Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified Utah tax professional before filing.
Utah · USA · Short-term rental taxes
Short-Term Rental Taxes in Utah
Short term rental taxes in Utah: sales tax of 6.35%–10.05% plus a 1.07% statewide transient room tax and county and city room taxes on stays under 30 days, then a flat 4.45% income tax on profit.
The 30-Second Answer
- Short term rental tax in Utah has two layers. Every stay of less than 30 consecutive days owes sales tax (a 4.85% state portion; combined rates run 6.35%–10.05% by location from July 1, 2026) plus transient room tax (TRT).
- Transient room tax stacks up: a 1.07% statewide TRT (0.32% plus 0.75% added on July 1, 2025), a county TRT of up to 4.5% (4.75% in Salt Lake County, which also pays an extra 0.25% state TRT), and a city TRT of up to 1%, plus up to 0.5% more in qualifying towns.
- Airbnb collects Utah sales tax and transient room taxes on stays of 29 nights or shorter. For direct bookings, you report sales tax on TC-62M or TC-62S and room tax on TC-62T, filed through Taxpayer Access Point (TAP).
- Utah taxes net rental profit at a flat 4.45% for 2026 (S.B. 60, retroactive to January 1, 2026). File it with your federal return by April 15, 2027. A home rented by the night also loses the 45% primary residential property-tax exemption.
Deductions
What Utah STR Hosts Can Deduct
Utah's income tax starts from your federal figures, so every ordinary and necessary rental expense you claim federally also lowers the 4.45% state tax.
Sales tax and transient room tax you collect from guests are not your income. Keep them out of gross rents, or record them as income and deduct the same amount when you remit. If you also stay in the home, split expenses between rental and personal days under IRC §280A.
Filing Calendar
Key Dates & Filing Calendar
Utah sales tax and transient room tax run on a Tax Commission calendar set by your prior-year liability. Income tax follows the federal April deadline.
Stays of 30 consecutive days or longer are exempt from both Utah sales tax and transient room tax, so a monthly rental can take a tenant out of the room tax entirely.
Utah State Tax Commission — Transient Room Taxes; Publication 56; Tax Bulletins 10-25 and 21-25
Federal & Utah Income Tax Treatment
Passive Rental vs. Active Business: Which Applies to Your Utah STR?
Your federal Schedule E or Schedule C choice drives the numbers on your Utah return, which then taxes the result at a single flat 4.45% rate.
Passive Rental — Schedule E
The usual route for Utah vacation homes
- Report rents and expenses on Schedule E; the net figure flows into your Utah return and is taxed at 4.45%.
- No self-employment tax on net rental income.
- Passive-loss limits apply; the $25,000 allowance phases out between $100,000 and $150,000 of modified AGI.
- Depreciate the building over 27.5 years; contents bought after January 19, 2025 can take permanent 100% bonus depreciation.
No ceiling; Utah's single rate is 4.45% for 2026
Active Business — Schedule C
When you run it like a small hotel
- Applies when the average stay is 7 days or less and you provide substantial services (daily housekeeping, meals, guided tours).
- Net profit owes 15.3% self-employment tax; the Social Security part stops at the $184,500 2026 wage base.
- Losses may offset other income if you materially participate.
- May qualify for the federal §199A QBI deduction; Utah still taxes the resulting income at 4.45%.
No ceiling; SE tax applies on top of federal and Utah income tax
Depreciation
Depreciation for Utah STR Properties
Depreciation is a federal deduction that carries straight through to your Utah return, so it cuts both taxes.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential rental building | 27.5 years (straight-line) | Exclude land value; use the county assessor's land/improvement split as a starting point. |
| Furniture, appliances & hot tubs | 5 years (MACRS) | Items acquired after January 19, 2025 qualify for permanent 100% bonus depreciation. |
| Decks, patios & fencing | 15 years (MACRS) for land improvements | Outdoor improvements that are not part of the building, such as fences, patios and driveways. |
| Roof, HVAC & structural upgrades | 27.5 years | Improvements to the building itself follow the building's recovery period. |
A cost segregation study can move parts of the property into 5- and 15-year classes. Get professional advice before commissioning one.
On sale, depreciation you claimed (or could have claimed) is recaptured federally at up to 25%. Utah taxes the gain at its flat 4.45% rate.
Sales & Transient Room Taxes
Utah Sales Tax and Transient Room Tax on Vacation Rentals
The lodging tax in Utah on a vacation rental is really two taxes: sales tax on the stay, plus a stack of state, county and city transient room taxes.
The Utah State Tax Commission administers both taxes for the state, counties and cities. Rates depend on the exact location and can change quarterly.
6.35%–10.05% combined sales tax, plus 1.07% or more in transient room tax
Utah State Tax Commission — Publication 56; Sales & Use Tax Rates effective July 1, 2026; Tax Bulletins 10-25 and 21-25
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb booking | Airbnb collects Utah combined sales tax, the statewide TRT and local transient room taxes on stays of 29 nights or shorter | Keep Airbnb's tax reports. Report any direct or other-platform stays yourself |
| Vrbo / Booking.com booking | Check the taxes shown on each booking and your payout statement — we could not confirm a published Utah list from these platforms | Assume you owe any tax the platform does not itemise as collected |
| Direct booking | You collect sales tax and TRT from the guest and file TC-62M/TC-62S and TC-62T through TAP | Register for a Utah sales tax account before your first direct stay and keep tax separate from rent |
Combined sales tax rates from the July 1, 2026 chart include Salt Lake City 8.45%, Park City 9.55%, Moab 9.35%, Springdale 8.38% and St. George 6.75%. Transient room tax is on top. In Orangeville, for example, TRT alone totals 6.57% from January 1, 2026. Always check the current rate chart for your address.
