Utah’s 2025 Tax Updates at a Glance
- Lower State Tax Rate: Utah’s individual income tax rate drops to 4.55%.
- 529 Credit: Contributions made by Dec 31 may qualify for Utah’s nonrefundable tax credit.
- Primary Residence Relief: Homes used as your primary residence receive a 45% taxable value reduction—check county eligibility.
- No State Estate Tax: Utah continues to have no estate or inheritance tax.
Federal Tax Considerations for 2025
- Standard Deduction: Adjusted upward for inflation.
- IRA & 401(k) Limits: Contribution maximums increasing.
- Estate & Gift Exemption: Still high for 2025, but scheduled to shrink after 2026.
- RMD Age: Now 73 under SECURE 2.0.
What These Changes Could Mean for Your Plan
- Retirees: Review income and RMD timing under new thresholds.
- Families: 529 contributions and gifts may stretch further with lower rates.
- Business Owners: PTET election remains open through Dec 31, 2025—coordinate with your CPA before filing.
Stay Informed. Stay Prepared.
Small changes today can simplify next year’s financial planning.
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Content is for informational purposes only. Neither the information nor any opinion expressed in this content constitutes an offer by Cottonwood Wealth Strategies to buy or sell any securities or financial instruments, or to provide any investment advice or service.
Cottonwood Wealth Strategies does not provide legal, tax, or accounting advice.