Wyoming has no state income tax. The state levies no personal income tax and no corporate income tax, so wages, business profits, investment gains, and retirement distributions are not taxed at the state level.1Wyoming Business Council. Business Resources – Tax Climate Wyoming is one of eight states that skip income tax entirely, funding government through sales taxes, property taxes, and severance taxes on mineral extraction instead.
No Personal Income Tax, No State Return
There are no brackets, no rates, and no state return to file each April. The state has never enacted an income tax, and the Wyoming Constitution makes one nearly impossible to adopt. Article 15, Section 18 requires that if an income tax were ever imposed, taxpayers would receive full credit against that liability for all sales, use, and property taxes they already paid during the same year.2Wyoming Legislature. Wyoming Constitution Title 97 – Article 15, Section 18 Those credits would wipe out most or all of any income tax bill. State law also preempts the entire field of income taxation, so no county, city, or town can impose one either.3Wyoming Legislature. Wyoming Statutes Title 39 – Section 39-12-101
The practical effect is simple. You deal with the IRS for federal taxes and nothing else on the income side. Your paycheck carries no state withholding line. You make no quarterly estimated payments to the state. You hire no state tax preparer.
Retirement Income
Every form of retirement income is free from Wyoming tax. Social Security benefits, pension payments, 401(k) and IRA withdrawals, and annuity distributions all pass through untouched. Federal income tax still applies to most of these sources, but the state takes nothing.
No Corporate Income Tax
Wyoming imposes no corporate income tax and no gross receipts tax on business revenue.1Wyoming Business Council. Business Resources – Tax Climate LLCs, S-corporations, C-corporations, and partnerships all keep their profits without a state-level cut. There are no apportionment formulas or state depreciation schedules to work through.
One cost does apply at the entity level, and it isn’t an income tax. Businesses must file an annual report with the Secretary of State, which carries a license tax. For LLCs, the minimum is $60 per year. Companies with assets exceeding $300,000 pay two-tenths of one mill per dollar of assets (effectively $0.0002 per dollar), and whichever amount is larger becomes the fee.4Wyoming Secretary of State. Business Entities FAQs The report is due on the first day of the anniversary month your entity was formed.
What You Pay Instead
Sales and Use Tax
Sales tax is one of Wyoming’s primary revenue tools. The statewide base rate is 4%, built from a 3% base levy plus an additional 1% that took effect in 1993.5Justia Law. Wyoming Code 39-15-104 – Taxation Rate Counties can layer on local-option taxes that typically add 1% to 2%, so combined rates generally land between 5% and 6% depending on where you shop.
Use tax works as the backstop. When you buy something out of state and bring it into Wyoming, you owe use tax at the same 4% state rate plus any applicable local rate.6Justia Law. Wyoming Code 39-16-104 – Taxation Rate This comes up most often with vehicles, equipment, and online purchases from retailers that don’t collect Wyoming sales tax. You generally pay the use tax when you register a titled item at the county clerk’s office.
Several categories are exempt. Food purchased for home consumption is exempt, though prepared meals, candy, soft drinks, and dietary supplements remain taxable. Prescription drugs, insulin, prosthetic devices, hearing aids, eyeglasses, and durable medical equipment are exempt when sold under a prescription. Farm implements used exclusively for agriculture, livestock, animal feed for marketing purposes, and seeds or fertilizer for crops destined for sale also avoid the tax. A temporary exemption runs through December 31, 2027, for manufacturing machinery purchases exceeding certain thresholds.
Property Tax
Property tax is administered at the county level, with assessment ratios set by state statute. The taxable value of your property is a percentage of its fair market value, and the percentage depends on the category:7Justia Law. Wyoming Code 39-13-103 – Imposition
- Residential and commercial property: 9.5% of fair market value
- Industrial property: 11.5% of fair market value
- Mineral gross product: 100% of value
Your county assessor applies the local mill levy to the resulting taxable value to calculate the actual bill. A home appraised at $400,000 has a taxable value of $38,000, and the mill levy for your specific taxing district determines the final amount. Mill levies vary significantly between counties and between districts within the same county, so two identical homes in different parts of the state can carry very different tax bills.
Property taxes are paid in two installments. The first half is due by November 10 of the tax year, and the second half is due by May 10 of the following year. Miss a deadline and the unpaid balance becomes delinquent the next day and starts accruing interest. Homeowners who prefer to pay in full can do so by December 31 to avoid any interest on the first installment.
Long-term residents who own and live in their primary home may qualify for a property tax refund. You must have been a Wyoming resident for at least five years, and total assets for each adult in your household must be under $169,866.8Wyoming Property Tax Refund System. Wyoming Property Tax Refund System Income limits are tied to the median income in your county. At or below 125% of the county median, the refund is calculated on 75% of taxes paid, capped at half the median residential tax bill for that county. Between 126% and 145% of the median, the refund is reduced. Applications for the prior tax year are due by June 1. Veterans with qualifying service-connected disabilities can claim a separate exemption that reduces their property’s assessed value by up to $6,000.9Justia Law. Wyoming Code 39-13-105 – Exemptions
Fuel Tax
Wyoming charges a fuel license tax of $0.24 per gallon on gasoline and diesel, combining a $0.23 base tax with a $0.01 additional levy.10Wyoming Department of Transportation. Fuel Tax Rates Alternative fuels are taxed at the same $0.24 rate per gasoline gallon equivalent. The money funds road construction and maintenance through the state highway fund.
No Estate or Inheritance Tax
Wyoming imposes no estate tax and no inheritance tax. When a Wyoming resident dies, the estate owes nothing to the state regardless of its size. Federal estate tax may still apply to estates exceeding the federal exemption threshold, but the state adds no layer of its own.
How Wyoming Funds Itself Without an Income Tax
The obvious question with no income tax is how the state pays for roads, schools, and public safety. The answer is largely underground. Wyoming levies severance taxes on the extraction of natural resources, and those taxes generate a large share of state revenue. The current severance tax rate on crude oil and natural gas is 6%.11Wyoming Legislature. Wyoming Statutes Title 39 – Section 39-14-204 Coal is also taxed at 6% as of July 2025, after the legislature consolidated the previous split rates of 6.5% for surface mining and 3.75% for underground mining.
Reliance on mineral revenue cuts both ways. When energy prices are high, state coffers fill and Wyoming funds services generously without taxing personal income. When prices crash, revenue drops sharply, and the state leans on trust funds and reserve accounts built up during stronger years. Sixty-nine percent of statewide sales and use tax revenue flows to the General Fund, with the remaining 31% distributed to counties and municipalities, providing a steadier complement to the volatile mineral stream.