The current Wyoming tax system was created the way it stands today due to an economic depression the state experienced from 1923 to 1933. In 1935, the Wyoming government made drastic changes to the sales tax and property taxes collected to avoid a complete bankruptcy of the government.
While these tax law changes were meant to be temporary, the regulations have remained in effect. Only rate changes have affected the tax laws that state government first enacted in response to the depression. Wyoming doesn’t require residents to file a tax return for income earned in the state. Intangible assets, such as bonds, stocks, and bank accounts, are also not susceptible to income taxes. The state doesn’t impose taxes on retirement income or income residents earned in other states.
If you’re a Wyoming resident, it’s important to learn more about the property and sales tax systems in the state. Review this guide to find out about specific tax regulations and how they affect your tax liability.
Table of Contents
Wyoming Personal Income Taxes
When you earn income, you’re obligated to submit a federal income tax return to the Internal Revenue Service (IRS). It’s important to learn about federal government tax credits so you can obtain the tax refund you deserve or ensure you’re paying the correct amount.
If you’re a Wyoming resident and all your income was earned in the state, you aren’t responsible for filing an income tax return with the state as well. Wyoming is one of the few states that doesn’t impose personal income taxes on its residents.
This exemption from personal income tax also applies to capital gains and the interest you may have earned from your income throughout the year. Retirement income and income you received in a different state are also exempt from state income taxes if you live in Wyoming.
Wyoming Sales Tax
A sales tax is a tax imposed by state or local governments on every purchase made in the state of certain goods or services. Most state and local governments use the revenue from sales taxes to fund government activities and public services.
In Wyoming, the sales tax rate is 4%. However, counties are permitted to impose additional local taxes on top of this sales tax rate. If they add local taxes, transactions made in these specific locations include a higher sales tax than the state rate. For example, the following are just a few of the local counties that impose a county sales tax in addition to state sales tax:
- Laramie County: Additional 2%;
- Campbell County: Additional 1%;
- Goshen County: Additional 1.5%;
- Hot Springs County: Additional 1%;
- Platte County: Additional 2%;
- Washakie County: Additional 1%;
- Sheridan County: Additional 2%;
- Natrona County: Additional 1%.
Counties, cities, and towns also have the right to add additional taxes for lodging. Many counties in Wyoming impose additional county taxes on lodging transactions, including the following:
- Albany County: 10%;
- Crook County: 8%;
- Fremont County: 9%;
- Park County: 8%;
- Sweetwater County: 9%.
If you aren’t charged sales tax in a transaction that occurred outside of Wyoming but the goods will be brought back or the services will take place in the state, you must pay a use tax. The state government imposes a use tax on out-of-state transactions since these sellers don’t collect Wyoming sales tax for purchases.
The use tax is the same rate as the statewide sales tax of 4%. As a consumer and resident, it’s your responsibility to claim this use tax by filing a Wyoming Use Tax Return for Consumers and Non-Licensed Vendors (Form 44).
Wyoming Personal and Real Property Taxes
Wyoming imposes taxes on both personal and real property. Personal property is the property you own that is movable, such as equipment. Real property is the property you take ownership of that isn’t moveable, such as land and the housing attached to it. Certain real property is exempt from state property taxes, including:
- Religious property;
- Native American property;
- Fire engines or fire stations;
- Most museums and hospitals;
- Publicly owned property.
Most residential and commercial property owners must pay property taxes to their local counties. A county assessor evaluates the property and determines its value. This value and the local county tax rate are used to determine the taxes due for the year.
All counties in Wyoming use a standard assessment rate of 9.5% on residential and commercial property and an 11.5% standard assessment rate on industrial property. The property tax in Wyoming is relatively low at an average rate of 0.58%, with the median property tax collection at around $1,058.
Wyoming Inheritance and Estate Taxes
An inheritance tax is a tax an individual must pay on property or assets they inherited from a deceased loved one. An estate tax is a levy placed on the estate of a decedent that must be paid by the executor before ownership is transferred. In Wyoming, there are no gift or inheritance taxes.
Since the federal estate tax law was repealed, the Wyoming estate tax was also repealed on January 1, 2005. Therefore, individuals who passed away on or after this date are not required to pay estate taxes.
Other Wyoming Taxes
Wyoming Cigarette Tax
In Wyoming, tobacco product wholesalers are required to pay a 20% excise tax on the products they sell. When a wholesaler sells snuff, each unit is taxed at 60 cents. The state also imposes a cigarette tax that’s 3 cents per cigarette or 60 cents per pack of 20 cigarettes.
Wyoming Alcohol Tax
Wyoming controls the alcohol wholesale market and imposes taxes on the sale of alcohol. Wholesalers pay about 28 cents per gallon of wine, 95 cents per gallon of spirits, and about two cents per gallon of beer.
Wyoming Gas Tax
Wyoming imposes a gas tax of 24 cents per gallon on both regular and diesel fuel.
After reviewing the Wyoming tax system, including its regulations and calculations, you may find it easier to understand the taxes you owe and how the government uses them. Without personal income tax and with low property tax rates, Wyoming offers its residents some of the most affordable taxes in the country.
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