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Business Costs

Utah is known for its strong economy and business-friendly climate. Utah’s economy expanded by 2% per year from 2008-2013, the fourth highest growth rate in the country. The growing economy, in combination with Utah’s business costs and regulatory environment, contributed to Utah ranking 1st in the nation as a pro-business state (Pollina Corporate, 2013), 1st for economic outlook (ALEC-Laffer, 2013), and 1st for business and careers (Forbes Magazine, 2014). Utah is a right-to-work state.

Additionally, Ogden City offers a very low cost of doing business. Forbes Magazine (2014) ranked Ogden the 11th best place for business in careers, due in large part to business costs that are 24% lower than the national average. Taxes, insurance rates, and healthcare costs are very low, as are real estate and utility costs.

Tax Rates

Tax Type State Local Total
Corporate Income Tax 5% 0% 5%
Property Tax N/A 1.8% 1.8%
Personal Property Tax N/A 1.8% 1.8%
Personal Income Tax (any amount) 5% 0% 5%
Sales Tax 5.25% 1.6% 6.85%

Insurance & Healthcare

The median value of workers’ compensation premiums paid in Utah is $1.31 per $100 of payroll, which is among the lowest in the country (Insurance Journals, 2014). More information is available from the Utah Insurance Department.

Unemployment insurance rates in Utah are calculated using three factors: benefit ratio, reserve factor, and social cost. The reserve factor and social cost are determined by the state, but the benefit ratio allows employers to manage their unemployment costs. In 2016, the minimum tax rate was 0.3% and the maximum was 7.3%. Employers are only liable for taxes on wages paid to each employee up to the taxable wage base ($32,200 in 2016). More information is available from the Utah Department of Workforce Services.

For employer-based health insurance, the average family premium per enrolled employee in Utah is below the national average. The portion of the premium contributed by the employer in Utah is slightly higher than the national average. (Kaiser Family Foundation, 2013)