Self-employment taxes in Utah
Utah taxes income at a flat rate of 4.5%. On top of your federal income tax and self-employment tax, your Utah taxable income is taxed at this single rate, after a state standard deduction of $0 for single filers and $0 for married couples.
- Structure: flat tax
- State rate: 4.5% on all taxable income
- Standard deduction: $0 single / $0 married
The federal taxes every self-employed person pays
No matter which state you're in, self-employment income carries federal self-employment tax of about 15.3% (12.4% Social Security up to the annual wage base, plus 2.9% Medicare), on top of federal income tax. You may also qualify for the 20% qualified business income (QBI) deduction, and you can deduct half of your self-employment tax. The calculator above includes all of this along with Utah's state tax.
Because you don't have an employer withholding taxes for you, you're generally expected to pay quarterly estimated taxes. A common rule of thumb is to set aside 25–30% of your net profit, but your exact number depends on your income and deductions, use the estimate above as your starting point.
Frequently asked questions
Do I pay Utah state tax on self-employment income?
Yes. Utah applies a flat 4.5% income tax to your self-employment income, after the state standard deduction, in addition to the federal taxes every self-employed person owes.
How much should I set aside for taxes in Utah?
Enter your profit above for a personalized number. As a rough guide, many self-employed people in Utah set aside 25–30% of net profit to cover federal and state taxes combined, but the calculator gives you a far more accurate figure.
Would an S-corp lower my taxes?
Possibly, if your profit is high enough. See the LLC vs S corp calculator to compare, or the full calculator to model your whole situation.