Utah Resale Certificate Guide 2026: How to Get Yours

Utah has a fast-growing economy driven by technology (the "Silicon Slopes" corridor), outdoor recreation, healthcare, and financial services. The state has a complex combined sales tax rate structure with a 4.85% state rate plus a mandatory 1.25% local floor, resulting in a minimum combined rate of 6.1% everywhere in the state. With additional local options, rates can reach approximately 8.85%. Utah is a Streamlined Sales Tax (SST) member state that accepts the SST certificate for resale exemptions. This guide covers the complete process for 2026.

Utah Sales Tax Basics

State and Combined Rates

Utah's rate structure is more layered than most states. The components include:

• State rate: 4.85%
• Mandatory local floor: 1.25% (county option sales tax, transit, and other mandatory components)
• Additional local options that vary by county and city

This means the minimum combined rate anywhere in Utah is 6.1%. In Salt Lake City, the combined rate is approximately 7.75%. In some areas of Utah County, rates approach 8.85%. The multiple layers can make rate calculation tricky, but the resale exemption applies to all of them.

Use Tax

Utah imposes a use tax at the combined rate on goods purchased from out-of-state vendors when the seller does not collect Utah sales tax. Items purchased for resale are exempt from use tax if documented with a valid exemption certificate.

What Is Taxable in Utah?

Utah taxes most tangible personal property and certain services:

• Most physical goods are taxable
• Groceries are taxable at a reduced combined rate of 3% (1.75% state + 1.25% local floor)
• Prescription drugs are exempt
• Clothing is fully taxable
• Certain services are taxable, including admissions, laundry, and repair services
• Digital products are generally taxable, including downloaded software, music, and video
• Manufacturing equipment may qualify for exemptions under certain conditions

What Form Do You Need?

Utah uses Form TC-721, the Utah Exemption Certificate. This is the state's official form for documenting resale and other sales tax exemptions.

About Form TC-721

Form TC-721 is a multi-purpose exemption certificate that covers resale, government, and other qualifying exemptions. When claiming a resale exemption, select "Resale" as the exemption type.

Key fields include:

• Purchaser's name, address, and phone number
• Utah sales tax license number
• Type of exemption claimed (resale)
• Description of products being purchased for resale
• Purchaser's signature and date

Alternative Accepted Forms

Utah also accepts:

• The SST Certificate of Exemption (as an SST member state)

As an SST member, the SST certificate is valid in Utah alongside Form TC-721.

Where to Get the Form

Form TC-721 is available as a free PDF download from the Utah State Tax Commission website at tax.utah.gov. The SST Certificate of Exemption can be downloaded from the SST Governing Board website.

Who Needs a Utah Resale Certificate?

Any business purchasing tangible personal property for resale needs a Utah resale certificate. This includes:

Retailers buying inventory to sell through stores, online platforms, ski resort shops, farmers markets, or any other sales channel.

Wholesalers and distributors purchasing goods from manufacturers or importers for redistribution to retailers or other businesses.

Online sellers registered in Utah who buy inventory for resale through Amazon, eBay, Etsy, Shopify, or other platforms.

Manufacturers purchasing raw materials, components, and ingredients that become part of a finished product manufactured for sale.

Restaurants and food businesses buying food ingredients that will be prepared and sold as meals. Since Utah taxes groceries (even at a reduced rate), the full resale exemption on food ingredients provides meaningful savings.

Who Does NOT Qualify

• Consumers buying for personal use
• Businesses purchasing supplies, furniture, or equipment for internal operations
• Contractors buying materials for installation into real property (Utah treats contractors as consumers of construction materials)

How to Apply for a Utah Resale Certificate

Step 1: Register for a Utah Sales Tax License

You need an active Utah sales tax license before you can issue a valid Form TC-721. The Utah State Tax Commission handles registration.

What you need to register:

• Federal EIN or SSN
• Business legal name and DBA (if applicable)
• Business address and mailing address
• Type of business entity
• NAICS code for your business activity
• Description of products or services sold
• Expected start date
• Estimated monthly taxable sales

Registration is free. Apply online through the Utah OneStop Business Registration portal or directly through the Tax Commission's Taxpayer Access Point (TAP).

Processing time: Online applications are typically processed within 3 to 7 business days.

Step 2: Complete Form TC-721

Download the form from the Utah State Tax Commission website. Fill in your business details, select the resale exemption, enter your Utah sales tax license number, and describe the types of products you will purchase for resale.

Step 3: Provide the Certificate to Your Suppliers

Give the completed Form TC-721 (or SST certificate) to each vendor from whom you want to buy tax-free. The vendor keeps the certificate on file and does not charge sales tax on qualifying resale purchases.

Want help with the process? We handle everything from registration to certificate completion.

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Multi-State Considerations

Utah is a member of the Streamlined Sales Tax (SST) agreement, which simplifies multi-state compliance for businesses operating across state lines.

SST Membership

As an SST member, Utah accepts the SST Certificate of Exemption from buyers in other SST member states. If you already use the SST certificate in another state, the same format works in Utah.

Out-of-State Sellers

Utah's economic nexus threshold is $100,000 in sales or 200 transactions with Utah customers in the current or prior calendar year. If you meet either threshold, you must register and collect Utah sales tax.

