellers & Facilitators (Rev. 06/25)
  • Marketplace Facilitators (USTC page)
  • SB 47 (2025): Eliminates 200-transaction test; $100k sales remains

• Registration & Certificates

  • TAP: Taxpayer Access Point (apply, file, pay)
  • TC-721: Utah Sales Tax Exemption Certificate