Platforms
Airbnb Tax in Utah: What the Platforms Collect
Airbnb handles Utah's sales and transient room taxes on most bookings. For other channels, check what is itemised as collected. IRS income reporting follows federal thresholds.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Form 1099-K above $20,000 and 200 transactions; 1099-MISC for other payments of $2,000+ | Yes — Utah combined sales tax, statewide transient room tax and county/municipal/tourism room taxes on stays of 29 nights or shorter | Earnings and tax reports in the host dashboard |
| Vrbo | Form 1099-K at the same federal thresholds | Not confirmed at a primary source for Utah — check the taxes shown on each booking | Annual payout summary in the owner dashboard |
| Booking.com | Varies by payment model | Not confirmed — often depends on whether the guest pays the property or the platform | Invoices and payout statements in the extranet |
| Direct bookings | No third-party reporting; you report all income | No — you collect and remit sales tax and TRT to the Tax Commission | Your own ledger |
Using More Than One Platform?
Each platform remits tax only on its own bookings and reports only its own payouts. Your Utah returns and your federal return need the total across Airbnb, Vrbo, Booking.com and direct stays, so keep one ledger for all channels.
US Reporting — 1099-K, Not DAC7
DAC7 is an EU directive and does not apply to Utah rentals. US platforms report host payouts on Form 1099-K once gross payments exceed $20,000 and 200 transactions in the year. All rental income is taxable whether or not a form arrives.
Airbnb Help Center — Occupancy tax collection and remittance by Airbnb in Utah (airbnb.com/help/article/2333); IRS — Form 1099-K
Illustrative P&L: A Southern Utah Vacation Home
Example: a home earning $45,000 in rents (excluding sales and room taxes paid by guests). For illustration only — not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
Utah hosts answer to two auditors: the IRS for income tax and the Utah State Tax Commission for income, sales and transient room tax.
| Keep | How long | Why |
|---|---|---|
| Booking records (dates, nights, rate, fees, channel) | At least 3 years after filing | Proves which stays were under 30 days (taxable) and which were 30+ days (exempt), and supports rental vs. personal days |
| Platform tax reports showing sales tax and TRT collected | At least 3 years after filing | Shows the Tax Commission that tax on those stays was already remitted by the platform |
| TC-62M/TC-62S and TC-62T returns and payment confirmations | At least 3 years after filing | Evidence of what you filed for direct bookings |
| Expense receipts and invoices | 3 years from filing (6 if income is understated by more than 25%) | Backs up deductions on Schedule E or C, which flow to your Utah return |
| Purchase closing statement, improvement invoices, depreciation schedule | Until 3 years after you sell | Needed to compute basis, gain and depreciation recapture on sale |
Record the county and city on every booking. TRT depends on location, and a single rate chart change can make last quarter's rate wrong for this quarter.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
This page is for education only and is not tax or legal advice. Utah rates can change quarterly; confirm your rate with the Utah State Tax Commission and a qualified tax professional before filing.
- Utah State Tax Commission — Transient Room Taxes — Under-30-day rule, TC-62T filing through TAP, due dates. https://tax.utah.gov/sales/transientroom
- Utah State Tax Commission — Publication 56, Sales Tax Information for Lodging Providers — Statewide 1.07% TRT, county up to 4.5% (Salt Lake County 4.75%), city up to 1% + 0.5%, 30-day exemption, TC-62M/S/T. https://tax.utah.gov/forms/forms-pubs/pub-56
- Utah Tax Bulletin 10-25 — Transient Room Tax Rate Changes — 0.75% statewide TRT increase effective July 1, 2025. https://tax.utah.gov/bulletin/tb-10-25.pdf
- Utah Tax Bulletin 21-25 — Transient Room Tax Rate Changes — County TRT increases to 4.5% and Orangeville 1% municipal TRT from Jan 1, 2026. https://files.tax.utah.gov/tax/bulletin/tb-21-25.pdf
- Utah State Tax Commission — Sales & Use Tax Rates effective July 1, 2026 — 4.85% state portion; combined rates 6.35%–10.05%. https://files.tax.utah.gov/tax/salestax/rate/26q3combined.pdf
- Utah Code §59-10-104 (effective 1/1/2026) — Individual income tax rate of 4.45%. https://le.utah.gov/xcode/title59/chapter10/C59-10-S104_2026050620260506.pdf
- Summit County — Primary Residence Exemption — Nightly or short-term rentals do not qualify for the exemption. https://www.summitcountyutah.gov/525/Primary-Residence-Exemption
- Airbnb Help Center — Occupancy tax collection and remittance by Airbnb in Utah — Taxes Airbnb collects on Utah stays of 29 nights or shorter. https://www.airbnb.com/help/article/2333
- IRS — Understanding your Form 1099-K — Federal third-party reporting for payment platforms. https://www.irs.gov/businesses/understanding-your-form-1099-k
Questions
Frequently Asked Questions — Utah STR Taxes
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