Free guide for contractors
Do contractors charge sales tax in Utah?
General information, not tax advice. Tax rules change and depend on the details of each job. Confirm how they apply to your business with your accountant or the state's revenue department before relying on them.
UT Utah
Usually no tax on the invoiceNo, for real property improvements. Utah says the contractor's charge to the homeowner is not taxable.
Utah's Tax Commission treats a sale of a real property improvement as not taxable. The contractor pays tax on materials when buying them, and the charge to the homeowner is not taxable.
On a contract to furnish and install, the contractor may not show the tax, or any amount that appears to be tax, as a separate line on the invoice or contract.
Labor to service, repair, renovate or improve real property is exempt. These points come from Tax Commission Publication 42 (revised July 2026).
It turns on: whether the work improves real property or repairs an appliance; whether items are sold without installation.
Watch out for
- Repairs to a dishwasher, freezer, microwave, refrigerator, stove, washer, dryer or similar item are taxable, even when it is built in (Utah Publication 42).
- Items sold without being installed are taxable (Utah Publication 42).
“Since sales of real property improvements are not taxable, the contractor's charge to the homeowner is not taxable.”Utah Publication 42