Marketplace Facilitator Rules

Utah requires marketplace facilitators (Amazon, eBay, Walmart, Etsy) to collect and remit sales tax on behalf of third-party sellers. If you sell through a marketplace, the marketplace handles your Utah tax. Direct sales require your own Utah registration.

For more on multi-state compliance, see our multi-state resale certificate guide.

Common Mistakes with Utah Resale Certificates

Mistake 1: Miscalculating the Combined Rate

Utah's layered rate structure (state rate + mandatory local floor + optional local taxes) confuses businesses that are new to the state. The minimum combined rate is 6.1%, not 4.85%. When you make a non-exempt purchase, you pay the full combined rate for your location. Always verify the current combined rate for your specific jurisdiction.

Mistake 2: Confusing the Reduced Grocery Rate with a Full Exemption

Utah taxes groceries at a reduced combined rate of 3%, but this is not a full exemption. Some businesses mistakenly believe food is exempt in Utah. If you purchase food for resale, the resale exemption removes all sales tax (including the reduced grocery rate and local taxes), not just a portion.

Mistake 3: Using the Certificate for Equipment or Supplies

Buying office equipment, computers, vehicles, or supplies with a resale certificate when those items are for your business use is the most common audit finding. Utah auditors review purchase records and look for items that do not match the buyer's typical resale inventory.

Mistake 4: Failing to Report Use Tax on Non-Exempt Out-of-State Purchases

If you buy goods from an out-of-state vendor who does not collect Utah tax, you owe use tax on those purchases unless they qualify for an exemption. Many businesses miss this obligation on smaller online purchases.

Utah-Specific Rules You Should Know

Complex Combined Rate Structure

Utah's sales tax has multiple mandatory layers. The 4.85% state rate is just the starting point. A 1.25% mandatory local floor applies everywhere, and individual counties and cities add their own rates on top. This means there is no location in Utah where the rate is less than 6.1%. Businesses need to track the specific combined rate for each location where they make sales.

The Utah State Tax Commission publishes a quarterly rate table listing the combined rate for every jurisdiction in the state.

Grocery Tax

Utah taxes groceries at a reduced combined rate of 3% (1.75% state + 1.25% local floor). Prepared food is taxed at the full combined rate. For food businesses, the distinction between "grocery" items and "prepared food" matters for determining the correct tax rate on your retail sales.

Manufacturing Exemptions

Utah provides a partial sales tax exemption on certain manufacturing equipment. The details and qualifying criteria can be specific, so manufacturers should consult the Utah State Tax Commission for guidance on which equipment qualifies.

Taxpayer Access Point (TAP)

Utah's TAP portal is the online system for managing your sales tax account. You can file returns, make payments, view rate tables, and update your business information. All Utah sales tax license holders should maintain an active TAP account.

Audit Cycle and Record Retention

Utah typically audits businesses covering a 3-year period. Keep all Form TC-721 copies, purchase invoices, and sales records for at least three years after the return due date. Having complete and properly filled out exemption certificates on file is essential for audit defense.

How Much Can You Save?

With a minimum combined rate of 6.1% and rates reaching approximately 8.85%, the savings from a resale certificate are substantial.

Your actual savings depend on the combined rate at your location. Use our sales tax lookup tool to find the exact rate for your jurisdiction.

Utah Resale Certificate FAQs

Q: Does the Utah resale certificate expire? A: Utah does not print an expiration date on Form TC-721. The certificate is valid as long as your sales tax license is active. Sellers may request updated certificates periodically.

Q: Can I use the SST certificate instead of Form TC-721? A: Yes. Utah is an SST member state and accepts the SST Certificate of Exemption. Either form is valid.

Q: Is there a fee for a Utah sales tax license? A: No. Utah does not charge a fee for sales tax registration.

Q: Why is the minimum rate 6.1% instead of 4.85%? A: Utah has a mandatory 1.25% local floor that applies everywhere in the state, on top of the 4.85% state rate. The 6.1% combined minimum is the lowest possible rate in any Utah jurisdiction.

Q: Are digital products taxable in Utah? A: Generally, yes. Utah taxes most digital products, including downloaded software, music, movies, and e-books. If you sell digital products, you collect sales tax. If you purchase digital products for resale, the resale exemption applies.

Get Started with Your Utah Resale Certificate

Utah's growing economy and unique rate structure make the resale certificate a high-value tool for businesses buying inventory. With a minimum 6.1% combined rate everywhere in the state, every tax-free purchase adds up.

• Expert registration guidance
• Help completing Form TC-721 or SST certificate
• Ongoing compliance support

Get Your Resale Certificate -->

For more details on Utah's requirements, visit our Utah state page.

Utah's layered rate structure means your resale certificate savings are always at least 6.1% of your inventory costs, and often higher. Get registered, document your exemptions, and stay on top of the quarterly rate changes for each jurisdiction where you operate.

Related Articles

• What Is a Resale Certificate? - New to resale certificates? Start with the fundamentals.
• How to Calculate Sales Tax for Ecommerce - Utah's rate structure makes ecommerce tax calculation tricky.
• Understanding Sales Tax Nexus - Learn when you are required to register in Utah and other states.