Updated September 5, 2026. Quick answer: Utah taxes pensions, 401(k), IRA distributions, and Social Security as ordinary income with no blanket exclusion, but it offsets some of that tax with a nonrefundable retirement credit worth up to $450 per person for people born before 1953, and separately fully offsets tax on military retirement pay through its own credit. The retirement credit phases out as income rises and cannot be combined with the Social Security or military retirement credits.
Confidence note: high. This page is scoped to pension, IRA and 401(k) taxation specifically. For the state’s full retirement-tax picture (Social Security, tax rates, estate and probate), see how Utah taxes retirement income generally.
How pensions and retirement-account withdrawals are taxed
| Public (state/local government) pensions | Utah state and local government pensions are included in taxable income like any other income. A retiree born on or before December 31, 1952 may claim the nonrefundable retirement credit against tax owed on this income. |
|---|---|
| Private (employer) pensions | Private employer pensions are fully taxable as ordinary income, with the same nonrefundable retirement credit available to eligible older filers. |
| Federal government pensions (FERS/CSRS) | Federal government pensions are fully taxable as ordinary income, with the same nonrefundable retirement credit available to eligible older filers. |
| Military retirement pay | Utah effectively fully exempts military retirement pay and related Survivor Benefit Plan payments through a nonrefundable tax credit under Utah Code sec. 59-10-1043, enacted by Senate Bill 11 in 2021 and effective for tax year 2021 forward, which offsets the tax on that income. |
| IRA and 401(k)/403(b) distributions | IRA and 401(k) distributions are fully taxable as ordinary income. A retiree born on or before December 31, 1952 may apply the nonrefundable retirement credit against tax owed on this income. |
| General retirement-income exclusion | Utah’s general mechanism is a nonrefundable retirement credit rather than an income exclusion: up to $450 per qualifying individual (up to $900 on a joint return where both spouses qualify) for those born on or before December 31, 1952, reduced by 2.5 cents for each dollar of modified adjusted gross income above $25,000 for single filers, $32,000 for married filing jointly, head of household, or qualifying surviving spouse, or $16,000 for married filing separately, under Utah Code sec. 59-10-1019. A taxpayer cannot claim this retirement credit in the same year as the Social Security credit or the military retirement credit. |
Coordinate this with your overall retirement plan
An adviser can help weigh how much of a pension or IRA withdrawal to take this year, whether a Roth conversion makes sense before or after a move, and how state tax interacts with the rest of your plan, but that does not replace the numbers in your own return.
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Social Security
Utah includes Social Security benefits in taxable income but offers a separate nonrefundable Social Security tax credit under Utah Code sec. 59-10-1042 that can offset some or all of the resulting tax, phased out at higher incomes. Social Security has its own rules in every state; see the full breakdown in how Utah taxes retirement income generally.
Statute and sources
Governing citation: Utah Code sec. 59-10-1019 (retirement credit); sec. 59-10-1043 (military retirement credit).
- Utah State Tax Commission, TC-40A Supplemental Schedule Instructions
- Utah State Legislature, S.B. 11, Military Retirement Tax Amendments (2021)
Read September 5, 2026.
Related: how Utah taxes retirement income generally · does Utah tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.