When comparing tax friendly states across the US, Wyoming offers significant benefits. According to The Tax Foundation’s State Business Tax Climate Index, which enables business leaders, government policymakers, and taxpayers to gauge how their states’ tax systems compare, Wyoming was once again ranked #1 for 2022.
With no state tax on personal or corporate income, you have more disposable income.
Wyoming real estate sales are not taxed.
Wyoming has very low property taxes compared to other states. The taxes that you do pay here are based on the assessed value of the property.
In Wyoming, you can shield your real estate from federal estate taxes for up to 1,000 years through a dynasty trust, which can be established in Wyoming for the benefit of your family or other beneficiaries. You can transfer your real estate into a limited liability company or family partnership and then put that into the dynasty trust, which can continue for a thousand years. As a result, multiple generations can make use of and enjoy the property, without having to pay estate taxes or worse, having to sell the property in order to pay the taxes. A key point to remember: The trust must be administered in Wyoming.
People in Jackson Hole who use Wyoming as a second home may have retirement income that comes from other states where they are a resident. Wyoming does not tax that retirement income earned outside of Wyoming, and if the participant is a resident of Wyoming when they take that income then the original state cannot tax that income either.
Somebody who owns property in Wyoming can ‘gift’ that real estate to their heirs without having to worry about paying a state gift tax.
Wyoming does not assess any state inheritance tax. Wyoming repealed its estate tax as of January 1, 2005.
When you fill up your car with gas or buy a bag of groceries in Wyoming, you will not pay any state tax on your gas or food.
Many states charge owners a tax on their mineral ownership, but Wyoming does not.
Wyoming doesn’t make you pay a tax on financial assets like stocks and bonds.