What Are the Different Tax Rates in Wyoming?

Wyoming is recognized for its favorable tax environment, attracting individuals and businesses seeking a lighter tax burden. Its tax structure promotes economic activity and minimizes financial obligations for residents. Understanding the various tax rates applicable in the state provides clarity on what to expect.

Wyoming State Income Tax

Wyoming does not impose a state income tax on individuals or corporations. Residents are not subject to state-level taxation on wages, salaries, investment earnings, or retirement income. The absence of this tax can result in more disposable income for individuals and higher profitability for businesses.

For corporations, this policy eliminates a layer of taxation on their profits. While federal income taxes still apply, the lack of a state income tax simplifies financial planning and reporting. This tax structure is a primary factor contributing to Wyoming’s appeal as a tax-friendly jurisdiction.

Sales and Use Tax Rates

Wyoming levies a statewide sales and use tax rate of 4% on most goods and services. Local jurisdictions, including counties and municipalities, can impose additional sales taxes, potentially adding up to an extra 2%. This can lead to a combined sales tax rate of up to 6% in some areas.

Sales tax applies to the sale, lease, or rental of tangible personal property and certain digital goods. Specific services are also subject to sales tax, such as intrastate telecommunication services, public utilities including gas and electricity, and services for the repair or alteration of tangible personal property. Intrastate transportation of passengers, accommodations in lodging establishments, and admission to amusement or entertainment venues are taxable. Groceries and prescription drugs are exempt from sales tax.

Property Tax Assessment

Property taxes in Wyoming are locally administered and are a source of revenue for local governments, including counties, cities, and school districts. These taxes are not levied at the state level but are based on the property’s fair market value. County assessors determine this value, representing what the property would reasonably sell for.

To calculate the assessed value, a specific assessment rate is applied to the fair market value. For residential and commercial properties, this rate is 9.5%. Industrial properties are assessed at 11.5%, while properties used for mineral production are assessed at 100%. The resulting assessed value is then multiplied by the local mill levy to determine the property tax owed, where one mill equals $1 of tax for every $1,000 of assessed value.

Other Significant Taxes

Wyoming has other taxes that contribute to state and local revenues. Fuel taxes are applied at a rate of $0.24 per gallon for gasoline and diesel. This rate also applies to alternative fuels such as compressed natural gas, liquefied natural gas, propane, and electricity, converted into gasoline or diesel gallon equivalents.

The lodging tax includes a state lodging tax of 5% collected on stays at hotels, motels, and rental properties. Local jurisdictions can impose an additional lodging tax of up to 2%, bringing the total combined lodging tax rate to 7% in some areas. The state also utilizes severance taxes on its mineral resources, providing revenue that helps support state operations without relying on an income tax.