Best Cities for Small Business in Utah
Utah ranks #5 of 50 for small business, with a small business score of 78.2. South Jordan is its best city for small business at 71.5.
- Utah, all states
- #5 of 50
- Population
- 82,686
Why Utah Works for Small Business
Utah ranks #5 out of 50 for small business owners and entrepreneurs — one of the most business-friendly environments in the country. The state's fiscal health score of 71/100 signals a well-managed state government with sustainable finances — the kind of stability that benefits long-term business planning.
Tax policy directly impacts the bottom line. Utah's overall tax burden is 9.46% of income, with a 4.55% income tax rate that applies to both personal and pass-through business income. The 7.42% combined sales tax rate is on the higher side and worth factoring into pricing strategy. The economic environment (score: 66/100) with 3.6% unemployment shows healthy labor availability.
Population growth of 1.03% is a tailwind — a growing customer base and expanding labor pool benefit most small businesses. The education system (score: 77/100) produces a reasonably well-prepared workforce. A typical home value of $534,582 is expensive enough that employee compensation expectations may be higher.
All 20 Cities Ranked for Small Business
| # City | Grade | Small Business score | Overall | Household finances | Economy | Growth | Population |
|---|---|---|---|---|---|---|---|
| 1South Jordan | A+ | 71.5 | 67.3 | 92 | 82 | 60 | 82,686 |
| 2Riverton | A | 70.0 | 66.3 | 89 | 79 | 59 | 45,457 |
| 3Lehi | B+ | 69.5 | 62.1 | 88 | 82 | 68 | 85,173 |
| 4Eagle Mountain | B+ | 68.8 | 59.0 | 83 | 70 | 92 | 53,290 |
| 5Herriman | A | 68.5 | 65.6 | 85 | 78 | 59 | 59,346 |
| 6Draper | B+ | 65.6 | 62.2 | 85 | 78 | 51 | 50,278 |
| 7Layton | B+ | 62.2 | 62.0 | 70 | 69 | 55 | 83,286 |
| 8Sandy | B+ | 61.2 | 60.9 | 79 | 71 | 36 | 94,291 |
| 9Bountiful | B+ | 61.0 | 62.5 | 73 | 69 | 42 | 45,023 |
| 10West Jordan | B+ | 60.5 | 58.8 | 76 | 70 | 43 | 116,692 |
| 11Millcreek | B+ | 59.9 | 60.8 | 69 | 66 | 39 | 63,648 |
| 12Murray | B | 57.8 | 58.7 | 69 | 61 | 41 | 50,188 |
| 13St. George | B | 56.2 | 57.3 | 53 | 56 | 63 | 101,995 |
| 14Orem | B+ | 53.8 | 59.2 | 58 | 59 | 31 | 97,182 |
| 15West Valley City | C+ | 52.9 | 52.9 | 62 | 61 | 36 | 138,437 |
| 16Taylorsville | C+ | 52.6 | 54.5 | 61 | 58 | 36 | 58,678 |
| 17Ogden | C+ | 50.6 | 53.5 | 47 | 51 | 44 | 87,413 |
| 18Salt Lake City | C | 50.3 | 49.8 | 48 | 56 | 46 | 208,007 |
| 19Provo | B | 47.0 | 56.3 | 26 | 53 | 39 | 114,766 |
| 20Logan | C+ | 42.9 | 54.3 | 25 | 52 | 29 | 54,907 |
City small business scores use each city's own data, with the category weights rescaled over the categories the city has; outdoor access has no city-level measure and is left out.
Compare: States with Similar Small Business Rankings
Also See: Utah for Other Lifestyles
Frequently Asked Questions
Is Utah a good state for small business?
Utah ranks #5 out of 50 for small business with a persona-weighted score of 78.2/100. Its strongest relevant category is Education (77/100) and its weakest is Livability (20/100).
What is the best city for small business in Utah?
South Jordan ranks #1 in Utah for small business with a score of 71.5/100, followed by Riverton and Lehi.
What factors are most important for small business in Utah?
Rankings weighted toward business-friendly tax climate, strong economy, population growth, workforce quality, and transportation infrastructure — what matters when starting or running a small business.