Property Taxes in Utah: What Homebuyers Should Know
When you’re buying a home, the purchase price and mortgage rate usually take center stage. But there’s another ongoing cost that every buyer should plan for; property taxes. If you’re considering a move to the Beehive State, understanding property tax Utah 2025 rules will help you budget wisely and avoid surprises after closing.
Utah consistently ranks as one of the states with relatively low property tax rates compared to the national average. Still, tax rates and assessments vary by county, so it’s important for buyers to know what factors impact their bill. Let’s break down how Utah property taxes work, what’s changing in 2025, and how homebuyers can prepare.
How Utah Property Taxes Are Calculated
Property taxes in Utah are based on the county’s assessed value of your home, multiplied by the local tax rate. Every year, county assessors determine the market value of residential property. From there:
Primary Residence Exemption – If the home is your main residence, Utah grants a 45% exemption on the assessed value. For example, if your home is valued at $400,000, you’ll only be taxed on $220,000. Investment and second homes do not qualify.
Tax Rate (Mill Levy) – Each county sets a rate, often referred to as a “mill levy,” which combines city, county, school district, and special service district taxes. Rates can differ significantly between urban and rural areas.
Annual Adjustments – Counties reevaluate property values yearly. If property values rise quickly in your neighborhood, your tax bill may go up even if the rate stays the same.
Average Property Tax Rates in Utah for 2025
For 2025, Utah’s average effective property tax rate is expected to remain around 0.36% of home value, one of the lowest in the country. To put this into perspective:
A $400,000 primary residence in Salt Lake County might generate a tax bill of about $1,440 per year.
In comparison, the U.S. average effective rate is closer to 0.99%—nearly three times higher.
However, keep in mind that property taxes vary by county. Summit County, where Park City is located, typically has higher tax bills than more rural counties like Sanpete or Beaver.
To give you an idea, here' is a chart showing a few Utah counties and where their tax rates stack up against national average:
What’s New for Property Tax in Utah 2025
There are a few updates homebuyers should know for the 2025 tax year:
Increased Property Values: Many Utah counties, especially along the Wasatch Front, have seen continued appreciation in home prices. That means even if rates remain stable, assessed values, and therefore tax bills, may increase.
School Funding Adjustments: Several districts have approved bonds and levies to fund new schools in growing areas. This will impact local tax rates, particularly in fast-growing counties like Utah and Davis.
Digital Payment Options: Most counties now allow homeowners to pay taxes online, with some offering auto-pay features to simplify the process.
Tips for Homebuyers
If you’re planning to buy in Utah in 2025, here are a few smart steps to take:
Check County Rates Before You Buy: Property taxes can differ widely, even within the same metro area. Ask our agents or look up the county assessor’s website for exact rates.
Factor Taxes Into Your Monthly Payment: Lenders often roll property taxes into your escrow account, meaning you’ll pay a portion with each mortgage payment.
Apply for the Primary Residence Exemption: Don’t forget to file the paperwork after closing to secure your 45% tax reduction.
Appeal if Necessary: If you believe your assessed value is higher than fair market value, you can appeal with your county assessor. Deadlines are typically in late summer.
Final Thoughts
Utah remains one of the most tax-friendly states for homeowners, with property tax bills well below the national average. Still, buyers should understand how assessments and local tax rates work to avoid surprises. By planning ahead, checking county-specific rates, and applying for available exemptions, you’ll have a clear picture of your true housing costs.
Whether you’re relocating to Salt Lake City, investing in Park City, or buying your first home in Utah County, knowing the ins and outs of property tax Utah 2025 will help you make a confident and informed purchase.
