State guides · UT

How Utah taxes retirement income

Some 2026 figures pending confirmation  Tax year 2026 · research last updated October 2, 2026

At a glance

Social Security

Utah taxes some Social Security, depending on age or income.

Taxable Social Security (federal 1040 line 6b) is included in Utah income, then a nonrefundable Social Security Benefits Credit (UCA 59-10-1042) applies: credit = tax rate (4.45% for 2026) x taxable SS benefits, reduced by 2.5% (0.025) of 'modified income' above $54,000 single, $90,000 MFJ / HOH / qualifying surviving spouse, $45,000 MFS. Modified income (from TY2025, SB 71) = Utah taxable income - Utah municipal bond interest + federal tax-exempt interest. Cannot be combined with the Retirement Credit (code 18) or Military Retirement Credit.

Pensions, IRAs and 401(k)s

Utah has no general exclusion for pension, IRA or 401(k) income in 2026. It's taxed at the rates above, after any deductions and credits.

Roth conversions

A Roth conversion counts as taxable income for Utah.

Capital gains

Taxed like other income, at the rates above.

Credits and relief for older residents

• Taxpayer Tax Credit (UCA 59-10-1018) — applies to everyone, replaces standard deduction/exemptions. Credit = 6% x (federal standard or itemized deduction from federal 1040 line 12e [includes federal age-65/blind additional amounts; excludes the federal 2025-2028 senior $6,000 deduction on line 13b] minus state income tax itemized on federal Schedule A + $2,111 per dependent [2025]) minus 1.3% x (Utah taxable income - base phase-out amount). 2025 base amounts: $18,213 single/MFS, $27,320 HOH, $36,426 MFJ/QSS. Base amounts and dependent exemption are indexed annually; 2026 values not yet published.
• Retirement Credit (UCA 59-10-1019), code 18. Only for a taxpayer/spouse born on or before Dec 31, 1952: up to $450 per individual, reduced by 2.5% of modified AGI (TC-40 line 6 total income [federal AGI + Utah additions] - Utah muni bond interest + federal tax-exempt interest) over $25,000 single, $32,000 MFJ/HOH/QSS, $16,000 MFS. Cannot be claimed if SS Benefits Credit or Military Retirement Credit is claimed — Taxtirement should take the larger.
• Qualified exempt taxpayer. If federal AGI <= federal standard deduction (excluding age/blind extra amounts) plus federal senior enhanced deduction (Sched 1-A line 37), Utah tax is zero. TY2026 (HB 60): test uses Utah modified AGI, not just federally taxable income.

More detail from our research notes

S.B. 60 (2026 General Session) cut the individual rate from 4.5% to 4.45%, retrospective to tax years beginning on/after 2026-01-01. Utah taxable income = federal AGI + additions - subtractions (e.g., US obligation interest, railroad retirement). No standard deduction or personal exemption; relief comes via the nonrefundable Taxpayer Tax Credit. Retirees' taxable IRA/pension/Roth conversion income is fully taxed at 4.45%; the only age-specific relief is the SS credit and the (closed-cohort) $450 retirement credit. Because the SS credit equals the rate x taxable SS, below the phase-out threshold Social Security is effectively untaxed. Capital gains taxed as ordinary income (a narrow credit exists for reinvestment in Utah small business stock, and a credit for gold/silver coin gains).

Pending confirmation

These points were still being confirmed against Utah's published 2026 forms when this page was built. Most are waiting on forms the state publishes around the turn of the year.

2 items

• 2026 Taxpayer Tax Credit base phase-out amounts: single/MFS $18,696 and MFJ $37,392 are implied by Pub 14 (Rev. 4/26) withholding schedules; HOH $28,045 is derived (1.5 x single), and the 2026 dependent exemption (2025: $2,111) is not yet published. Take from the 2026 TC-40 instructions (expected Dec 2026/Jan 2027, https://tax.utah.gov/forms).
• Whether the Taxpayer Tax Credit's federal-deduction input (line 12e) will include/exclude any new federal 2026 items.

Sources

Every figure comes from these documents, mostly the state's own forms, instructions and statutes.

1. 2026 rate 4.45%, retrospective to 2026-01-01 (S.B. 60 enrolled); S.B. 60 (2026) enrolled: 59-10-104(2)(b) 4.45%, retrospective to taxable years beginning on or after Jan 1, 2026; no later stephttps://le.utah.gov/Session/2026/bills/enrolled/SB0060.pdf
2. 2025 TC-40 instructions: taxpayer credit (6%, 1.3%, base amounts, $2,111), SS credit worksheet ($54k/$90k/$45k, 0.025), retirement credit (born <= 1952, $450, $25k/$32k/$16k, 0.025), qualified exempt taxpayerhttps://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf
3. 2025 TC-40 form (4.5% rate line, $2,111 exemption, base phase-out amounts)https://files.tax.utah.gov/tax/forms/current/tc-40full.pdf
4. Tax Commission 2026-01-15 webinar: SB 71 (2025) SS credit uses state taxable income, thresholds raised; HB 60 effective 2026https://files.tax.utah.gov/tax/train/webinars/2026-01-15-presentation.pdf
5. TC-40 line 14 state income tax removed from the federal itemized deduction: Sch A 5e - 5b - 5c, not below 0, no sales tax (2025 TC-40 instructions p. 8); UCA 59-10-1018(1)(e)-(f)https://tax.utah.gov/forms/current/tc-40inst.pdf
6. Utah Code 59-10-1042 (effective 1/1/2026, amended 2025 ch. 182): SS credit = 59-10-104(2) rate (4.45% for 2026) x SS in state taxable income, reduced $.025 per $ of MAGI over $45,000 MFS / $54,000 single / $90,000 HOH / $90,000 jointhttps://le.utah.gov/xcode/Title59/Chapter10/C59-10-S1042_2026010120250507.html
7. Utah Code 59-10-1019 (effective 3/23/2022): retirement credit $450 per claimant born on or before 12/31/1952, reduced $.025 per $ of MAGI over $16,000 MFS / $25,000 single / $32,000 HOH / $32,000 joint; not with 1042/1043https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S1019_2022032320220323.html

Taxtirement's Utah calculation is also checked against a second, independent implementation on 1,000 random households. How we check our numbers.

This page summarizes Utah's 2026 rules as Taxtirement applies them, for education and planning. It isn't tax advice, and it doesn't cover every situation (for example part-year residents, businesses or military-only provisions). Rules change; check the state's current instructions, or a tax professional, before you act. Spotted something wrong? Tell us.