What is the Utah PTET rate?

Utah's PTET rate is 4.50% flat. UT SALT FAQ: 'The SALT tax is calculated by multiplying the total amount of voluntary taxable income for all Final PTETs by the individual income tax rate for the taxable year.' + UT incometax.utah.gov tax-rates page: 'Multiply line 9 by 4.5 percent (.045)' (TY 2025). 2026 SB 116 reduction to 4.45% enacted but not yet on UT DOR primary pages.

Is the Utah owner credit refundable?

Utah's PTET owner credit is non-refundable. Credit (code AP) claimed by member equal to amount of tax paid on member's behalf per Utah K-1; no specific form for credit.

Does Utah PTET affect composite-return filing?

Stacks. See the composite-vs-PTET page for the full matrix.

Utah · UT

Utah Pass-Through Entity Tax (PTET)

Utah's PTET regime is one of the 37+ state workarounds to the federal SALT cap (IRC §164(b)(6)). The election is annual, statute-pinned below, and interacts with composite filing and §199A QBI in state-specific ways.

Statute: Utah Code § 59-10-1043.2 (Pass-Through Entity Taxpayer Income Tax Credit / SALT Report)
State DOR portal: https://tax.utah.gov/business/pass-through/salt-faq/
Election deadline: Election made online by filing Form TC-75 and making payment via Utah TAP. Must be made on or before the LAST DAY of the PTE's taxable year (i.e., Dec 31 for calendar-year filers).
Election form: Form TC-75 (State and Local Tax (SALT) Report)
Entity-level rate: 4.50% — UT SALT FAQ: 'The SALT tax is calculated by multiplying the total amount of voluntary taxable income for all Final PTETs by the individual income tax rate for the taxable year.' + UT incometax.utah.gov tax-rates page: 'Multiply line 9 by 4.5 percent (.045)' (TY 2025). 2026 SB 116 reduction to 4.45% enacted but not yet on UT DOR primary pages.
Eligible entities: s-corp, partnership, llc-as-s, llc-as-partnership
Owner credit: non-refundable — Credit (code AP) claimed by member equal to amount of tax paid on member's behalf per Utah K-1; no specific form for credit.
Composite interaction: stacks
§199A QBI base reduction: Yes — Reduces federal flow-through income (Notice 2020-75).
Last verified: 2026-05-12

Source: tax.utah.gov/business/pass-through/salt-faq/ + TC-75 instructions. Utah's LAST-DAY-OF-YEAR election deadline is the LATEST in the country — significant filing-flexibility advantage.

IRC §164(b)(6)Notice 2020-75 IRC §199A

Reference computation

For a Utah pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Utah — reference example

QBI allocation·UT rate= Entity-level tax

$500,000×5%=$22,500

Utah Code § 59-10-1043.2 (Pass-Through Entity Taxpayer Income Tax Credit / SALT Report)

Entity tax·Federal bracket= Federal deduction (gross)

$22,500×37%=$8,325

At a 37% federal bracket, the entity-level deduction saves $8,325 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,665), aggregate benefit is approximately $6,660.

IRS Notice 2020-75

Run the picker pre-filled for Utah

Election walkthrough

Verify eligibility. Utah accepts: s-corp, partnership, llc-as-s, llc-as-partnership.
Check the deadline. Election made online by filing Form TC-75 and making payment via Utah TAP. Must be made on or before the LAST DAY of the PTE's taxable year (i.e., Dec 31 for calendar-year filers). Annual election; irrevocable for that tax year.
Compute the entity-level tax. Apply the 4.50% rate to qualified net income.
Pay and file. Use Form TC-75 (State and Local Tax (SALT) Report). Quarterly estimates may be required.
Owners claim the state credit. non-refundable credit on the personal state return.
Verify composite interaction. Composite interaction: stacks. See composite vs PTET.
Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Utah PTET — common questions

Annual deadline reminder

State PTET law revises annually. Utah's data was last verified on 2026-05-12. Re-confirm with the state DOR primary source before electing or filing. Last full-site review: 2026-05-12.

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Reference computation

For a Utah pass-through entity with $500,000 of qualified net income allocated to this state, at a 37% federal marginal bracket, the entity-level PTET and federal-deduction math is:

Entity tax·Federal bracket= Federal deduction (gross)

$22,500×37%=$8,325

At a 37% federal bracket, the entity-level deduction saves $8,325 in federal tax. Net of §199A QBI offset (~20% × bracket × entity tax = $1,665), aggregate benefit is approximately $6,660.

IRS Notice 2020-75

Election walkthrough

Verify eligibility. Utah accepts: s-corp, partnership, llc-as-s, llc-as-partnership.

Check the deadline. Election made online by filing Form TC-75 and making payment via Utah TAP. Must be made on or before the LAST DAY of the PTE's taxable year (i.e., Dec 31 for calendar-year filers). Annual election; irrevocable for that tax year.

Compute the entity-level tax. Apply the 4.50% rate to qualified net income.

Pay and file. Use Form TC-75 (State and Local Tax (SALT) Report). Quarterly estimates may be required.

Owners claim the state credit. non-refundable credit on the personal state return.

Verify composite interaction. Composite interaction: stacks. See composite vs PTET.

Run the federal §199A QBI math. PTET reduces the QBI base proportionally; net the federal SALT-arbitrage against the §199A offset.

Utah PTET — common questions