Utah Restaurant Tax and Local Tourism Taxes: What Hospitality Businesses Collect
Utah Restaurant Tax and Local Tourism Taxes: What Hospitality Businesses Collect
If you run a restaurant, bar, caterer, hotel, or short-term rental in Utah, the sales tax on your receipt is only part of the picture. Many Utah counties add a restaurant tax on prepared food, which is often called a county tourism tax, and lodging is taxed separately under the transient room tax. Both sit on top of the state and local sales tax. This guide covers which taxes apply, what the published rates look like, and how the Utah State Tax Commission expects you to register and collect them.
Informational only: This guide is general information, not legal or tax advice. Rates change, and your obligations depend on your location, your business type, and what you sell. Confirm your situation with the Utah State Tax Commission and with a qualified CPA or attorney before you set prices, register, or file.
The three taxes a Utah food or lodging business may collect
Most Utah hospitality businesses deal with three layers of tax. Which ones apply depends on what you sell and where you sell it.
- State and local sales tax. The Utah state sales tax rate is 4.85%. Combined state and local rates run from 6.35% to 9.55% depending on the jurisdiction, and up to 10.05% in some special districts.
- County restaurant (tourism) tax. In counties that levy it, prepared food is taxed at a higher rate than the combined sales rate for that location.
- Transient room tax. Stays of fewer than 30 consecutive days are taxed at a county rate. Some resort communities add a resort communities tax on top.
The restaurant tax and the transient room tax are not optional add-ons you can ignore because the state rate is low. They are collected through the Tax Commission's online portal, TAP, so you need the registration in place before your first taxable sale.
State sales tax: the starting point
The state sales tax rate is 4.85%. Grocery food is taxed at a 1.75% state rate, and the combined grocery food rate is 3.0%. Restaurant meals are prepared food, not grocery food, so do not apply the grocery rates to your menu. If you also sell packaged goods, such as bottled sauces or coffee beans, ask the Tax Commission how each item is classified.
Any seller with an established presence in Utah needs a Utah Sales Tax License from the Tax Commission. The sales tax account is set up on TAP at tap.tax.utah.gov. This is a tax registration. It is separate from the business license your city or county issues, which is covered below.
County restaurant (tourism) tax
This is the rate most owners underestimate. On the Tax Commission rate chart in effect April 1, 2026, the prepared-food rate is 1.00 point above the combined sales rate in every county row. Here are three examples from that chart:
| Location | Combined sales rate | Prepared-food (restaurant) rate |
|---|---|---|
| Salt Lake City | 8.45% | 9.45% |
| Moab | 9.35% | 10.35% |
| Park City | 9.55% | 10.55% |
The practical lesson is that you cannot charge one Utah restaurant rate across all locations. A restaurant in Moab and one in Salt Lake City charge different rates on the same menu, and a caterer or food truck may need to confirm which location controls the rate for a given sale. Ask the Tax Commission that question directly rather than guessing.
Transient room tax for hotels and short-term rentals
The utah transient room tax applies to lodging stays of fewer than 30 consecutive days. That covers hotels, motels, and short-term rentals booked for a night, a weekend, or a week. Stays of 30 or more consecutive days fall outside the tax, so a month-long furnished rental is treated differently from a three-night booking. If your guests stay in patterns that could cross that line, document how each booking is structured and confirm the treatment with the Tax Commission.
On the same April 1, 2026 chart, the transient room rate in most counties runs about 5.57 points above the combined sales rate. The county add-ons vary, and the chart lists Salt Lake County at 6.07 points, Washington County at 5.32 points, and Summit County at 4.07 points. Treat 5.57 as an approximate pattern, not a formula. Use the row for your own city and county, because the published totals do not all follow the same arithmetic. Here are three examples:
| Location | Transient room rate on the chart |
|---|---|
| Salt Lake City | 15.52% |
| Moab | 16.42% |
| Park City | 14.62% |
Lodging also carries sales tax, and the transient room tax is applied in addition to it. Do not assume a single rate for every property you manage, because two properties a few miles apart can fall in different county or city tax areas.
