Does Utah tax Social Security? Yes, but a credit cancels it below $54,000 ($90,000 joint)
On paper yes, in practice not below $54,000 of income ($90,000 joint). Utah taxes all income at one rate, 4.45% for 2026, including the part of your benefits the federal return taxes. Then a credit gives that tax back: 4.45% of your taxable benefits, reduced by 2.5% of your modified AGI above $54,000 ($90,000 joint). The credit cannot make your tax negative.
The rule, in Utah's words
The 2025 TC-40 instructions: “You may qualify for this credit if you (or your spouse, if filing jointly) received taxable Social Security retirement, disability or survivor benefits.” The worksheet reduces it with “Multiply line 11 by 0.025”, where line 11 is income above the limit. One exception: “You may not claim this credit if you (or your spouse, if filing jointly) claim the Retirement Credit (code 18).”
What Social Security adds to your Utah tax in 2026
Each row compares Utah's 2026 income tax with your Social Security and without it, for the same IRA or 401(k) withdrawals. The difference is what your benefits cost you in Utah tax, through every rule at once. For the single example, the extra tax starts once IRA withdrawals pass about $22,500, where income passes the limit; for the couple, about $41,000. Utah's separate taxpayer credit also shrinks as income rises, which adds to the extra tax in the middle rows.
| IRA or 401(k) withdrawals | Federal AGI | Utah tax, 2026 | Same, without Social Security | Extra because of Social Security |
|---|---|---|---|---|
| $0 | $0 | $0 | $0 | $0 |
| $10,000 | $10,000 | $0 | $0 | $0 |
| $20,000 | $23,500 | $0 | $0 | $0 |
| $30,000 | $41,300 | $546 | $399 | $147 |
| $40,000 | $59,800 | $1,377 | $974 | $402 |
| $50,000 | $70,400 | $2,224 | $1,549 | $675 |
| $60,000 | $80,400 | $3,049 | $2,124 | $925 |
| $80,000 | $100,400 | $4,447 | $3,274 | $1,173 |
| $100,000 | $120,400 | $5,358 | $4,424 | $934 |
| $125,000 | $145,400 | $6,470 | $5,562 | $908 |
| $150,000 | $170,400 | $7,583 | $6,675 | $908 |
| IRA or 401(k) withdrawals | Federal AGI | Utah tax, 2026 | Same, without Social Security | Extra because of Social Security |
|---|---|---|---|---|
| $0 | $0 | $0 | $0 | $0 |
| $10,000 | $10,000 | $0 | $0 | $0 |
| $20,000 | $24,000 | $0 | $0 | $0 |
| $30,000 | $41,100 | $0 | $0 | $0 |
| $40,000 | $59,600 | $0 | $0 | $0 |
| $50,000 | $78,100 | $637 | $271 | $365 |
| $60,000 | $94,000 | $1,388 | $846 | $542 |
| $80,000 | $114,000 | $3,038 | $1,996 | $1,042 |
| $100,000 | $134,000 | $4,688 | $3,146 | $1,542 |
| $125,000 | $159,000 | $6,539 | $4,584 | $1,955 |
| $150,000 | $184,000 | $7,976 | $6,021 | $1,955 |
Computed with the same engine and figures as our eight-state tool: federal taxable Social Security from IRS Publication 915, the 2026 federal standard deduction including the extra amount at 65 and the senior deduction, and Utah's rules above. No other income, itemized deductions or credits. 4.45% for 2026 (Utah Code 59-10-104 as amended in 2026), and the Social Security credit uses the same rate (59-10-1042). The taxpayer credit starts to phase out at amounts indexed each year from $15,095 / $30,190; the 2026 amounts had not been published when checked on September 17, 2026, so the 2025 amounts are used.
Your numbers
Social Security disability benefits
The credit names disability and survivor benefits explicitly, so they get the same treatment as retirement benefits.
Pensions and IRA withdrawals
Utah taxes pensions and IRA withdrawals at the same flat rate, with no general retirement exclusion.
2027
No 2027 rate has been set that we know of. This page uses the 4.45% rate for 2026; the taxpayer credit's 2026 phase-out amounts had not been published when we checked, so the 2025 amounts are used.
The other states that tax Social Security
Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Vermont. All eight side by side are in the eight-state tool, and every state with its own instructions in the all-states tool. How much of your Social Security the federal return taxes is in our taxable Social Security calculator.
Rechecks and changes
- . First published.
Sources
- Utah State Tax Commission, 2025 TC-40 instructions (Social Security Benefits Credit, code AH)
- Utah Code 59-10-104 (4.45% for 2026)
- Utah Code 59-10-1042 (Social Security credit)
- Dollars Ahead, Retirement Tax by State (the eight-state tool and its test cases)
This page shows what published tax rules do to the example incomes. It is not tax, legal or financial advice. For a decision that matters, take your numbers to a professional licensed to advise you.