Calculating your take-home pay in Utah requires navigating three distinct tax layers: Federal income tax, FICA (Federal Insurance Contributions Act), and Utah's unique flat-rate state income tax. Unlike many states that use progressive tax brackets, Utah employs a flat tax system, making it relatively straightforward to estimate your state liability.
Utah State Income Tax Rate
As of 2024, the Utah state income tax rate is 4.65%. This rate applies to your taxable income regardless of whether you earn $30,000 or $300,000. While the rate is flat, Utah offers a "Taxpayer Tax Credit" which phases out as income increases, effectively providing some relief for lower-income earners.
Federal Taxes and FICA
In addition to state taxes, every worker in Utah is subject to federal obligations:
Social Security: 6.2% of your gross pay (up to the annual wage limit).
Medicare: 1.45% of your gross pay.
Federal Income Tax: Based on progressive brackets ranging from 10% to 37%.
Calculation Example: $65,000 Annual Salary
If you are a single filer in Utah earning $65,000 annually and paid bi-weekly:
Item
Annual Amount
Bi-weekly Paycheck
Gross Pay
$65,000.00
$2,500.00
FICA (7.65%)
$4,972.50
$191.25
Utah State Tax (4.65%)
$3,022.50
$116.25
Estimated Federal Tax
$6,215.00
$239.04
Net Take-Home Pay
$50,790.00
$1,953.46
How to Increase Your Take-Home Pay
While you cannot change the tax rates, you can lower your taxable income in Utah by contributing to employer-sponsored plans. Contributions to a 401(k) or a Health Savings Account (HSA) are generally made "pre-tax," meaning they are deducted from your gross pay before federal and state income taxes are calculated. This lowers your overall tax burden and puts more of your money into your own savings rather than tax withholdings.