Business Costs

A key benefit of doing business in Wyoming is not having to pay corporate or personal income taxes. Besides allowing business owners to enjoy higher earnings, the lack of an individual income tax contributes to a lower cost of labor in the state.

Wyoming ranks #1 for business-friendly taxation on Tax Foundation’s State Business Tax Climate.

Taxes—what taxes?

  • No corporate state income tax
  • No personal state income tax
  • No inventory tax
  • Sales and use tax base rate of 4% with 2% county optional tax
  • Sales and use tax exemption on equipment used directly and predominantly in the manufacturing process, for manufactures in the 31-33 NAICS Classifications.

Looking for small business tax incentives? Wyoming does not have tax incentives because Wyoming already has very low taxes. According to the Wyoming Taxpayers Association, Wyoming’s personal tax burden is the second lowest in the nation. Wyoming’s major yearly personal taxes are about 4 percent of income, while the regional average ranges from 7 percent to 9 percent. The national average varies from 8 percent to 10 percent, depending on income level.

Who pays taxes in Wyoming?

Wyoming’s largest source of revenue is mineral extraction with the second being the tourism industry. This means citizens and businesses have one of the lowest tax burdens in the country.

In 2002, Mining and Extraction contributed $4.49 billion to Wyoming Gross State Product or 26.74% of all private industry in Wyoming. Mineral Production is taxed as property tax, although it is in fact a severance tax based on market value of the natural resource being severed. Wyoming taxes minerals at 100% of value, unlike “other” property taxes, which are taxed at rates between 9.5 and 11.5%. In the end, because of higher valuations than other lands and higher tax rates, mineral production ends up paying 94.4% of all “property taxes” paid to the State of Wyoming.

In 2003, Tourism contributed $87.6 million to state and local tax receipts, with money coming from state and local sales tax, local sales, lodging tax and gasoline.

Wyoming’s property taxes are low compared to most other states. The state assesses agricultural lands at 9.5% of agricultural value; residential and commercial at 9.5% of fair market value; industrial at 11.5% of fair market value; and minerals at 100% of fair market value. To calculate residential and commercial taxes, use the following equation: (Fair Market Value x 9.5%) x Local Mill Levy Rate = Property Tax

For-profit corporations, limited liability corporations, limited partnerships and registered limited liability partnerships do pay an annual license tax/franchise fee to the Wyoming Secretary of State. This fee is based on a company’s assets located and employed in Wyoming. Non-profit corporations pay a flat fee of $25.

For more information, visit the Wyoming Department of Revenue.