Wyoming’s tax structure is distinctive because it relies less on income based taxes and more on resource based and local taxation. Indinero offers support for tax services for people who refer to this material and need assistance understanding or managing their tax obligations.
Income Tax
Wyoming does not impose a personal income tax. Residents do not file a state income tax return on wages, salaries, or investment income.
Key points:
- No state income tax applies to individuals.
- Pass through business income is not taxed at the state level.
- Federal income tax rules still apply and must be followed by all taxpayers.
Sales Tax
Wyoming administers a statewide sales and use tax that applies to most tangible personal property and selected services.
Key points:
- The state rate is 4 percent.
- Counties may add optional local taxes, usually bringing combined rates to between 5 percent and 6 percent.
- Exemptions apply to prescription drugs, some agricultural equipment, and specific manufacturing related items.
- Businesses that sell taxable goods or services are required to collect tax, maintain accurate records, and file periodic reports.
Property Tax
Property tax is determined and collected at the local level in Wyoming. It funds schools, counties, cities, and special districts.
Key points:
- Property is assessed each year based on fair market value.
- Different classes of property have set assessment ratios defined in state law.
- Local jurisdictions set mill levies, which create variation in the total amount owed by property owners.
- Property tax applies to real estate and in many cases to business personal property.
Corporate Tax
Wyoming does not levy a traditional corporate income tax. Most businesses operating in the state are not taxed on net income.
Key points:
- No corporate income tax applies to general business operations.
- Companies may still owe industry specific taxes or fees depending on their activities.
- Annual reporting or licensing requirements still apply for maintaining good standing in the state.
Severance Tax
Severance taxes form a significant part of Wyoming’s revenue structure. These taxes apply to the extraction of natural resources.
Key points:
- Resources subject to tax include minerals, oil, natural gas, and coal.
- Rates vary depending on the type of resource extracted.
- Severance tax revenue supports state services and long term stabilization funds.
Lodging Tax
Wyoming applies a lodging tax to accommodations provided by hotels and similar businesses.
Key points:
- The statewide rate is 5 percent.
- A portion of the revenue is used for statewide tourism promotion.
- Local governments may impose additional lodging taxes, which can increase the total rate.