It’s that time of year again—tax season. While in previous years, doing your taxes may have been headache-inducing, our Wyoming tax calculator can make figuring out your tax liability much easier!
If the thought of attempting to do your taxes on your own makes you cringe, you’ll be relieved to find you have other options. You can always take advantage of our knowledgeable tax experts who can help you calculate and file your Wyoming state taxes.
In addition to your federal taxes, you’ll also need to file your state taxes in Wyoming. It might seem redundant but state taxes are necessary to provide revenue for important public resources such as health, safety, and education programs. Still, it’s hard not to feel like you’re paying way too many taxes.
But, did you know that Wyoming is considered one of the most tax-friendly states in the nation? It's true! With no income taxes, and fair sales and property tax rates, Wyomingites have a considerably low tax burden considered to other Americans.
Plus, paying your Wyoming state taxes means that you’re contributing to making it a better place to live and work. So, when you pay your state taxes in Wyoming, try to think about how your tax dollars are being spent toward maintaining the majestic beauty of Yellowstone National Park, low crime rates, and a clean environment.
If you’re confused at all about taxes in Wyoming, contact Community Tax for a free consultation so you can learn more about the process or get assistance if you’re facing collection action. Our experts are here to help!
Wyoming has no personal income tax, therefore there are no Wyoming tax brackets and the income tax rate is 0%. While there aren’t any Wyoming tax brackets, you should still understand how tax brackets work when it comes to paying your federal income taxes.
For your federal taxes, there are seven tax rates, or brackets, ranging from 10% up to 37%, and each tax bracket applies to a specific income level. The IRS uses a progressive tax system, meaning that higher levels of income are taxed at higher rates. The rates that apply to your income level will depend on your filing status.
Sound confusing? It can be. But don’t fret, our tax professionals are here to help you through the filing process, whether you’re struggling with your Wyoming state taxes, federal taxes, or both.
There is no personal income tax in Wyoming—a huge perk for taxpayers. Since Wyoming doesn’t tax income, it’s also considered a retirement-friendly state. While there have been discussions about introducing an income tax, or strictly a tax for the wealthy, it seems unlikely that there will be an income tax in Wyoming anytime soon, if ever.
Before you get too excited, remember that you’ll still need to pay income taxes to the federal government and other Wyoming state taxes.
Since Wyoming doesn’t have income taxes, the state doesn’t have capital gains taxes either.
However, in the case of your federal taxes, the capital gains tax is imposed upon the sale of certain assets. If you’ve sold assets such as stocks, bonds, or real estate, you may owe capital gains taxes.
Don’t miss an important portion of your tax liability, if you think you might owe capital gains taxes, reach out to Community Tax for help. Otherwise, you might have to pay penalties for unpaid taxes!
Since there aren’t any income taxes, the state has to generate revenue in other ways, primarily through sales and property taxes. Still, Wyoming’s sales taxes are considerably low compared to other states.
The Wyoming state sales tax rate is 4%. However, each jurisdiction is able to implement their own additional sales tax rates. This means that sales tax can range from 4 to 6% depending on where you live. Considering states like Washington, Arkansas, and Louisiana have sales tax rates well over 9%, Wyoming sales taxes are low no matter what county you reside in
Sales taxes are typically charged on most goods and services, including tangible property, retail sales, and admission fees. However, sales taxes usually aren’t charged on groceries. These taxes are collected at the time of sale and are typically reflected on your receipt.
The majority of this statewide sales tax goes to the state general fund but some of it is allocated to each county. To generate the necessary funds for community projects, cities and counties take advantage of the additional taxes they can impose.
For goods from out of state, you’ll have to pay a 4% use tax. So, if you do a lot of online shopping from out-of-state vendors, this tax can add up. Use taxes should be filed On Form 44.
Excise taxes are a type of sales tax that are applied in addition to the sales tax. However, they only apply to certain items. Typically, excise taxes are imposed on goods or services that are non-necessities. Excise taxes are sometimes referred to as “sin taxes” because they’re charged on cigarettes and alcohol in an effort to reduce consumption.
Here are some of the most common excise taxes you should know about:
Each type of alcohol is subjected to different excise tax rates. Typically, the higher the alcohol content, the higher the tax. Here are the rates for different kinds of alcohol:
- Beer is taxed at 0.5¢ per liter
- Wine is taxed at 0.75¢ per 100 milliliters
- Spirits are taxed at 2.5¢ per 100 milliliters
Since these taxes are so small, you likely won’t notice the effect the taxes on heading out for a few drinks have on your wallet.
In Wyoming, most tobacco products are charged a 20% excise tax on the wholesale price. However, snuff is taxed at 60¢ per ounce and cigarettes are taxed at 60¢ per pack of 20.
Wyoming has some of the lowest cigarette taxes in the country, but it’s still higher than Missouri, Georgia, North Dakota, and Virginia. However, that’s nothing compared to the $4 or more that residents of New York and Rhode Island pay.
Drivers in Wyoming pay an extra 24¢ per gallon for both regular and diesel gasoline. That means that each time you fill up you’re paying about $3 extra which can add up. However, the revenue generated from these taxes typically goes back to improving infrastructure, like roads, and helping reduce the impact fuel usage has on the environment.
