Taxes in Wyoming: State Tax Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Taxes in Wyoming: State Tax Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
Wyoming is one of the most tax-friendly states in America. It has no state income tax, no corporate income tax, and relatively low sales and property taxes. The state’s mineral wealth — particularly oil, natural gas, and coal — generates substantial severance tax revenue that funds state government and keeps individual tax rates low. Wyoming consistently ranks among the two or three lowest-tax states in the nation.
Wyoming Income Tax Rates (2026)
Wyoming has no state income tax. This applies to all forms of personal income:
- Wages and salaries
- Self-employment income
- Investment income and capital gains
- Retirement income (pensions, 401(k), IRA distributions)
- Social Security benefits
Wyoming’s constitution prohibits a state income tax on individuals, providing permanent certainty for residents.
Wyoming Corporate Taxes
Wyoming also has no corporate income tax. The state does not impose any tax on business profits, making it one of the most business-friendly states for entity formation.
| Tax | Rate |
|---|---|
| Corporate income tax | None |
| Franchise tax | None (for most entities) |
| LLC annual report fee | ~$60/year |
Wyoming is a popular state for LLC and corporation formation due to the lack of income tax, strong privacy protections, and minimal annual filing requirements.
Sales Tax
| Component | Rate |
|---|---|
| State base rate | 4.00% |
| Average combined (state + local) | ~5.36% |
| Maximum combined rate | ~6.00% (some counties) |
Counties can impose additional general purpose and special purpose sales taxes, typically adding 1–2% to the state rate. Most areas have a combined rate between 5% and 6%.
Exempt from sales tax: Groceries (food for home consumption), prescription medications, and agricultural equipment.
Wyoming’s sales tax rates are among the lowest of states that levy a sales tax.
Property Tax
| Metric | Amount |
|---|---|
| Average effective rate | ~0.56% |
| National average | 0.99% |
Wyoming has one of the lowest property tax rates in the nation. Residential property is assessed at 9.5% of fair market value, with mill levies applied to the assessed value. This assessment ratio keeps effective rates very low even when mill levies are moderate.
Exemptions and Programs
- Veterans exemption: Up to ~$3,000 off assessed value for qualifying veterans; ~$2,000 for qualifying surviving spouses
- Tax deferral for elderly: Homeowners 65+ can defer property tax payments until the home is sold
- Agricultural land assessment: Agricultural land is valued based on its agricultural productivity, not market value
- Mineral production valuation: Mineral-producing properties are assessed based on production value, which can fluctuate with commodity prices
Example: A home valued at $400,000 is assessed at ~$38,000 (9.5% of market value). At a typical mill levy, annual property tax is approximately ~$2,240 — roughly 0.56% of market value.
How Wyoming Compares to National Averages
| Tax Type | Wyoming | National Average |
|---|---|---|
| Top income tax rate | 0.00% | ~5.0% |
| Effective income tax (~$75K) | 0.00% | ~3.5% |
| Sales tax (combined avg) | ~5.36% | 6.6% |
| Property tax (effective) | ~0.56% | 0.99% |
| Overall tax burden rank | Lowest or 2nd lowest | — |
Who Benefits from Living in Wyoming
Wyoming may work well for:
- High-income earners — No state income tax on any amount of income, saving thousands to tens of thousands per year
- Retirees — No income tax on Social Security, pensions, or retirement withdrawals, plus low property taxes
- Investors — No state tax on capital gains, dividends, or interest income
- Business owners — No personal or corporate income tax, minimal formation and reporting requirements, and strong asset protection for LLCs
- Remote workers — Earn income from any employer nationally with no state income tax liability
- Ranchers and farmers — Agricultural land assessed at productivity value, not market value
Wyoming may be costly for:
- Those in remote areas — While taxes are low, the cost of goods and services in remote Wyoming communities can be higher due to transportation costs
- Consumers in higher-tax counties — Combined sales tax reaches 6% in some counties
- Those needing extensive public services — Wyoming’s small population and limited tax revenue mean fewer public services and programs than more populous states
- Workers in the energy sector during downturns — Wyoming’s economy and state revenue are heavily tied to energy prices
Wyoming-Specific Considerations
- No state estate or inheritance tax — Wyoming does not impose either tax
- No state gift tax — No tax on gifts at the state level
- Mineral severance taxes — Wyoming imposes severance taxes on mineral extraction (oil, gas, coal, trona), which generate a substantial portion of state revenue and subsidize low individual taxes
- Constitutional prohibition on income tax — Wyoming’s constitution prohibits a state income tax on individuals, providing long-term certainty
- LLC and trust haven — Wyoming’s privacy protections, charging order protections for single-member LLCs, and no income tax make it attractive for entity formation and asset protection
- Agricultural property valuation — Ranches and farms are assessed on agricultural productivity, not speculative land value, keeping taxes manageable for working operations
- Volatility risk — Wyoming’s dependence on mineral severance taxes means state revenue fluctuates with commodity prices; this could eventually lead to pressure for new revenue sources
Key Takeaways
- Wyoming has no state income tax, no corporate income tax, no estate tax, and no inheritance tax
- Sales tax averages just ~5.36% combined, with groceries fully exempt
- Property taxes at ~0.56% are among the lowest in the nation
- Mineral severance taxes fund a significant portion of state government, keeping individual taxes extremely low
- Wyoming is a top destination for LLC formation, trust planning, and asset protection
- The constitutional prohibition on income tax provides certainty that rates will remain at zero
Next Steps
- See how Wyoming compares at State Income Tax Comparison: All 50 States Ranked
- Calculate your federal bracket with the Tax Bracket Calculator 2026
- Explore deductions available to you — Tax Deductions You’re Probably Missing (Itemized vs Standard)
- Find a Wyoming CPA — Find a CPA Near You
- Consider tax-efficient strategies — Tax Planning Consultation