Resort communities tax
Some resort communities add a resort communities tax on top of the transient room rate. The add-ons on the current chart are:
- Park City: 1.60 points
- Moab: 1.60 points
- Torrey: 1.10 points
- Big Water: 1.10 points
If you operate a lodging property in one of these communities, the resort add-on applies in addition to the county transient room rate. Confirm with the Tax Commission that the property's address falls inside the taxing area, because a property just outside a town boundary may be treated differently.
Registering and licensing your business
Utah has no statewide general business license. Registering with the state creates your legal entity, and the local license is a separate step. Here is the order most owners follow:
- Form the entity, if you have one. An LLC files a Certificate of Organization with the Utah Division of Corporations and Commercial Code, Utah Department of Commerce, for a $59 filing fee. A corporation files Articles of Incorporation for the same $59 fee. Both entities file an annual renewal of $18 each year, with a $10 late fee if the renewal is late. File through the Utah Business Registration System. This is a registration, not a license, and it does not authorize you to collect any tax.
- Register an assumed name (DBA), if you operate under a different name. The assumed name is filed with the state Division, not the county. It costs $22 to register. Check the Division's DBA page for the current term and renewal fee.
- Get your Tax Commission sales tax license. Set up the account on TAP before your first sale. Confirm with the Tax Commission how the prepared-food and transient room taxes are enrolled on your account.
- Get your local business license. Apply to the city or town where your business is located. If you are outside city limits, the county issues the license. A city license does not transfer to another city, so if you move, you need a new license from the new city.
- Check alcohol and occupational requirements. If you serve alcohol, the liquor agency is the Department of Alcoholic Beverage Services (DABS), and you should confirm its requirements directly with that agency. Some professions require an occupational license from the Division of Professional Licensing.
Health permits for food service are issued through local health authorities and are outside the scope of this guide, so confirm those requirements with your local health department.
Rates change, so check the chart before you price
The Tax Commission republishes its rate chart quarterly, so the figures in this guide are a snapshot from the April 1, 2026 chart. Before you set menu prices or a nightly lodging rate, pull the current chart from the Tax Commission website, find your city and county row, and confirm the figures. Build a quarterly check into your calendar, and update your point-of-sale and booking systems the same day the new chart takes effect.
Common mistakes Utah hospitality owners make
- Charging only the state rate. The 4.85% state rate is only one part of the tax on a meal.
- Using the combined sales rate for restaurant sales. The prepared-food rate is 1.00 point higher in every county row on the April 2026 chart.
- Applying one Utah rate to every location. Park City, Moab, and Salt Lake City each have a different rate.
- Treating a state filing as a business license. Your Certificate of Organization or DBA filing does not authorize you to operate in a city or county.
- Carrying a city license into a new city. A city license does not transfer, so a move requires a new application.
- Missing the resort communities tax. Park City, Moab, Torrey, and Big Water each add a resort tax on top of the transient room rate.
- Taxing every rental the same way. Stays of 30 or more consecutive days are outside the transient room tax.
Questions to confirm with the Tax Commission
Some situations are not settled by a chart alone. Put these questions to the Tax Commission in writing before you open or change your pricing:
- Which sales count as prepared food at the restaurant rate, including takeout, delivery, catering, and bar sales.
- Whether a short-term rental needs its own transient room tax registration or is covered by your existing TAP account.
- Which location controls the rate for a caterer, food truck, or business that sells in several places.
- How often you must file, and when returns and payments are due on your TAP account.
Next steps
Start by confirming your city and county on the current rate chart, then register your sales tax account on TAP before you take your first taxable sale. Set up your point-of-sale or booking system with location-specific rates, not a single statewide figure. If your business has multiple locations, owns rental property, or serves alcohol, work with a CPA who knows Utah hospitality taxes, and talk to an attorney about your entity and liability questions. This guide is informational and is not a substitute for professional advice.