Does Utah Tax Social Security Benefits in 2025?
Yes, Utah can tax Social Security benefits, but many Utah retirees qualify for a state tax credit that may reduce or eliminate the Utah tax owed on those benefits.
The actual result depends on your filing status, total income, and how much of your Social Security is taxable on your federal return.
Estimate Your Utah Retirement Taxes
Use our free Utah Retirement Income Tax Calculator to estimate how Social Security, IRA withdrawals, pensions, and other retirement income may be taxed.
Calculate My Utah Retirement TaxesHow Utah Treats Social Security Benefits
Utah generally follows the federal treatment of Social Security benefits. If your Social Security benefits are not taxable on your federal return, they generally are not included in your Utah taxable income.
If part of your Social Security benefits are taxable federally, that taxable portion is generally included in your Utah taxable income as well.
How Much of Social Security Is Taxable Federally?
The federal government uses a formula based on “combined income.” Combined income generally includes your adjusted gross income, tax-exempt interest, and one-half of your Social Security benefits.
Depending on your income level, none, some, or up to 85% of your Social Security benefits may be taxable federally.
Since Utah begins with federal income calculations, the federal taxable portion of your Social Security benefits matters for Utah tax purposes too.
Utah Social Security Benefits Tax Credit
Utah provides a Social Security Benefits Tax Credit that can reduce the Utah tax owed on taxable Social Security benefits.
For 2025, the Utah Social Security credit begins to phase out when income exceeds:
- $54,000 for Single filers
- $90,000 for Married Filing Jointly
- $45,000 for Married Filing Separately
If your income is below the applicable threshold, you may qualify for the full credit. If your income is above the threshold, the credit is gradually reduced.
Example: Social Security With No Other Income
Suppose a married couple receives $40,000 in annual Social Security benefits and has no other taxable income.
In that situation, their Social Security benefits may not be taxable federally because their combined income is below the federal threshold. If none of the benefits are taxable federally, there may be no Utah tax owed on those benefits either.
Example: Social Security Plus IRA Withdrawals
Now suppose a married couple receives:
- $40,000 in Social Security benefits
- $20,000 in traditional IRA withdrawals
In that case, part of their Social Security benefits may become federally taxable. Utah may then include that taxable portion in Utah taxable income, but the couple may also qualify for Utah credits that reduce their state tax bill.
This is why a simple yes-or-no answer is not always enough. The mix of income sources matters.
Does Utah Tax All Retirement Income the Same Way?
No. Social Security benefits, IRA withdrawals, pensions, Roth IRA withdrawals, and military retirement pay can all be treated differently for tax purposes.
For example, Roth IRA withdrawals are often tax-free if qualified, while traditional IRA and 401(k) withdrawals are generally taxable. Military retirement income may qualify for a Utah military retirement tax credit.
Use a Calculator Before You Assume
Many retirees are surprised by how much their tax result changes based on a few income differences. A small IRA withdrawal, pension payment, or part-time income source can affect how much Social Security becomes taxable.
Try the Utah Retirement Income Tax Calculator
Enter your Social Security benefits, IRA withdrawals, pensions, military retirement pay, and other income to estimate your federal and Utah retirement taxes.
Estimate My Retirement TaxesOfficial Resources: For current Utah tax information, visit the Utah State Tax Commission. For federal Social Security tax rules, visit the IRS.