Taxes in Wyoming

One of the greatest advantages to doing business in Wyoming is the taxes. Wyoming has been consistently ranked as the most tax friendly state in the union. There’s good reason for that.

Wyoming Tax Advantages:

  • No Corporate Taxes: That’s right. Corporations are not charged an entity tax in Wyoming. Which means that in Wyoming, you avoid the burden of double taxation.
  • No Personal Income Taxes: You read that correctly. In Wyoming, you will pay no personal income tax. Your money is your money. You earned it.
  • No Inheritance or Estate Taxes: In Wyoming, when you leave an estate to your children or family members, there are no estate taxes charged on their inheritance.
  • No Out-of-State Retirement Taxes: Do you have a second home in Wyoming you intend to retire to? There are no taxes on retirement income earned in other states.
  • No Excise Taxes: Every time you buy food and gas in Wyoming, you are not paying state taxes on those items.
  • No Intangible Taxes: Wyoming imposes no taxes upon intangible assets like stocks and bonds.

Is Wyoming a Tax Free State?

Not entirely. Wyoming is often heralded for having low taxes, and if you were looking for a state that purposefully kept taxation to a minimum, Wyoming would be it. However, Wyoming is not without taxes. How else is a state supposed to raise revenue for statewide projects? Taxes, while no one’s favorite subject, are necessary, even in Wyoming!

What Taxes Do You Pay in Wyoming? 

Wyoming avoids taxes like health nuts avoid carbs, but that doesn’t mean the state levies no taxes. Here’s a list of taxes you or your business might pay in Wyoming.

Wyoming Sales Tax

There is a sales tax in Wyoming. The state charges a low 4% and individual municipalities may add a little more. Sales tax tops out around 6%.

Businesses that intend to sell goods or services within the state are required to file an application with the Department of Revenue: Sales/Use Tax Application.  This form registers a business with the Department of Revenue so that sales taxes can be paid to the state.

Wyoming Property Taxes

Wyoming does have property tax, but it is incredibly low compared to other states.

  • State Assessment on Agricultural Land: 9.5% of Agricultural Value
  • State Assessment on Residential and Commercial Property: 9.5% of Fair Market Value
  • State Assessment of Industrial Land: 11.5% of Fair Market Value
  • State Assessment of Minerals: 100% of Fair Market Value

Wyoming residential and commercial property taxes can be calculated using the following equation: (Fair Market Value x 9.5%) x Local Mill Levy Rate = Property Tax.

Wyoming Gas Tax

Wyoming currently ranks 38th among all states with regards to their gas taxes. Wyoming adds 24 cents per gallon of gas, but when you consider that its neighbors Idaho and Montana levy gas taxes that are almost 10 cents higher, Wyoming residents and businesses pay less for the miles they drive.

Wyoming Alcohol and Cigarette Taxes

Cigarettes in Wyoming are taxed at a rate of 60 cents per pack. As for liquor, Wyoming is a “control state” which means that it maintains a monopoly over the wholesale market for liquor and wine. Most control states replace traditional excise taxes with markups and fees, but in Wyoming markups and fees amount to less than 1 cent per gallon.

Annual Business Fee

Wyoming corporations and Wyoming LLCs are required to pay a fee each year when filing their annual report. This fee is $60 or two-tenths of one million on the dollar ($.0002) of all in-state assets, whichever is greater.

If your total in-state assets have a value of less than $300,000 then you will pay the $60 annual fee (plus a $2 convenience fee if filed online).

If your in-state assets are greater in value than $300,000 then you will multiply the value by .0002 and pay the resulting amount.