What Is Wyoming Sales Tax and How Does It Work?

Sales tax in Wyoming is a consumption tax applied to the sale of certain goods and services within the state. This tax is collected by sellers at the point of purchase and then remitted to the Wyoming Department of Revenue. The revenue generated from sales tax helps fund public services and government operations across the state. It represents a percentage of the purchase price, increasing the total cost for consumers.

Understanding the Sales Tax Rate

Wyoming has a statewide sales tax rate of 4%. This base rate applies to all taxable purchases made across its counties. However, the total sales tax rate a consumer pays can be higher due to additional local option taxes.

Counties can impose additional sales taxes, often called “optional general purpose” or “special purpose” taxes. Many counties add 1%, known as the “5th penny,” raising the combined rate to 5%. A “6th penny” tax, bringing the total to 6%, requires voter approval. The final sales tax rate varies by location.

Items Subject to Sales Tax

Wyoming sales tax generally applies to the sale of tangible personal property. This includes a wide range of goods consumers typically purchase, such as clothing, electronics, and home furnishings.

Certain services are also subject to sales tax in Wyoming. These can include lodging, installation labor, and specific personal services. Additionally, delivery charges, including both shipping and handling, are subject to sales tax if they are part of the sale of a taxable item.

Common Items Not Subject to Sales Tax

Many common items are exempt from Wyoming sales tax. Food purchased for domestic home consumption, such as groceries, is not taxed. Prescription drugs and most medical supplies are also exempt from sales tax.

Beyond these consumer goods, certain business-related items and services also receive exemptions. This includes machinery and equipment used directly in manufacturing or processing, as well as agricultural products like seeds, fertilizers, and farm equipment. Purchases made by qualifying nonprofit and government entities for official use are also exempt.

Sales Tax for Online and Out-of-State Purchases

Wyoming sales tax also applies to purchases made from online retailers or out-of-state vendors if certain conditions are met. Businesses without a physical presence in Wyoming, known as remote sellers, must collect and remit sales tax if their gross sales into the state exceed $100,000 in the current or previous calendar year. This is known as economic nexus.

Marketplace facilitators, such as online marketplaces, are also responsible for collecting and remitting sales tax. If a marketplace facilitator has over $100,000 in gross sales in Wyoming in the current or preceding calendar year, they must collect sales tax on behalf of their marketplace sellers.

When sales tax is not collected by an out-of-state seller on a taxable purchase, the consumer may be responsible for remitting use tax to the Wyoming Department of Revenue. Use tax applies to taxable goods purchased outside Wyoming but intended for use, storage, or consumption within the state. The use tax rate is the same as the sales tax rate. For example, if a vehicle is purchased out-of-state and brought into Wyoming, a use tax is due before its first registration, within 65 days.