Wyoming Tax Guide 2026

The constitutional no-tax framework

Wyoming Constitution Article 15 §16 (added 1974) PROHIBITS state income tax on personal income. Amending this requires a state constitutional amendment — two-thirds of each legislative chamber, ratified by majority popular vote at general election. The constitutional bar applies to: • Personal income tax (wages, SE, investment, capital gains, retirement) • Estate tax (also constitutionally prohibited) Not constitutionally prohibited but ALSO ABSENT: • Corporate income tax (no state statute imposing it) • Franchise tax (none) • Gross receipts tax (none) • Inheritance tax (none) • Gift tax (none) • Intangible personal property tax (none for residents) • Personal property tax on residential goods (none) Wyoming relies on: • Severance taxes (oil, gas, coal extraction) — 30%+ of state revenue • Sales tax + use tax (~25% of revenue) • Property tax — primarily mineral, industrial, commercial • Federal mineral royalties (significant — federal lands in WY produce large royalty income shared with state) This makes WY one of the few states where individual residents can have essentially zero state tax exposure on income.

Sales tax

State rate 4% (Wyo. Stat. §39-15-104). Counties can add 1%–2% local-option — combined averages 5.44% statewide (one of the lowest combined rates in the US). Notable counties: • Teton (Jackson): 6% combined (resort area) • Laramie (Cheyenne): 6% • Natrona (Casper): 5% • Sweetwater (Rock Springs): 6% • Albany (Laramie): 6% • Park (Cody): 4% (no county add-on) Groceries: EXEMPT. Prescription drugs: exempt. Clothing: taxable. Most services: exempt. Economic nexus (Wyo. Stat. §39-15-501): $100,000 in cumulative sales OR 200 transactions. Lodging tax (Wyo. Stat. §39-15-105(b)): 5% state lodging tax + county/city up to additional 4% — combined hotel/short-term-rental tax of 9%–13% in tourist areas like Jackson, Cody, and Cheyenne. Vehicle Sales/Use Tax: 4% state + county = ~5.44% combined; capped per vehicle? No formal cap, but vehicle dealers handle collection at the time of registration.

Property tax — low and simple

Statewide average effective property tax ~0.55% — among the lowest in the US (only HI, AL, CO, WV, SC, UT are reliably lower). Counties: Laramie (Cheyenne): ~0.65%, Natrona (Casper): ~0.66%, Albany (Laramie): ~0.59%, Teton (Jackson): ~0.46% (high-value properties dilute), Sweetwater: ~0.56%. Wyoming uses fractional assessment: • Class 1 (gross production minerals): 100% of value • Class 2 (industrial property): 11.5% • Class 3 (all other property including residential): 9.5% So a $400,000 Wyoming home is assessed at 9.5% × $400,000 = $38,000 × ~$70 per $1,000 average mill = ~$2,660/yr (illustrative). Property Tax Refund Program (Wyo. Stat. §39-13-109(c)(v)): income-tested refund for elderly/disabled with low income. Property Tax Relief for Long-Term Homeowners (HB 4 of 2024): cap on residential assessment increases at 4% per year (effective 2024). No personal property tax on residential household goods. Business equipment IS taxed (industrial class). Vehicles taxed annually at registration. Senate Joint Resolution 3 of 2024 proposed constitutional amendment creating a separate residential property class for purposes of assessment rate differentiation — passed legislature 2024, on November 2024 ballot. Voter approval may unlock further residential tax relief in subsequent legislation.

Wyoming LLC — the leading anonymous asset-protection jurisdiction

Wyoming was the first US state to enact the LLC statute (1977) and continues to lead in LLC innovation: 1. ANONYMOUS FILINGS (Wyo. Stat. §17-29-201): WY does NOT require disclosure of members or managers on the Articles of Organization or annual report. Only the registered agent and organizer are public. True ownership remains private. 2. CHARGING ORDER as EXCLUSIVE REMEDY (Wyo. Stat. §17-29-503): a creditor of an LLC member can only obtain a 'charging order' against distributions — cannot seize the member's interest itself, force liquidation, or vote management rights. Among the strongest LLC asset-protection in the US. 3. SERIES LLC (Wyo. Stat. §17-29-211): allows multiple 'series' within one LLC, each with separate assets and liabilities — useful for real estate investors holding multiple properties. 4. NO PIERCING the corporate veil under most circumstances if formalities are followed. 5. CLOSE LLC option (simplified governance). 6. PRIVATE TRUST COMPANY framework (Wyo. Stat. §13-5) — allows wealthy families to operate their own trust companies for managing family assets. 7. NO STATE INCOME TAX on LLC income (since WY has none). Wyoming LLC formation: $100 filing fee + $60 annual report (Wyo. Stat. §17-28-104) — among the lowest in the US. Many non-residents form WY LLCs as holding companies, asset-protection vehicles, or anonymous ownership structures for real estate. WY LLCs are particularly popular for: • Real estate investors (one WY LLC owns operating LLCs in each state where property is held) • Privacy-conscious high-net-worth individuals • Asset protection planning combined with offshore strategies • Holding cryptocurrency (the WY DAO LLC framework, Wyo. Stat. §17-31, enables LLCs operated by smart contract) WY also pioneered legal frameworks for DAOs (Decentralized Autonomous Organizations, since 2021) and digital assets — the leading US jurisdiction for crypto-native business structures.

