Utah Primary Residence Exemption Guide

One of the biggest property tax benefits available to Utah homeowners is the Primary Residence Exemption. If you own and live in your home as your primary residence, Utah law allows a significant portion of your home’s taxable value to be exempt from property taxes.

For most Utah homeowners, this exemption is automatically reflected in their annual property tax bill – but it’s still important to understand how it works, who qualifies, and when you may need to notify your county assessor.

Use the buttons below to open our free Utah Property Tax Estimator already configured for your situation:

What Is Utah’s Primary Residence Exemption?

Utah law provides a property tax exemption for homes that are occupied as the owner’s primary residence. Currently, 45% of the fair market value of a qualifying primary residence is exempt from property taxation.

This means property taxes are calculated on only 55% of your home’s market value, resulting in substantially lower taxes than a comparable rental property or vacation home.

Example

Who Qualifies?

In general, a property qualifies for the Primary Residence Exemption if:

• You own the property
• You occupy it as your primary residence
• The home is where you normally live throughout the year

The exemption generally applies to owner-occupied homes, condominiums, townhomes, and certain manufactured homes that serve as the owner’s principal residence.

What Is Considered a Primary Residence?

Your primary residence is the home where you ordinarily live most of the year. County assessors may consider factors such as:

• Your driver’s license address
• Voter registration
• Mailing address
• Where your family lives
• Where you spend most of your time

Second homes, vacation homes, rental properties, and investment properties generally do not qualify.

Is the Exemption Automatic?

For many homeowners, yes. When you purchase and occupy a home as your primary residence, your county generally classifies the property accordingly.

However, if your property’s use changes – or if you purchase a second home – you should verify that your county assessor has correctly classified the property.

When Should You Notify the County?

You should contact your county assessor if:

• You move into a property that was previously a rental
• You convert your primary residence into a rental property
• You purchase a second home
• You believe your property has been incorrectly classified

Correct classification ensures your property taxes are calculated accurately.

Rental Properties and Vacation Homes

Rental homes and vacation properties generally do not qualify for the Primary Residence Exemption. Because they are taxed on their full taxable value, property taxes on otherwise similar homes may be substantially higher than those paid by owner-occupants.

This is one reason two neighboring homes can have noticeably different property tax bills. Use the estimator below to compare both scenarios:

How Much Can You Save?

The amount varies depending on your home’s market value, your county’s tax rate, your city’s tax rate, school district taxes, and other local taxing entities. Because the exemption removes nearly half of a home’s taxable value, the savings are often significant.

Can You Lose the Exemption?

Yes. If the property no longer qualifies as your primary residence – for example, if you convert it into a rental property – you generally lose the exemption beginning with the applicable tax year. It is important to notify your county if your occupancy changes.