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Wyoming Tax

Wyoming Tax

Wyoming Tax: Everything You Need to Know

Wyoming is one of the most economically stable states in the nation. According to the 2020 Tax Foundation State Business Tax Climate Index, Wyoming ranks as the number one state for business tax climate due to its lack of an individual income tax, low sales tax, and business-friendly tax policies. However, despite this positive reputation, Wyoming still has a tax structure that can be complex for its residents to navigate.

In this article, we will break down Wyoming’s tax structure and look at the most important taxes that Wyoming residents pay.

Wyoming Income Tax

Wyoming is one of the few states in the United States that does not have an individual income tax. Wyoming’s lack of an individual income tax is one of the reasons why it has a business-friendly tax policy and is a desirable state to start and run businesses in. So, if you live and work in Wyoming, you won’t have to pay any income tax on your earnings.

But don’t get too excited; Wyoming still has other taxes that will impact residents.

Wyoming Sales Tax

Like most other states, Wyoming has a sales tax. The sales tax in Wyoming is 4%. This tax rate is relatively low and makes it easier for businesses to operate in the state. The state’s low sales tax rate is due to its reliance on other revenue sources to fund its government programs and operations.

However, sales tax rates in Wyoming can vary from county to county. In some cases, local sales tax can be as high as 2%. It’s worth noting that some items, such as groceries, prescription drugs, and some medical equipment, are exempt from sales tax in Wyoming.

Wyoming Property Taxes

Wyoming’s property tax system is unique. Unlike most other states, Wyoming’s property taxes are relatively low. This is because, in Wyoming, the revenue generated from property taxes is primarily used to fund public schools. This is different from other states where property taxes are often the primary source of funding for local governments.

Wyoming’s property tax is based on the assessed value of the property. The assessed value is determined by the county assessor’s office and is equal to the market value of the property. The taxable value is then calculated using a fixed percentage of the assessed value. This percentage is known as the assessment rate. This means that if the assessment rate is 10%, then the taxable value of a property assessed at $100,000 will be $10,000.

The property tax rate in Wyoming varies from county to county. In 2019, the average property tax rate in Wyoming was 0.63%. This ranks Wyoming as having the fifth-lowest average property tax rate in the nation.

Wyoming Excise Taxes

In addition to income, sales, and property taxes, Wyoming also has several excise taxes that it imposes on its residents. Excise taxes are taxes on specific goods and services that are considered to be luxury items or are harmful to people’s health.

Wyoming’s excise taxes include tobacco taxes, alcoholic beverage taxes, and fuel taxes.

Tobacco Taxes

Wyoming has a tobacco tax of $0.60 per pack of 20 cigarettes. This is higher than the average tobacco tax rate in the United States, which is $1.81 per pack of 20 cigarettes. Wyoming’s tobacco tax rate is ranked as the 31st highest out of the 50 states in the nation.

Alcoholic Beverage Taxes

Wyoming imposes a tax on alcoholic beverages that are sold in the state. The tax rate varies depending on the type of beverage and the alcohol content.

For beer with an alcohol content of less than 7%, there is a tax of $0.02 per liter. For beer with an alcohol content of between 7% and 15%, there is a tax of $0.27 per liter.

For wine, there is a tax of $0.28 per liter.

For spirits, there is a tax of $0.94 per liter.

Fuel Taxes

Wyoming’s fuel tax is the 12th highest in the nation, at $0.24 per gallon of gas. The fuel tax rate in Wyoming has remained unchanged since 2013.

Wyoming Tax Credits and Deductions

Like most states, Wyoming offers tax credits and deductions to its residents to help offset the impact of taxes and promote certain behaviors.

Wyoming offers tax credits for businesses that invest in certain industries or communities, and for those that hire veterans or provide training for their employees.

Wyoming also offers tax deductions for contributions made to 529 education saving plans and for contributions made to retirement accounts.

Conclusion

Wyoming has a tax structure that is favorable to businesses, residents, and visitors. Although the state does not have an individual income tax, it still has taxes that will impact residents, including sales tax, property tax, and excise taxes.

The state has a reputation for being business-friendly, which is reflected in its tax policies. Its lack of an individual income tax, property tax system, and low sales tax rate make it an attractive place to live and work.

As with any other state, it’s essential to understand the tax structure in Wyoming and your responsibilities as a resident. If you need more information on Wyoming’s tax structure, including up-to-date information, check out the Wyoming Department of Revenue’s website or speak to a tax professional.


Sales Tax Forms

Form Sample VC 42-1 Return For Annual Filers

Form 108 Manufacturer’s Sales and Use Tax Return

Property Tax Forms

Form Intangible Personal Property Exemption Application

Form 2011 Property Tax Refund Application

Wyoming’s economy is based on agriculture, mining, and some fossil fuel industries. Wyoming has one of the best tax policies for business in the country. Wyoming has the second lowest taxes in the United States. Wyoming residents spend approximately 7% of their entire income of Wyoming state taxes. Wyoming is the least populated state in the US with an estimated population of 544,270. Since it is a small state it can afford to have low taxes and still be able to provide all basic state and local government services.  If you need legal advice and assistance, contact Wyoming lawyers.

Wyoming Sales Tax

The government is heavily dependent on the Sales tax as a means of generating revenue. The Wyoming sales tax rate currently stands at 4%, well below the national average. Wyoming sales taxes generate $2,069 a year in revenue from each person. There are few sales tax exemptions, if any, to the Wyoming sales tax. The Wyoming sales tax on gasoline is extremely cheap at 14 cents per gallon.

Due to the state’s large size and countless miles of open roads, fuel consumption for the state of one half of a million residents is not to be discouraged. Wyoming’s major industries are also huge fuel consumers. Agriculture and mining consume tonnes of petroleum a year. Wyoming’s agricultural sector includes raising livestock feed crops and cattle ranching. Fuel consuming farming equipment necessitates cheap fuel to keep production steady. The Wyoming Sales tax on cigarettes is only 60 cents per pack of twenty.

Wyoming State Income Tax

Wyoming is one of seven American states that does not impose an income tax. The Wyoming State income taxes do not exist for both corporations and individuals. This accounts for the state’s pro business tax policies that are designed to create a more diversified economy for Wyoming residents. Agriculture and fossil fuel mining are dwindling economic sectors in the state. Wyoming does not levy a gross receipts tax on businesses either.

The only tax Wyoming businesses must pay is the Wyoming sales tax. In turn, it is the consumer that pays the tax, the businesses are only required to deliver the revenue. Essentially, businesses do not pay any taxes in Wyoming. The Wyoming State Income Tax was never implemented since the federal gave its rubber stamp on this this form of taxation in 1913 with the passage of the Sixteenth Amendment

Wyoming Property Tax

Given the state’s rural character, the state has surprisingly high property taxes. Wyoming property taxes are among the nation’s highest. Ownership of a piece of Wyoming’s beautiful landscape comes at a cost. Wyoming collects property taxes at the local and state level. Local governments collected about $1,505 a head in property taxes.

This may be because property owners in Wyoming own large plots of land for industrial or agricultural purposes. Residential properties are relatively large as well. Local governments keep the bulk of property tax revenue to provide vital local government services. State revenue from Wyoming property taxes amounted to an estimated $425 per capita. Combined state and local property taxes are about $1,930 per capita. This is not bad, given the fact that Wyoming residents only contribute about $3,700 worth of Wyoming state taxes.