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Last Updated on November 28, 2012

• What is Use Tax
• What is Taxable
• Use Tax Rate Chart
• Grocery Food Purchases
• Use Tax Worksheet

What is Use Tax?

Many people believe they don't have to pay sales tax on purchases made on the Internet or through a catalog. This is incorrect. If you purchase online or through a mail order from an out-of-state business, you must still pay Utah sales tax. If the tax was not paid to the business at the time of purchase, you must pay it with your Utah individual income tax return.

This sales tax that you pay directly to the Tax Commission is called "use tax" and is the same rate as the sales tax you pay in your city or county.

What is Taxable?

You must pay use tax on all taxable items bought for storage, use or consumption in Utah during the tax year if sales tax was not paid to the seller at the time of purchase. You do not have to pay use tax if you paid Utah sales tax at the time of purchase. This includes Internet and catalog purchases.

Use tax must be paid on the purchase or rental of products (tangible personal property) as well as labor and parts used to repair or renovate products. Some examples are:

• Magazine subscriptions and newsletters
• Internet and mail-order products
• Clothing, toys, books, etc.
• Grocery food (see below)

If you paid sales tax to another state (but not a foreign country) on a purchase, you may claim a credit for the tax paid the other state in the calculation of the Utah tax you owe.

• If the other states’ tax rate is lower than Utah‘s, you must pay the difference.
• If the other states’ tax rate is more than Utah’s, no credit or refund is given.
• If you paid sales tax to more than one state, complete the worksheet below for each state.

Use Tax Rate Chart

Sales and use tax rates vary throughout Utah. Use the following chart to determine the local tax rate for the location where the merchandise was delivered, stored, used or consumed. Counties are listed in bold. Cities or towns with a rate different from the county are listed below the county name. If a city or town doesn't appear on the list, the rate is the same as the county.

Grocery Food Purchases

Grocery food bought through the Internet or catalog is taxed at 3% statewide. The grocery food must be sold for ingestion or chewing by humans and consumed for the substance's taste or nutritional value. Alcoholic beverages and tobacco are not considered grocery food.

Use Tax Worksheet

You may use the following worksheet to calculate your Utah use tax.

Use separate worksheets for each state, then add all lines 8.

Utah use tax is reported on line 31 of form TC-40, Utah Individual Income Tax Return.