Utah Short-Term Rental Tax Guide for Airbnb Hosts (2025)
Utah has built one of the nation's most compelling short-term rental investment stories. The state is home to five national parks (Zion, Bryce Canyon, Arches, Canyonlands, Capitol Reef), world-class ski resorts in Park City and the Wasatch Mountains, and the red rock desert landscapes of Moab that have made it one of the most photographed places in America. Add St. George's year-round warmth and proximity to Las Vegas, and Utah's STR demand is extraordinary.
Fortunately, Utah's tax structure is relatively investor-friendly: a flat 4.65% income tax, sales tax on lodging around 6.1%, and conformity with federal bonus depreciation rules. This guide covers the full tax landscape for Utah Airbnb hosts.
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Utah STR Tax Rates
Utah short-term rentals (stays under 30 days) are subject to state sales tax plus county/city transient room taxes. Airbnb collects most of these taxes for qualifying hosts.
| Market / Tax Type | Rate | Notes |
|---|---|---|
| UT State Sales Tax | 4.85% | Base state rate |
| County/City Sales Tax | 1–2.5% | Varies; part of combined rate |
| Transient Room Tax (county) | 4–7% | Varies by county |
| Park City / Summit County combined | ~12–13% | Includes all applicable taxes |
| Moab / Grand County combined | ~11–12% | Includes all applicable taxes |
| St. George / Washington County combined | ~10–11% | Includes all applicable taxes |
| UT State Income Tax | 4.65% flat | On net rental income; Form TC-40 |
Utah State Sales Tax
Utah's state sales tax base rate is 4.85%. Combined with county and city levies, most Utah locations have combined sales tax rates in the 7–8% range. Short-term lodging is subject to sales tax, and Airbnb is a registered marketplace facilitator in Utah that collects and remits these taxes for qualifying hosts.
Additionally, Utah counties impose a Transient Room Tax (TRT) specifically on short-term lodging. This tax is collected on top of the regular sales tax and varies by county. Airbnb typically collects and remits TRT as well, but hosts should verify by checking their Airbnb tax settings and confirming directly with the relevant county.
Utah State Income Tax
Utah has a flat 4.65% income tax rate applicable to all income, including net rental income. This is reported on Utah Form TC-40. Utah generally conforms to the federal Internal Revenue Code for most provisions, including depreciation rules and bonus depreciation elections.
Utah STR Licensing
Utah does not have a statewide STR licensing law. Regulation occurs at the county and city level:
Park City / Summit County
Park City has a mature STR licensing system with permit fees, safety inspections, and annual renewal requirements. The city's STR market is large and well-organized, with professional property management companies serving most investment properties.
Moab / Grand County
Grand County has implemented STR permits with caps in certain areas due to housing concerns. Moab city limits have their own ordinance. The cap system means legal permits are valuable — properties with existing permits may command a premium at purchase.
St. George / Washington County
St. George and surrounding Washington County have STR regulations requiring business licenses and compliance with zoning ordinances. St. George's ordinance distinguishes between residential and resort zones for STR permissibility.
Utah's Top STR Markets
Park City
Park City is Utah's premier ski STR market and one of the nation's finest. With three interconnected ski resorts (Park City Mountain, Deer Valley, and Woodward Park City), world-class dining, and the Sundance Film Festival, Park City generates strong year-round demand. Winter ADRs of $400–$800/night for luxury properties; summer rates of $250–$450/night during mountain bike and festival season.
Moab
Moab is the gateway to Arches and Canyonlands National Parks, plus world-renowned mountain biking trails and the Colorado River. Spring (March–May) and fall (September–October) are peak seasons; summer can be extremely hot. ADRs of $200–$350/night for well-positioned properties.
St. George / Zion Area
St. George benefits from year-round demand (mild winters) and proximity to Zion National Park (30 miles) and Bryce Canyon. The city is one of the fastest-growing in the U.S., driving both STR demand and property value appreciation. ADRs of $150–$250/night.
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Key Deductions for Utah STR Hosts
Desert Environment Deductions
- HVAC maintenance: Air conditioning is critical in Utah's desert summers; service contracts and unit replacement are deductible
- Water costs: Utah is arid; water supply systems, filters, and conservation measures are deductible operating costs
- Solar panels: Many Utah properties use solar for energy efficiency; eligible for federal solar investment tax credit (ITC) in addition to depreciation
- Dust and desert air filters: HVAC filter replacement is accelerated in desert environments; routine maintenance deduction
Ski Property Deductions (Park City)
- Ski equipment storage and seasonal maintenance
- Snow removal contracts
- Hot tub maintenance (a near-necessity in ski markets)
- Ski boot dryers, boot warmers, and amenities provided for guests
Standard Rental Deductions
- Depreciation: 27.5-year residential schedule (Utah conforms to federal)
- Property management fees
- Cleaning and turnover services
- Guest supplies and welcome kits (trail maps, park passes provided for guests)
- Utilities proportional to rental use
- Utah property taxes and mortgage interest (proportional to rental use)
- Insurance (homeowner, liability, flood if applicable)
- Marketing and platform fees
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Disclaimer
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws and local ordinances change frequently. Consult a qualified CPA or tax attorney familiar with Utah STR regulations before making tax decisions. Rates and rules cited reflect information available as of the publication date and may have since changed.