How Utah property tax works and the 45% residential exemption

Who sets your property tax?

Several bodies play different roles.

• The county assessor values the property each year at market value as of January 1 (Utah Code § 59-2-103(2); Tax Commission briefing, 2023).
• Each taxing entity (school district, city, county, water district and others) sets a rate. The county auditor calculates each entity’s certified rate: the base rate that raises the same revenue as the prior year (Salt Lake County Auditor). An entity that wants more revenue must hold a public “Truth in Taxation” hearing.
• The county treasurer sends the bill and collects the tax.

Your bill is the sum of each entity’s rate applied to your taxable value. Taxable value is market value minus the exemption.

How does the 45% residential exemption work?

Utah allows a 45% reduction in the value of residential property (§ 59-2-103(3)). The Salt Lake County Auditor puts it this way: you pay tax on 55% of the home’s value.

After you buy, the assessor sends a notice if the ownership changes. You must return a signed Residential Property Declaration within 90 days of the notice. If you do not file, the assessor sends a second notice, and the exemption ends if you still do not file within 30 days (§ 59-2-103.5(11)). Some counties instead require an application before applying the exemption; ask your county assessor. A county cannot accept a first application filed after the later of September 15 or 45 days after the valuation notice (§ 59-2-103.5(6)).

Is there a cap on how fast the value can rise?

The sources read describe none. State law requires the assessor to value each property at market value each year. What Utah limits is the revenue of each taxing entity: certified rates are set to bring in about the same revenue as the year before, apart from new growth, and entities that want more must hold a Truth in Taxation hearing (Tax Commission briefing, 2023; Salt Lake County Auditor). Because rates are reset to raise about the same revenue, a rise in values across a county does not by itself raise an entity’s income. Your own bill can still rise if your home’s value rises faster than others.

What does Salt Lake City charge?

Rates are set by tax area, which is the group of taxing entities that serve your address. The Salt Lake County Auditor published these 2025 rates for tax area 01A, which the county labels as the Salt Lake City code area. Other areas inside the city can differ. A rate of 0.002333 means $2.333 per $1,000 of taxable value.

Example: a $500,000 home in Salt Lake City

This is an example with an assumed value, not the median price. Assume a $500,000 market value, a primary residence with the exemption, and the 2025 rates above.

• Exemption: 45% × $500,000 = $225,000
• Taxable value: $500,000 − $225,000 = $275,000
• Tax: $275,000 × 0.009240 = $2,541.00 a year

Without the exemption, the same rate on $500,000 gives $4,620.00. The exemption saves $2,079.00 in this example. For the costs you pay at closing, including the prorated tax, see closing costs in Utah. For the city picture, see the Salt Lake City guide.

How do you appeal a valuation?

The county auditor must mail a Notice of Valuation and Tax Changes by July 22 each year (§ 59-2-919.1). It shows the assessor’s value, the taxable value, the tax for each entity and how to appeal. You may apply to the county board of equalization on or before the later of September 15 or the last day of the 45-day period beginning on the notice date (§ 59-2-1004(3)). Include your estimate of the market value and your evidence. The board must decide within 60 days of your application unless the Tax Commission approves an extension. If you disagree, you can go on to the Tax Commission under § 59-2-1006.

When is the tax due?

The penalty for delinquent tax is 2.5% or $10, whichever is greater, but 1% (or $10) if you pay everything owed by January 31. After January 31, interest runs from January 1 at 6% plus the federal funds target rate, never less than 7% or more than 10% (§ 59-2-1331). Salt Lake County lists veterans, blind, age-and-income, indigent and hardship tax relief programs, with a September 1 statutory filing deadline at the Treasurer.