Is digital advertising taxable in Utah?
From 2027-01-01, for large targeted advertising businesses. Utah SB 287 imposes an annual tax on targeted advertising entities that meet three size and concentration tests.
| Short answer | Taxable from 2027-01-01 |
|---|---|
| Effective date | Takes effect 2027-01-01. |
| Authority | Utah SB 287; Utah Code 59-35 |
| Last reviewed | 2026-09-18 |
Why
Utah SB 287 (Utah Code 59-35) taxes targeted advertising entities at the state sales tax rate. An entity is covered only if it has $1M or more in Utah targeted-advertising receipts, $100M or more in worldwide targeted-advertising receipts, and targeted advertising makes up 50% or more of its total gross receipts.
The base is a three-part conduct test: ad space sold through bidding, individualized data profiles used for delivery, and an interface where the viewer can access information or buy. The tax is apportioned by the share of impressions in Utah. It takes effect 2027-01-01.
Business vs. consumer buyers
The tax falls on the advertising entity. Buyer type does not change it.
Where the line is
- AgentTax does not calculate this tax.
How AgentTax classifies digital advertising
Selling digital or targeted advertising: ad space, ad targeting and delivery on digital interfaces. AgentTax does not calculate digital advertising taxes. They are separate gross receipts or excise taxes, not sales tax.
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Open the calculatorFrequently asked questions
- Who owes Utah's targeted advertising tax?
- Entities with $1M+ in Utah targeted-advertising receipts, $100M+ in worldwide targeted-advertising receipts, and targeted advertising at 50%+ of gross receipts, from 2027-01-01.
Related
- All Utah digital tax answers
- Is SaaS taxable in Utah? (full guide)
- Digital advertising: every state we cover
- Is digital advertising taxable in Illinois?
- Is digital advertising taxable in Maryland?
Further reading on the AgentTax blog
Sources
- Utah SB 287
- Utah Code 59-35
This page is for informational purposes only and is not tax, legal, or accounting advice. It reflects AgentTax's current interpretation of evolving law, which can change. Consult a qualified tax professional before making compliance decisions. Positions on this page come from the AgentTax tax policy registry (v1.24.0); see our methodology.