Utah Property Taxes for Homebuyers: The 45% Primary Residential Exemption Explained
When buyers sit down with me to talk about a monthly payment, most of the attention goes to the interest rate and the purchase price. Property taxes usually get a quick nod and then everyone moves on. But in Utah, there's one property tax rule that can make a real difference in what you pay every year, and a lot of buyers have never heard of it: the primary residential exemption.
I'm Alex Hernandez, a mortgage loan officer with Guild Mortgage here in St. George. In this guide I'll explain how the exemption works, who qualifies, what's changing starting in 2027, and what you should do after you close on a home in Washington County or anywhere else in Utah so you don't miss out on it.
What Is Utah's Primary Residential Exemption?
Utah law gives qualifying primary residences a 45% exemption on their market value. According to the Utah State Tax Commission, this comes from Utah Code section 59-2-103, and it means your home is taxed on only 55% of its fair market value instead of 100%.
That's not a small discount. It's one of the biggest reasons owning the home you live in is treated differently from owning a vacation cabin or a short-term rental here.
A simple example from Washington County
The Washington County Assessor uses this example on its website, based on a $350,000 market value and an illustrative 1.1% tax rate:
- With the exemption: $350,000 x 55% = $192,500 taxable value. $192,500 x 1.1% = $2,117.50 in property tax.
- Without the exemption: $350,000 x 1.1% = $3,850 in property tax.
That's a difference of about $1,700 a year in the county's own example. Actual tax rates vary by location and taxing district, so your number will be different, but the point stands: the exemption can change your yearly tax bill, and because most buyers pay taxes through their mortgage escrow, it changes your monthly payment too.
Who Qualifies for the Exemption?
The Tax Commission defines a primary residence as a dwelling that's occupied as a primary home for at least 183 consecutive days in a calendar year by either the owner or a full-time tenant. Here's what that looks like in practice.
Owner-occupied homes
If you buy a home and live in it as your main residence, it should qualify. This is the situation for most of the buyers I work with, whether they're using an FHA, conventional, VA, or USDA loan.
Long-term rentals
Here's something that surprises investors: a home rented full-time to a tenant who lives there as their primary residence can also qualify. The Tax Commission says rental owners need to submit a residential declaration signed by all owners, and the county assessor may ask for a copy of the lease or your most recent federal tax schedule showing rental income or loss. If you're thinking about buying a rental, a DSCR loan is one financing option worth learning about, and the exemption is worth factoring into your numbers.
What doesn't qualify
Washington County is clear that vacation homes, cabins, time-shares, and other transitory housing don't qualify. In a place like St. George, where a lot of homes are used as second homes or nightly rentals, that matters. If you're buying a getaway property, plan on paying tax on the full market value.
One per household
Only one primary residential exemption can be claimed per household in Utah. The Tax Commission describes a household as a married couple and their dependent children. If a household lives in more than one home during the year, the county assessor decides which one is the primary residence.
The one-acre limit
Washington County notes that the exemption applies to the home and up to one acre of land. If you're shopping for acreage out in places like Hurricane, Toquerville, or the outlying areas of the county, the land beyond that first acre doesn't get the 45% break.
What's Changing in 2027
This is the part I really want buyers to know about. The Utah State Tax Commission says that under Utah Code section 59-2-103.5, as amended by 2026 Senate Bill 238, starting January 1, 2027, property owners must file Form TC-473A, the Application for Residential Property Exemption, with their County Board of Equalization to receive or keep the exemption if any of these apply:
- A change of ownership. That includes buying a home, deed transfers, transfers into a trust, and name updates on title.
- The property wasn't eligible the prior year. For example, a home that was a second home or nightly rental and is now becoming someone's primary residence.
- A county review. The County Board of Equalization has reason to believe the property no longer qualifies.
The exemption doesn't automatically transfer to you
The Tax Commission's FAQ answers this directly: if you buy a home that already had the 45% exemption, you still need to apply. The exemption doesn't carry over to a new owner after a transfer. So even if the seller had it for twenty years, you'll want to file your own application.
