Selling a business in Utah: what the state takes (2026)
Utah’s top individual income tax rate is 4.45%. Here is what an owner selling company stock pays, with 2026 rules from official sources and worked examples at $10 million, $25 million and $50 million.
- 4.45%
- Top Utah income tax rate (2026)
- $1,112,500
- State tax on a $25M long-term gain
- 28.2%
- Combined federal and state rate on $25M
- 26 of 51
- Rank by total tax on $25M (1 = highest)
How Utah taxes a business sale
- Income tax
- Top rate 4.45%: Flat rate on all state taxable income.
- Long-term capital gains
- Capital gains are taxed as ordinary income at the flat 4.45% rate, with no exclusion. The taxpayer tax credit phases out completely at these income levels.
- Relief that applies only in some sales
- Utah Code 59-10-1022 gives a nonrefundable credit equal to the gain times the 4.45% rate if at least 70% of the gross sale proceeds are used within 12 months to buy newly issued stock in a Utah small business corporation (Sec. 1244-type, $2.5M capital limit, Utah commercial domicile) in which the seller held no prior interest. A typical founder exit rarely qualifies.
- Local taxes
- No local income taxes.
Three worked examples
| Long-term gain | $10,000,000 | $25,000,000 | $50,000,000 |
|---|---|---|---|
| Federal capital gains tax (20%) | $2,000,000 | $5,000,000 | $10,000,000 |
| Net investment income tax (3.8%) | $380,000 | $950,000 | $1,900,000 |
| Utah tax | $445,000 | $1,112,500 | $2,225,000 |
| Total tax | $2,825,000 | $7,062,500 | $14,125,000 |
| Effective combined rate | 28.25% | 28.25% | 28.25% |
| Net proceeds after tax | $7,175,000 | $17,937,500 | $35,875,000 |
| Extra tax versus Texas | $445,000 | $1,112,500 | $2,225,000 |
Seller’s tax calculator
Estimate federal and state tax on a stock sale and what is left before fees and debt.
- Long-term capital gain
- $25,000,000
- Federal capital gains tax (20%)
- $5,000,000
- Net investment income tax (3.8%)
- $950,000
- Utah tax
- $1,112,500
- Taxable gain at 4.45%
- $1,112,500
- Total tax
- $7,062,500
- Effective rate on the gain
- 28.25%
- Net proceeds after tax
- $17,937,500
Illustration, not tax advice. Assumes a resident individual, the whole gain long-term, top marginal rates, no state credits, installment terms, QSBS exclusion or other planning, and no local taxes. Net proceeds are before transaction fees, debt repayment, escrows and earn-outs. Rates are for tax year 2026 where published; see the methodology.
Compare with other states
Neighboring states
Common comparisons
- California37.1% combined, $15.72M net
- New York34.1% combined, $16.48M net
- Texas23.8% combined, $19.05M net
- Florida23.8% combined, $19.05M net
- Washington33.5% combined, $16.63M net
- Tennessee23.8% combined, $19.05M net
Methodology and sources
Utah figures are for tax year 2026. 2026 rate of 4.45% set by Utah Code 59-10-104 as amended by 2026 General Session ch. 250 (S.B. 60), effective 1/1/2026 (retroactive). The examples assume a resident individual selling privately held stock for a long-term gain equal to the sale price (zero basis), with every dollar taxed at the top marginal rates, the federal 20% capital gains rate and the 3.8% net investment income tax, and no planning, credits or local taxes. Full assumptions are in the report methodology.
All 50 states and DC with source URLs.
- 1Utah Code 59-10-104 (effective 1/1/2026, amended 2026 GS ch. 250)
- 2Utah Code 59-10-1022, credit for capital gain transactions
- 3EY Tax News 2026-0913: Utah law lowers income tax rate retroactive to Jan 1, 2026. Secondary source
- 4Tax Foundation, State Individual Income Tax Rates and Brackets, 2026. Secondary source
Data last updated October 26, 2026.
Cite this research
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Citation
Laurent Capital Research, “The Seller’s Tax Map: What Selling a Business Costs in Every State (2026): Utah,” 2026, https://laurent.capital/research/seller-tax-map/utahLink (HTML)
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