Utah to Set 6 Percent Interest Rate on Unpaid Taxes
Taxpayers with unpaid balances will see a 6 percent interest rate apply to their accounts throughout the 2027 calendar year.
Updated on Oct. 30, 2026 in Taxes
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The Utah Tax Commission has set the interest rate on unpaid taxes at 6 percent for the 2027 calendar year. This rate applies to overdue tax balances for Utah residents and businesses throughout that entire year.
Why it matters
Understanding this interest rate is essential for Utah taxpayers to calculate the total cost of any outstanding tax liabilities. Because interest accrues daily based on the time since the original due date, keeping this figure in mind helps households prioritize their tax payments effectively.
The Utah Tax Commission established a 6 percent annual interest rate for unpaid taxes during the 2027 calendar year. This interest is applied to balances based on the number of days past the original due date.
The players
Utah Tax Commission
The state authority responsible for tax administration, policy enforcement, and the collection of state revenues from Utah households.
The details
Interest on unpaid Utah taxes is calculated daily, meaning the total amount owed increases for every day a balance remains outstanding. When a payment is made, the state applies those funds in a specific order: first toward penalties, then toward accrued interest, and finally toward the underlying tax principal. Taxpayers facing outstanding balances should track these daily accruals to minimize the total amount owed over the year.
Timeline
The 6 percent tax interest rate is effective for the 2027 calendar year.
Money Landscape
The 6 percent rate is set according to the state's annual administrative cycle for determining interest on overdue tax balances. This figure serves as the standard cost for carry-over liabilities throughout the coming year.
Households with unpaid tax balances should prepare for the 6 percent annual interest charge to begin accruing on January 1, 2027. Review your current tax status and discuss potential payment plans with a qualified tax professional if you anticipate difficulty meeting upcoming deadlines.
The takeaway
Taxpayers should note that Utah applies incoming payments to penalties before interest, which can prolong the time interest accrues on the remaining principal. Consult with a qualified tax professional to review your specific balance and payment strategy before the new year.
Further reading
For more information on state tax obligations, visit Taxes.
Source note: This article includes information reported by Bloombergtax.
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