The September 15 deadline
Applications must be submitted to your County Board of Equalization on or before September 15, and the Tax Commission says late applications can't be accepted. If you miss it, the property may lose the exemption for that tax year and be taxed at 100% of market value. Put that date on your calendar the day you close.
What the county can and can't ask for
The Tax Commission also notes that counties can't ask for your sales price or require information beyond what's on state-approved forms. So if you're asked to fill out TC-473A after buying, that's expected, and you don't need to hand over your purchase contract.
How to Apply in Washington County
If you're buying in St. George, Washington, Hurricane, Ivins, Santa Clara, or anywhere else in the county, here's the process:
- Apply online through the link on the Washington County residential exemption page, or request a paper application from the Assessor's Office at (435) 301-7020.
- Make sure every owner on title signs. The Tax Commission says all registered owners need to sign the form.
- Submit it by September 15. Earlier is better. I'd suggest doing it within a few weeks of closing so it doesn't get lost in the move.
If you're in another county, the state form is available on the Tax Commission's property tax forms page, and your own county assessor can tell you how they accept it.
Building a new home?
If you're building a primary residence, you don't file TC-473A. The Tax Commission says you can file Form PT-24 instead, declaring that the home will be your primary residence once it's finished. With all the new construction around Southern Utah, this is a step a lot of buyers overlook.
How Property Taxes Fit Into Your Mortgage Payment
For most buyers, property taxes are part of the monthly mortgage payment. Your lender collects a portion each month into an escrow account and pays the bill when it's due. In Washington County, the County Treasurer says real property taxes are due November 30 each year, and the county sends both you and your mortgage company the tax information.
That's why the exemption matters to your monthly payment. If your home gets taxed at 100% of market value because an application never got filed, your tax bill goes up, your escrow account comes up short, and your monthly payment can rise at the next escrow review. Getting the exemption in place keeps your payment closer to what we estimated together.
When I put together numbers for buyers, I estimate taxes as part of the payment, and that estimate affects how much home you can afford in Utah. Prepaid taxes and the initial escrow deposit also show up at closing, which I cover in my Utah closing costs guide.
Other property tax relief to ask about
The primary residential exemption isn't the only program. The Tax Commission's forms page also lists applications such as the Veteran with a Disability Property Tax Exemption (PT-25) and the Active Duty Armed Forces exemption (PT-22). If you're a veteran or service member buying with a VA loan in Utah, it's worth checking with your county whether you qualify for one of these too.
Frequently Asked Questions
Do I have to apply for the exemption if I just bought my home?
Starting January 1, 2027, yes. The Tax Commission says any change in ownership requires the new owners to file Form TC-473A, and the exemption doesn't automatically transfer from the seller.
What happens if I miss the September 15 deadline?
According to the Tax Commission, late applications can't be accepted, and the property may be taxed at 100% of its market value for that tax year.
Can I get the exemption on a vacation home in St. George?
No. Vacation homes, cabins, and time-shares don't qualify. The exemption is only for primary residences occupied at least 183 consecutive days in a calendar year.
Does a long-term rental qualify?
It can, if a tenant lives there full-time as their primary residence. You'll need to submit a residential declaration, and the county may ask for a lease or tax schedule to verify it.
Will my lender file the application for me?
No. The application goes from the property owners to the county, and all owners on title need to sign it. I'm happy to remind you about it at closing, but it's your form to file.
Property taxes are one of those details that are easy to overlook until a bill shows up. If you want to learn alongside other local buyers, join our free community, the Utah Homebuyer Club. And when you're ready, get approved and start your home buying journey so I can walk you through a full payment estimate, taxes included.
Equal Housing Opportunity. Alex Hernandez, NMLS #1605167. This article is for general educational purposes only and is not tax or legal advice, a commitment to lend, or an offer of credit. All loans are subject to credit approval, underwriting, and property eligibility. Property tax exemptions, forms, rates, and deadlines are set by Utah law, the Utah State Tax Commission, and your county, and can change. Contact your county assessor or a tax professional about your specific property.