By the Rampart Title editorial team · October 07, 2026
If you live in your Utah home as your primary residence, you only pay property tax on 55% of its market value. The other 45% is exempt. It is one of the most valuable tax benefits a Utah homeowner has, and it is a big reason second homes and rentals in Utah pay noticeably more tax than owner-occupied homes of the same value.
How the exemption works
Your county assessor sets the market value of the home. For a primary residence, 45% of that value is exempt, and the tax rate is applied to the remaining 55%. On a $450,000 home, that means you are taxed as if the home were worth $247,500.
Who qualifies
The exemption applies to the primary residence of the owner or of a tenant who lives there as their primary residence. Vacation homes, second homes and short-term rentals do not qualify. Counties may ask you to sign a residential property declaration confirming how the home is used, especially after a sale.
What happens when you buy
- The exemption follows the use of the home, not the owner. If the seller lived there, the current year’s tax bill probably already reflects it.
- If you buy a home that was a rental or second home and you will live in it, contact the county assessor so the exemption is applied going forward.
- If you buy a former primary residence to use as a vacation home or rental, expect the tax bill to rise because the exemption no longer applies.
Why it matters at closing
Utah property taxes are paid in arrears, so at closing the seller credits the buyer for taxes from January 1 to the closing date. That proration is based on the current bill, which may include the exemption. If the property’s use is changing, plan for a different bill next year.
