Utah State Income Tax Withholding

Reference Number: NFC-23-1688746689
Published: July 11, 2023
Effective: Pay Period 12, 2023

Summary

The income tax withholding formula for the State of Utah includes the following changes:

• The income tax rate has changed from 4.85 percent to 4.65 percent.
• The base allowance for Single filers has changed from $390 to $415.
• The base allowance for Married filers has changed from $780 to $830.
• The wages exempt from tax credit reduction for Single filers has changed from $7,774 to $8,371.
• The wages exempt from tax credit reduction for Married filers has changed from $15,548 to $16,742.

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:	UT
State Tax Withholding State Code:	49
Acceptable Exemption Form:	W-4 (see Additional Information section)
Basis for Withholding:	Federal marital status
Acceptable Exemption Data:	S/M, prior to 2020 Federal Form W-4. MS/MJ/HH, for 2020 or later Federal Form W-4.
TSP Deferred:	Yes
Special Coding:	The S, MS, and HH marital status will be treated as Single. The M and MJ marital status will be treated as Married.
Additional Information:	A State tax certificate is not required since the Federal Marital Status is used in the computation of the State formula. Employees who have not previously submitted a 2020 or later Federal Form W-4 or a prior to 2020 Federal Form W-4, will be withheld at the flat rate of 4.65 percent without benefit of the annual withholding allowance.

Withholding Formula (Effective Pay Period 12, 2023)

1. Subtract the nontaxable biweekly Thrift Savings Plan contribution from the gross biweekly wages.
2. Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program, and Flexible Spending Account — health care and dependent care deductions) from the adjusted gross biweekly wages.
3. Add taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
5. Multiply the annual taxable wages by 4.65 percent to determine the annual gross tax amount.
6. Calculate the annual withholding allowance. If the employee has not filed a W-4, then the annual withholding allowance is zero.
   1. Subtract the following amount from the employee's annual taxable wages, but not less than zero:

      Marital Status:	Amount:
      Single	$8,371
      Married	$16,742

   2. Multiply the amount calculated in step 6a by 1.3 percent to determine the annual withholding allowance reduction.
   3. Subtract the annual withholding allowance reduction from the following Base Allowance, but not less than zero; the result is the annual withholding allowance:

      Marital Status:	Base Allowance:
      Single	$415
      Married	$830

7. Subtract the annual net withholding allowance in step 6c from the annual gross tax amount to determine the employee's annual net tax.
8. Divide the annual tax withholding calculated above by the number of pay dates in the tax year to obtain the biweekly tax withholding.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications Library section to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

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