The federal health insurance penalty is no longer in effect as of 2019. And, in Wyoming, there is also no longer a penalty for not having health insurance for state resident
However, in addition to being advisable for your overall well-being, having health insurance and getting the healthcare you need can provide some tax relief. On your federal return, there is a deduction for medical expenses that exceed 7.5% of your adjusted gross income (AGI). Make sure to keep this in mind when filing your federal taxes this year.
The average property tax rate in Wyoming is 0.58%. But, your property tax rate may be higher or lower depending on where you live because each local jurisdiction decides on their own rate.
There are several factors that go into calculating your property tax bill. Generally speaking, it’s based on the tax rate of your city or county and the value of your home. Here are some terms you should understand in order to calculate your property taxes:
- Appraised Value:The fair market value of your home, which is determined by the appraiser
- Assessment Rate:The percentage of the appraised value that can be taxed
- Millage Rate:The millage rate is used to determine how heavily property is taxed. A mill is $1 of every $1,000 of assessed value.
Here’s how your property tax is calculated with an example. If your home has an assessed value of $100,000, the county’s assessment rate is 9.5, and your millage rate is 55 MIlls, you would calculate the tax bill as follows:
- Determine the Assessed Value
- The Assessed Value = Appraised Value x Assessment Rate
- Ex: $100,000 x 0.95 = $9,500
- Use the Assessed Value to get your final tax bil
- Tax Bill = Assessed Value x the Millage Rate
- Ex: $9,500 x 0.055 = $522.50
In this example, the property taxes you’d owe on the home would be $522.50. You can find your county’s or city’s assessment and millage rates on their official website.
In 2019, the median property tax bill of Wyomingites is approximately $1,058. However, homeowners in Teton County pay much higher taxes with an average property tax bill of $3,496. On the other hand, Weston County residents pay an average of $579 in property taxes.
As you can see it varies quite a bit and can be fairly demanding on your bank account. Since property taxes are substantial, it can often take taxpayers by surprise — especially those who are new homeowners. Make sure you’re not caught off-guard by budgeting appropriately ahead of time.
If you’re a veteran, you may be eligible for an exemption on your property taxes (which we’ll cover more in the exemptions section below), so make sure you check into it before paying your property tax bill.
There is no estate tax in Wyoming and there is no longer an inheritance tax on estates belonging to those who passed away after 2005.
However, if the individual was a resident of another state, you may owe taxes to that state on your inheritance. We understand that receiving an inheritance — especially one that might be taxed — can be complicated and overwhelming. For assistance, reach out to one of our experienced tax professionals today.
Tax credits are a common incentive offered by states that have income taxes, as well as by the federal government. Since Wyoming doesn’t have income taxes, there are no tax credits. So, that means that as of 2019, Wyoming doesn’t have an Earned Income Tax Credit (EITC), Child Tax Credit (CTC), or Child and Dependent Care Tax Credit (CDCTC) like many other states do.
However, they do offer certain exemptions that can lower your tax liability, which we’ll cover in the next section.
Exemptions are one of the incentives available to taxpayers on federal taxes and in most states. You typically want to take advantage of any exemptions that you qualify for. Exemptions are dollar-for-dollar values that are subtracted from your taxes, reducing how much you end up having to pay — and in some cases resulting in a refund
While there are fewer exemptions available to Wyoming taxpayers, this is because there are no income taxes. Other states offer more extensive tax relief programs because taxpayers have much greater tax liability. However, if you’re a veteran, you may be eligible for a property tax exemption.
The Veterans Property Tax Exemption is $3,000 for qualifying veterans or their spouse. You must be a current Wyoming resident and have lived in the state for three years in order to qualify.
Note: The application deadline for this exemption is the fourth Monday of May.
When preparing your federal income taxes, don’t forget to also look into available deductions. It’s usually only a good idea to itemize deductions on your federal taxes if the amount would be greater than the standard deduction you’re allowed based on your income and filing status.
The process for calculating your Wyoming tax refund will be very different from doing your federal taxes because you don’t need to worry about income taxes. While figuring out your state taxes should be much simpler, it’s still recommended that you use our Wyoming tax calculator to estimate how much you owe or even how much you might get back.
When doing your taxes, keep these important tips in mind to make the process as easy as possible:
- Make sure you file by the deadline
- Sales and Use Taxes: January 31st (for annual filers)
- Property Taxes: September 1st
Remember, you can also reach out to one of our tax experts for help! Whether it’s your first time filing your Wyoming state taxes, or your 20th time, the guidance of a seasoned tax professional can be invaluable. Plus, we even offer free consultations!
Since your sales and property taxes are collected by the county you live in, you will need to use your county’s official website. For example, if you live in Sweetwater County, you will visit their specific payment portal.
If it’s likely that you’ll owe a lot in taxes, try to prepare ahead of time by setting funds aside so you are not financially overwhelmed when the time comes to pay your tax bill.
While most of Wyoming’s tax policies are fairly standard, the state does have a few interesting practices:
In addition to your Wyoming state taxes, you’ll need to pay your federal taxes. While the Wyoming Department of Revenue oversees your state taxes, the Internal Revenue Service (IRS) manages federal taxes. So, you’ll need to use their website and resource.
Typically, it’s recommended that taxpayers complete their federal return before their state return. However, since Wyomingites don’t have income taxes, it really doesn’t matter which order you complete your tax returns. Since your federal return will be more complex, you still might want to get it out of the way ASAP. Remember, your federal income tax return is due on April 15th, or the following business day.
This information is accurate as of 2019. Special circumstances that can affect your tax return may apply.