Utah Estate Tax: Everything You Need to Know

There is no estate tax in Utah. There is a federal estate tax, though, and residents of the Beehive State with sufficiently large estates may have to pay that. This guide is for Utahns who are starting to think about estate planning and want to learn more to ensure they protect their assets and prepare their families. If you want help with estate planning or financial planning more generally, consider working with a financial advisor.

Utah Estate Tax

Utah is one of 38 states with no estate tax.

What Is the Estate Tax?

The estate tax, sometimes called the “death tax,” is a tax levied on the estate of a person who has recently died. It applies to the money and assets in an estate before they are dispersed to a person’s designated heirs. Only estates that reach a legally defined threshold are subject to the estate tax.

The inheritance tax is different from the estate tax. The inheritance tax applies to money after it has been passed on to beneficiaries, who are responsible for paying the tax.

Utah Inheritance and Gift Tax

Utah does not levy an inheritance tax. However, inheritance laws from other states may apply to you if someone from a state with an inheritance tax leaves you something. Pennsylvania, for instance, has inheritance laws that apply to out-of-state inheritors. Check local laws if you inherit money or property from someone living out of state. It’s always better to check than to find out later that you should have paid a tax bill and didn’t.

Utah does not have a gift tax. There is a federal gift tax exclusion of $18,000 per receiver for 2024, up from $17,000 in 2023. If you gift one person more than $18,000 in 2024, you must report it to the IRS. The gift in excess of $18,000 will reduce your lifetime exemption of $13.61 million and your federal estate tax exemption.

Federal Estate Tax

Though Utah has no estate tax, there is still a federal estate tax to think about. If your estate is large enough, the federal government may tax your estate after you die. There is an $13.61 million exemption for the federal estate tax in 2024, up from $12.92 in 2023. The exemption is portable for married couples. This means that when both spouses die, they can protect up to $27.22 million in their estate with the right legal steps.

Any estate exceeding the exemption will owe estate tax. The top rate is 40%. See a full table of rates below.

Here’s how to figure out how much you’ll owe. Let’s say your total estate is worth $15.43 million and you are not married. First, subtract the $13.61 million exemption. That leaves a taxable estate of $1.82 million. You are therefore in the top tax bracket and will owe $345,800 on the first $1 million. You’ll also owe 40% on the remaining $820,000, which comes to $328,000. Add that to the base rate and you have a total tax burden of $673,800.

Federal Estate Tax Rates

Taxable Estate*	Base Taxes Paid	Marginal Rate	Rate Threshold**
$1 – $10,000	$0	18%	$1
$10,000 – $20,000	$1,800	20%	$10,000
$20,000 – $40,000	$3,800	22%	$20,000
$40,000 – $60,000	$8,200	24%	$40,000
$60,000 – $80,000	$13,000	26%	$60,000
$80,000 – $100,000	$18,200	28%	$80,000
$100,000 – $150,000	$23,800	30%	$100,000
$150,000 – $250,000	$38,800	32%	$150,000
$250,000 – $500,000	$70,800	34%	$250,000
$500,000 – $750,000	$155,800	37%	$500,000
$750,000 – $1 million	$248,300	39%	$750,000
Over $1 million	$345,800	40%	$1 million

*The taxable estate is the total above the 2024 federal exemption of $13.61 million.
**The rate threshold is the point at which the marginal estate tax rate kicks in.

Overall Utah Tax Picture

Utah’s retirement tax-friendliness is a mixed bag. It fully taxes Social Security payments and withdrawals from retirement accounts. Income from private and public pension plans is also taxable, though the state offers a tax credit. Utah has a flat income tax of 4.65%.

Property taxes are lower than the national average, with an average effective rate of just 0.58%. There is also a homestead exemption that protects 45% of the value of all homes from property tax.

Utah has very high sin taxes. This includes an alcohol tax adding up to more than $12 per gallon of liquor.

Estate Planning Tips

Estate planning, like any type of financial planning, could benefit from working with a professional. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
As you’re planning your estate, think about the end of your life as well. You may want to consider drafting a living will. A living will provides instructions for matters like medical care when you can no longer make decisions. Be sure to choose someone you trust to have power of attorney and make medical decisions on your behalf, if it comes to that.