Tax in Wyoming: a complete guide
This article will take you through what you need to know, including how much sales tax you’ll pay and how much of your retirement income will be taxed if you plan to live in the state of Wyoming.
Wyoming state income tax
Wyoming is one of nine states in the US that does not levy state income tax.
While those living in South Dakota do not have to pay state income tax, like every other citizen in the US, they do have to pay federal taxes. In 2023, seven different federal income tax brackets dictate how much you’ll owe each tax year.
For single filers, these include:
| Income bracket | Tax owed |
|---|---|
| $0 - $11,000 | 10 percent of taxable income |
| $11,001 – $44,725 | $1,100 plus 12 percent of the excess over $11,000 |
| $44,726 - $95,375 | $5,147 plus 22 percent of the excess over $44,725 |
| $95,376 - $182,100 | $16,290 plus 24 percent of the excess $95,375 |
| $182,101 - $231,250 | $37,104 plus 32 percent of the excess over $182,100 |
| $231,251 - $578,125 | $52,832 plus 35 percent of the excess over $231,250 |
| $578,126 and over | $174,238.25 plus 37 percent of the excess over $578,125 |
For people who are married and filing jointly, these include:
| Income bracket | Tax owed |
|---|---|
| $0 - $22,000 | 10 percent of taxable income |
| $22,001 – $89,450 | $2,200 plus 12 percent of the excess over $22,000 |
| $89,451 - $190,750 | $10,294 plus 22 percent of the excess over $89,450 |
| $190,751 - $364,200 | $32,580 plus 24 percent of the excess $190,750 |
| $364,201 - $462,500 | $74,208 plus 32 percent of the excess over $364,200 |
| $462,501 - $693,750 | $105,664 plus 35 percent of the excess over $462,500 |
| $693,751 and over | $186,601.50 plus 37 percent of the excess over $693,750 |
Wyoming also does not have a corporate income tax.
If you’re unsure about filing your taxes, a financial advisor can help. Here, they can review your income sources and develop a unique tax strategy just for you.
Wyoming Sales Tax
Wyoming State has a state sales tax rate of four percent.
Like other states, local government can add their own sales tax on top of the state rate. Counties must get voter approval before adding a maximum of one percent sales tax. This can bring the combined sales tax rate to a maximum of five percent.
Certain items are exempt from sales tax, this includes:
Groceries
Prescription drugs
Most medical supplies
Some other services
Wyoming does not currently have an annual sales tax holiday.
Wyoming Property Tax
Wyoming is home to some of the lowest property tax rates in the country.
Currently, the assessment ratios for commercial and residential property are 9.5 percent. This means only 9.5 percent of the market value of your home is subject to tax. For example, if your property is worth $100,000, taxes are assessed on $9,500.
For industrial property, this stands at 11.5 percent.
Wyoming Motor Tax
Wyoming residents must pay a four percent tax when purchasing a vehicle.
Vehicle owners should also be aware of fuel taxes in the state. Regular gas is taxed at $0.24 per gallon, and diesel is taxed at $0.24 per gallon.
Wyoming Estate Tax
Wyoming does not impose inheritance or estate taxes.
However, it’s important to remember federal estate tax can still apply if your estate is above a certain threshold ($12.92 million in 2023); otherwise, there will be no fees on the estate or inheritance you leave behind.
Also, if you live in Wyoming but inherit an estate from someone living in a state with estate tax, you must abide by local regulations.
Wyoming Retirement Tax
As Wyoming has zero state income tax, all your retirement income is tax-exempt. Your beneficiaries also benefit from South Dakota’s tax rules, as the state does not levy estate or inheritance tax.
The state also has property tax breaks for retirees. According to the Wyoming Department of Revenue, Wyoming's property tax deferral program allows for the delayed payment of up to 50 percent of property taxes owed on a qualifying principal residence.
To be eligible for the program, you must:
Have a limited income
Be over 62 years of age
Purchased the property 10 years prior
Ensure the principal resident is on a parcel of land of less than 40 acres
For further tax guidance and to ensure you’re not paying more tax than you need to, it’s wise to speak to an expert. A financial advisor can help you handle all your tax queries and ensure you’re not paying more tax than needed.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.