Severance tax and the fiscal model

Wyoming Severance Tax (Wyo. Stat. §39-14): • Oil: 6% of gross value • Natural gas: 6% • Coal: 6.5% • Trona (soda ash): 4% • Bentonite: 2% • Uranium: 4% Severance tax revenue funds the Permanent Wyoming Mineral Trust Fund (PWMTF) — a constitutionally protected sovereign wealth fund holding $9B+ as of 2024. Interest from PWMTF funds general state operations, reducing reliance on other taxes. Federal mineral royalties: WY receives ~50% of federal mineral royalties from federal lands within the state (large amount due to coal, gas, and oil production on federal lands). This is a SEPARATE revenue stream from state severance tax. The severance-tax + federal-royalty fiscal model is why WY can sustain zero income tax, low sales tax, and low property tax for residents — the burden falls on out-of-state purchasers of WY's natural resources. No estate, inheritance, or gift tax. Unemployment tax: 0%–8.5% on $32,400 wage base (high-ish wage base).

Worked example: Rachel Brennan, Jackson-based ranch owner and remote real estate investor (single, 2026)

Rachel earns $185,000 from her real estate investment LLC (managed remotely, organized in WY). She owns a $1.2M Jackson Hole primary residence. Realizes $350,000 LTCG from selling a Colorado rental property held in a separate WY series LLC.

Federal: SE tax (if material participation in real estate, may be limited; passive income often not SE) + federal income tax + §199A 20% QBI (real estate trade or business — qualifies under safe harbor) + LTCG at 20% + 3.8% NIIT. Wyoming: Real estate income: $0 WY tax (no income tax) LTCG: $0 WY tax (no income tax) Total WY income tax: $0 Colorado (where the sold property was located): non-resident return may be required. CO has 4.4% flat tax on Colorado-source income — Rachel owes CO tax on the $350k LTCG sourced to Colorado: $350,000 × 4.4% = $15,400 CO tax Rachel saves vs CO-resident on her $185k other income: a CO resident would owe additional ~$8,140 CO tax on the $185k. Rachel pays $0 to WY on that income. Property tax on $1.2M Jackson Hole primary residence: Class 3 assessment 9.5% × $1,200,000 = $114,000 × Teton County ~$60 per $1,000 effective millage = ~$6,840/yr Effective rate ~0.57% — moderate dollar amount given high property value but low rate WY total state burden: $0 income tax + ~$6,840 property + ~5%–6% sales tax on purchases. For comparison, the same scenario in California: $185k ordinary at top CA bracket: ~$15,500 $350k LTCG at CA top bracket (no preference): ~$46,500 Total CA tax: ~$62,000 Wyoming saves Rachel ~$62,000/yr vs CA (and ~$46,600 vs CO). WY LLC benefits: anonymous filing, charging-order asset protection, series-LLC structure for multiple properties — all maintained at $60/yr annual report cost per LLC.

Statute references

• Constitutional bar on personal income tax — Wyo. Const. Art. 15 §16
• Sales tax (4% state) — Wyo. Stat. §39-15-104
• Economic nexus (Wayfair) — Wyo. Stat. §39-15-501
• Lodging tax — Wyo. Stat. §39-15-105(b)
• LLC anonymous formation — Wyo. Stat. §17-29-201
• Charging order as exclusive remedy — Wyo. Stat. §17-29-503
• Series LLC — Wyo. Stat. §17-29-211
• DAO LLC framework — Wyo. Stat. §17-31
• Private Trust Company — Wyo. Stat. §13-5
• Severance Tax — Wyo. Stat. §39-14
• Property Tax Refund (elderly) — Wyo. Stat. §39-13-109(c)(v)

Related pages

• State Tax Comparison →
• Multi-State Allocation →
• LLC vs S-Corp Election →