Wyoming State Tax Guide 2025

Welcome to Wyoming! As you plan your move to the "Cowboy State," understanding the local tax landscape is essential for your financial planning. Wyoming is renowned for its tax-friendly environment, particularly regarding income and retirement taxes.

Here is a comprehensive overview of what to expect in 2025.

1. Income Tax

Wyoming is one of the few states in the U.S. that does not levy a tax on personal income.

• Rate: 0%
• Structure: N/A (Wyoming does not have a state income tax system).
• Details:
  • You will not pay state income tax on wages, salaries, bonuses, or self-employment income.
  • Because there is no income tax, there are no state tax returns to file for individuals.
  • Note: You are still required to file federal income tax returns with the IRS.

2. Sales Tax

Wyoming has a relatively low state sales tax, though total rates can vary depending on local jurisdictions.

• State Rate: 4.0%
• Local Taxes: Counties and municipalities may impose additional sales taxes.
  • The combined state and local rate typically ranges from 4% to 6%, depending on the specific location.
• What is Taxable: Most goods and many services are subject to sales tax.
• Food Tax: Unlike some states, Wyoming generally taxes groceries at the full state sales tax rate (4%), though local taxes may also apply.

3. Property Tax

Wyoming property taxes are among the lowest in the nation. The tax burden is calculated based on the assessed value of the property rather than the market value.

• Overview: Property taxes in Wyoming are primarily used to fund local governments, schools, and special districts.
• Assessment Rates:
  • Residential: Assessed at 9.5% of the property's fair market value.
  • Agricultural/Open Land: Assessed at 9.5% of fair market value.
  • Commercial/Industrial: Assessed at 85% of fair market value.
• Effective Tax Rate: Because of the low assessment rates, the effective tax rate (total tax paid divided by market value) is generally quite low, often falling below 0.60% for residential properties.

4. Other Taxes

Wyoming’s tax structure extends beyond income and sales, though it remains favorable compared to national averages.

• Gas Tax: Wyoming imposes a fuel excise tax. As of 2025, the state tax on gasoline is approximately $0.24 per gallon (subject to legislative change). This is lower than the national average.
• "Sin" Taxes: Wyoming taxes alcohol and tobacco products.
  • Cigarettes: $0.60 per pack.
  • Alcohol: Specific excise taxes apply to beer, wine, and spirits, which are generally lower than national averages.
• Inheritance/Death Tax: None. Wyoming does not impose a state inheritance or estate tax. However, federal estate tax laws may still apply depending on the estate's value.
• Corporate Income Tax: Wyoming does not levy a corporate income tax on C-corporations. However, certain businesses may be subject to a Franchise Tax based on assets located within the state.

5. Retiree Taxes

Wyoming is considered one of the most tax-friendly states for retirees.

• Retirement Income: 0% State Tax.
  • Social Security benefits are not taxed at the state level.
  • Distributions from 401(k)s, IRAs, and pensions are not taxed by the state.
• Sales Tax Impact: Since there is no income tax, retirement income is not reduced by state levies. However, retirees will pay sales tax on goods and services purchased within the state.

6. Comparison to Neighbors

Wyoming stands out for its lack of income tax compared to its regional neighbors.

Disclaimer: Tax laws are subject to frequent changes and can vary based on individual circumstances. The information provided in this guide is for general informational purposes only and is based on data available for 2025. Please consult a certified public accountant (CPA) or tax professional for advice specific to your financial situation.