If you are a resident or nonresident of Utah and receive taxable income individually from property owned or business transacted in Utah, you are subject to tax on net income. Therefore, if you are operating your business as an S corporation, partnership, limited liability company, or sole proprietorship, you will be subject to a personal income tax on your business income that passes through to you.
For the 2009 tax year, the Utah state income tax is imposed at a flat rate of five percent of taxable income. Utah recently changed from a graduated rate structure for personal income taxes, while also providing a flat-rate option.
If your individual income in Utah consists solely of sales and you don't own or rent realty or personal property in Utah and your gross annual sales do not exceed $100,000, you may elect to pay an alternative tax. The alternative tax is 0.5 percent of the volume of sales.