Utah Guide for Canadians

Quick Facts

State Income Tax	Flat 4.5% rate (reduced from 4.55% in 2025)
Sales Tax	4.85% state + local (average 6.96%)
Driver's License Grace Period	6 months for residents
Residency Requirement for Tax	Utah domicile or 183+ days
Vehicle Registration Deadline	60 days after establishing residency
REAL ID Deadline	May 7, 2025 for domestic flights
Enhanced Driver's License	Not available

First 90 Days Checklist

Week 1-2: Essential Documents & Registration

• Register with USCIS if staying 30+ days (required by April 11, 2025)
• Gather required documents for driver's license
• Open US bank account
• Set up Utah mailing address

Week 3-4: Official Registration

• Apply for Utah driver's license (within 6 months)
• Complete knowledge test, vision screening, and road test
• Begin vehicle registration process (within 60 days)
• Register to vote (if eligible)

Month 2-3: Establishing Residency

• Update address with Canadian financial institutions
• Complete vehicle registration and titling
• Establish Utah ties and connections
• Research healthcare options and insurance

Driver's License & Vehicle Requirements

For Canadian Citizens

Required Documents:

• Valid unexpired foreign passport with valid U.S. entry marking
• Social Security Number document or proof of non-work status exemption
• Two proofs of Utah residency with current address
• USCIS/DHS current documents for non-citizens

Testing Requirements:

• Knowledge test required for all new applicants
• Vision screening required
• Road skills test required (15-30 minutes) - Utah does not accept foreign licenses
• SAVE verification required for all non-U.S. citizens

REAL ID Option:

• Available for qualifying non-citizens with proper documentation
• Required for domestic air travel after May 7, 2025
• Enhanced Driver's License not available in Utah
• Passport required for international travel

Important Notes:

• 6-month grace period to get Utah license after establishing residency
• SAVE verification process may delay issuance
• Must present original documents - no copies accepted
• Properly registered and insured vehicle required for road test

Vehicle Registration

• Register within 60 days of establishing residency
• Must obtain Utah title before registration
• Registration fees based on vehicle age and value
• Utah insurance required for registration
• Annual registration renewal required

Tax & Residency Considerations

Utah State Tax Structure

• **Flat income tax** rate of 4.5% (reduced from 4.55% in 2025)
• **Sales tax** 4.85% state + local (average 6.96%)
• **Very low property taxes** (average effective rate around 0.6%)
• **No inheritance or estate tax**
• **Business-friendly** environment with flat 4.5% corporate tax

Establishing Utah Tax Residency

Utah residency is based on domicile or physical presence:

• Domiciled in Utah (intent to make permanent home)
• Present in Utah for 183+ days during the tax year
• Utah driver's license and voter registration help establish domicile
• Retirement income taxed at flat 4.5% rate with potential credits

Documentation to Establish Residency

• Utah driver's license and voter registration
• Bank accounts and utility bills in Utah
• Employment or business activities in Utah
• Property ownership or long-term lease agreements
• Professional licenses and club memberships

Tax Benefits

Utah offers one of the most favorable tax climates in the US with a simple flat income tax rate, extremely low property taxes, and reasonable sales tax. The state has been consistently cutting taxes and ranks highly for business competitiveness.

Religious Cultural Considerations

Utah has a predominantly LDS (Mormon) culture which influences local laws and social norms. Some alcohol sales restrictions apply, and Sunday business hours may be limited in some areas.

US Federal Tax Implications for Canadians

Important: Under the Substantial Presence Test, you may be considered a U.S. resident for tax purposes.
New Requirement: Canadians staying 30+ days must register with USCIS by April 11, 2025.
Recommendation: Consult a cross-border tax professional.

Healthcare Considerations

Insurance Options

• Utah has not expanded Medicaid (limited eligibility for non-citizens)
• Travel insurance strongly recommended
• Consider US health insurance if staying permanently
• Quality medical facilities in Salt Lake City, Ogden, and Provo

Prescription Medications

• Bring adequate supply from Canada
• Understand prescription transfer requirements
• US prices often higher than Canadian prices
• Good pharmacy coverage in urban areas

Healthcare Access

• Excellent healthcare facilities in Wasatch Front urban corridor
• Intermountain Healthcare is the dominant health system
• University of Utah Hospital provides specialized care
• Limited healthcare options in rural areas

Special Considerations for Snowbirds

New US Registration Requirements (2025)

• Canadians staying 30+ days must register with USCIS
• Registration required by April 11, 2025
• Print and carry latest I-94 as proof of legal entry
• Failure to register may affect future US travel

Maintaining Canadian Ties

• Keep principal residence in Canada
• Monitor days in U.S. for tax reasons (183-day rule)
• Maintain Canadian insurance & banking relationships
• Utah's 183-day rule requires careful tracking

Property Considerations

• Property values vary dramatically by location (Park City vs. rural areas)
• Extremely low property tax rates throughout the state
• Various local tax exemptions available
• Impact on Canada's principal residence exemption

Climate & Lifestyle Factors

• High altitude desert climate with four distinct seasons
• Cold, snowy winters ideal for skiing and winter sports
• Hot, dry summers perfect for outdoor activities
• Air quality can be poor in Salt Lake Valley during winter inversions

Outdoor Recreation Paradise

• World-class skiing at resorts like Park City, Deer Valley, Alta
• Five national parks within the state (Big Five)
• Extensive hiking, camping, and outdoor recreation opportunities
• Mountain biking, rock climbing, and winter sports

Travel Documentation

• Ensure passport validity (6+ months remaining)
• Consider Global Entry/NEXUS for easier border crossings
• Enhanced Driver's License not available in Utah
• I-94 registration now required for 30+ day stays

Mountain West Lifestyle

Utah offers unparalleled outdoor recreation opportunities with world-class skiing, five national parks, and stunning mountain scenery. The state combines excellent tax benefits with a healthy, active lifestyle in a business-friendly environment.

Cultural and Environmental Challenges

High altitude, dry climate, and air quality issues (especially winter inversions) can be challenging. The predominant LDS culture may feel restrictive to some, and alcohol laws are more restrictive than most states.

Key Contacts & Resources