Updated October 4, 2026. Quick answer: Yes. Utah taxes a gain as income at one flat rate; the TC-40 instructions tell filers to report federal adjusted gross income “exactly as they appear on your federal return”. The rate is 4.5% for 2025 and 4.45% for 2026 under S.B. 60, which says “This bill takes effect on May 6, 2026”.
Selling your home? How the state taxes the profit, from its own tax documents: Does Utah tax the profit from selling your home?.
The same question for dividends and interest: does Utah tax dividends and interest.
How Utah treats capital gains
| Item | What the documents say |
|---|---|
| Treatment | Taxed as income at the flat rate; the instructions print no separate rate for gains |
| Rate for 2025 | 4.5% (Utah Code 59-10-104, effective January 1, 2025) |
| Rate for 2026 | 4.45%, retrospective to taxable years beginning on or after January 1, 2026 (S.B. 60, 2026 General Session) |
| Credit | The TC-40 instructions list a capital gain transactions credit among the nonrefundable credits; the instructions read do not give its terms |
A $50,000 long-term gain
For a gain realized in 2026, the Utah tax is computed as $50,000 x 4.45% = $2,225.
For a gain realized in 2025 it is computed as $50,000 x 4.5% = $2,250.
What changes in 2026
S.B. 60 lowers the rate from 4.5% to 4.45% for taxable years beginning on or after January 1, 2026.
Federal rules
The state’s treatment sits on top of the federal one. The IRS explains the federal tax on gains in Topic no. 409, Capital Gains and Losses and Publication 550, Investment Income and Expenses.
Related: whether Utah taxes pensions, how Utah taxes retirement income, the capital gains tax by state table, and the federal capital gains tax calculator.
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Answer againSources
- Utah Code 59-10-104 (effective 1/1/2025): https://le.utah.gov/xcode/Title59/Chapter10/C59-10-S104_2025010120250507.pdf
- S.B. 60 Income Tax Rate Amendments (enrolled): https://le.utah.gov/Session/2026/bills/enrolled/SB0060.pdf
- 2025 Utah TC-40 Instructions: https://files.tax.utah.gov/tax/forms/current/tc-40inst.pdf
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.