Use Tax – Internet and Catalog Purchases

Some Utah taxpayers mistakenly believe that all of their purchases over the Internet are exempt from sales tax.

If an online or catalog retailer does not collect sales tax at the time of the sale, tax is still due on all taxable transactions. The name of the tax due is called use tax, and it is the same rate as the sales tax rate in the city or county where you live. Use tax is reported on line 22 of form TC-40, Utah Individual Income Tax Return. To find your local tax rate, see the chart below or click here to see a complete listing of sales tax rates.

Some catalog or Internet sellers – but not all – do collect Utah's sales tax. If the tax is not collected by the seller, it is up to the purchaser to remit use tax to the Tax Commission on taxable transactions.

What is taxable?

The purchase or rental of tangible personal property (a product), and labor and parts used to repair or renovate tangible personal property are taxable. A few examples are:

• magazine subscriptions and newsletters,
• Internet and mail-order products, and
• clothing, toys, books and other items of tangible personal property

Use Tax Rate Chart