State guide · Utah · 2026 rules
S corporation in Utah: what the election changes
Utah adds no entity tax and no new fee. The election brings unemployment tax on your salary, at a rate Utah sets for your industry.
Choose a state and enter your profit and salary to see the comparison.
The state
Utah follows the federal S election. The S corporation files Form TC-20S each year.
Utah’s $100 minimum corporate tax does not apply to S corporations. With a Utah-resident owner, the S corporation owes no entity income tax. You pay Utah’s flat individual tax on the business income either way: 4.45% for 2026.
The annual renewal fee is $18 for an LLC and a corporation alike, so an LLC that elects pays the same $18.
Unemployment tax on your salary
Utah sets each new employer’s unemployment rate by industry: the average benefit ratio of employers in that industry, times a reserve factor, plus a small social cost. For 2026 rates run from 0.1% to 7.1%, on the first $50,700 of wages. New out-of-state construction contractors get 7.1%.
Corporate officers are covered. An LLC member is exempt only until the IRS approves the LLC to file as a corporation, so once your LLC elects, the salary it pays you is covered.
The calculator asks for your rate. You get it when you register as an employer.
The optional SALT payment
An S corporation, including one with a single owner, can pay Utah income tax for its owner at 4.45% on Form TC-75. The owner claims a nonrefundable credit. The payment must be made by December 31, and once made it cannot be undone or refunded. The calculator leaves it out.
Worked examples
A single-member LLC owner, single filer, 22% federal bracket, default payroll and return costs. The figure is total tax and added costs as an S corporation compared with staying as you are.
| Profit / salary | Statewide |
|---|---|
| $80,000 / $45,000 | $935 lower |
| $120,000 / $60,000 | $3,336 lower |
| $200,000 / $90,000 | $8,117 lower |
These examples leave out Utah unemployment tax, because the rate depends on your industry. Enter your rate in the calculator to include it.
Starting payroll in Utah
Register for state withholding with the Utah State Tax Commission through Taxpayer Access Point (form TC-69), and for unemployment insurance with the Utah Department of Workforce Services.
Other states
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, DC
- West Virginia
- Wisconsin
- Wyoming
Sources
- Utah State Tax Commission, S Corporation Tax page; 2025 TC-20S Instructions
- Utah Code 59-10-104(2) (eff. 1/1/2026; Laws 2026, ch. 250)
- Utah Division of Corporations, Fiscal Year 2026 Fee Schedule (effective July 1, 2025)
- Utah State Tax Commission, TC-75 Instructions (rev. 11/22)
- Utah Code 59-10-1403.2(2)(a) (eff. 1/1/2026)
- Utah Department of Workforce Services, UI Tax Rates
- Utah Code 35A-4-204(1)
- Utah Admin. Code R994-202-101(6)(b) (eff. 10/28/2022)
Federal figures: IRS Publication 15 (2026), Schedule SE and Form 2553 instructions. Every figure was read on an official page and checked a second time. Checked October 24, 2026. How we check facts.