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 has ranked #1 for business-friendly taxation on Tax
Foundation’s State Business Tax Climate Index every year, 2003-2008! Click here for more details
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.
