Wyoming has no state income tax — the Wyoming Constitution forbids it. The state also has no corporate income tax, no estate tax, and no inheritance tax. Property taxes average approximately 0.58% effective rate, among the absolute lowest in the USA. Sales tax is 4% state plus local additions up to 2%. Wyoming has been actively competing with South Dakota for trust and LLC business, implementing strong asset protection laws and dynasty trust provisions. Oil, gas, and mineral revenues fund the majority of Wyoming’s government operations.
At a glance
Key Facts
State Income Tax
None — Wyoming Constitution Article 15 prohibits a state income tax; constitutional change would require a two-thirds legislative vote plus voter approval
Corporate Income Tax
None — Wyoming has no corporate income tax of any kind; C-corps, S-corps, LLCs, and partnerships all pay zero Wyoming income tax
Sales Tax
4% state rate; counties add up to 2%; typical combined rate 5–6%; no sales tax on groceries; prescription drugs exempt
Property Tax
Effective average ~0.58% — among the absolute lowest in the USA; Wyoming assesses residential property at 9.5% of fair market value, then applies the mill rate to that assessed value
Trust and Asset Protection Laws
Wyoming dynasty trusts (no rule against perpetuities); Domestic Asset Protection Trusts (DAPTs); strong LLC charging order protection; among the best in the nation
Estate and Inheritance Tax
No Wyoming estate tax; no Wyoming inheritance tax; only federal estate tax applies ($13.61M per individual in 2024)
Mineral Revenue
Oil, gas, coal, and mineral extraction taxes fund ~50% of Wyoming state revenue; Wyoming Permanent Mineral Trust Fund holds $10+ billion in assets
Introduction
Wyoming and South Dakota have engaged in a friendly competition over the past decade to attract wealth management business and high-net-worth relocations. Both states have no income tax, no estate tax, and exceptional trust laws. Wyoming’s selling points are its constitutional income tax prohibition (providing additional certainty), the lowest effective property tax rates in the nation, and a state culture that strongly embraces individual financial freedom and limited government.
Wyoming’s economy is funded primarily by oil, gas, and mineral extraction — a revenue model that allows the state to provide government services without taxing residents’ income. Like Alaska, this resource-funded model creates a unique fiscal situation where residents are net beneficiaries of the state’s natural wealth. For high-income individuals, business owners, and wealthy families considering their tax domicile, Wyoming represents one of the most compelling combinations of low taxation, strong legal protections, and genuine quality of life — particularly for those who value wide open spaces and outdoor recreation.
Section 01
Wyoming’s Constitutional No-Tax Framework
Wyoming’s income tax prohibition is embedded in the state constitution — Article 15 of the Wyoming Constitution prohibits a state income tax. Changing this would require a two-thirds supermajority in both chambers of the state legislature followed by approval by Wyoming voters in a referendum. This dual requirement makes the income tax prohibition extremely durable, providing far more certainty than states where the legislature could simply pass an income tax with a simple majority vote.
Wyoming vs South Dakota: The Two Premier No-Tax States
Feature
Wyoming
South Dakota
Personal income tax
None (constitutional prohibition)
None (voter approval required to add)
Corporate income tax
None
None
Estate tax
None
None
Sales tax
4% + local (up to 6%)
4.5% + local (up to 6.5%)
Effective property tax rate
~0.58% (lowest in USA)
~0.57% (near lowest)
Trust laws
Excellent (dynasty trusts, DAPTs)
World-class (largest trust industry)
LLC protections
Very strong charging order protection
Strong charging order protection
Population / Urban options
Smaller (Cheyenne, Casper)
Larger (Sioux Falls, Rapid City)
The choice between Wyoming and South Dakota for domicile purposes often comes down to lifestyle preferences rather than tax differences — both states offer essentially identical tax advantages. Wyoming is preferable for those who want larger lots, outdoor recreation (Grand Teton, Yellowstone), and a more rural lifestyle. South Dakota’s Sioux Falls is the larger economic center and has more extensive financial services infrastructure.
Wyoming’s LLC Structure Advantages
Wyoming is widely regarded as having some of the strongest LLC protections in the United States:
Charging order as exclusive remedy: Under Wyoming law, a creditor of an LLC member can only obtain a charging order — the right to receive distributions if and when the LLC makes them — but cannot foreclose on the membership interest or force the LLC to make distributions. This limits creditor remedies significantly.
Single-member LLC protections: Wyoming specifically extended charging order protection to single-member LLCs, a key advantage over many states where single-member LLCs had weaker protections.
No public disclosure requirements: Wyoming does not require LLC member names to be publicly disclosed in state filings, providing meaningful privacy.
Zero state tax on LLC income: Pass-through income from Wyoming LLCs is not subject to any state income tax.
Section 02
Wyoming Property Taxes: Lowest in the Nation
Wyoming’s effective property tax rate of approximately 0.58% is consistently among the two or three lowest in the United States. The state achieves this through a combination of low mill rates and a unique assessment system that applies to only a portion of the property’s fair market value.
Wyoming’s Assessment System
Wyoming assesses residential properties at 9.5% of fair market value (not 100%, as in most states). The mill rate is then applied to this assessed value. This means:
A home with a fair market value of $500,000 has an assessed value of $500,000 × 9.5% = $47,500
At a typical mill rate of 60 mills (0.06 or 6%), the annual property tax is $47,500 × 6% = $2,850
Effective rate: $2,850 / $500,000 = 0.57%
Wyoming Property Tax by County
County
Approximate Effective Rate
Annual Tax on $400K Home
Annual Tax on $700K Home
Laramie County (Cheyenne)
~0.59%
~$2,360
~$4,130
Natrona County (Casper)
~0.55%
~$2,200
~$3,850
Teton County (Jackson Hole)
~0.49%
~$1,960
~$3,430
Campbell County (Gillette)
~0.62%
~$2,480
~$4,340
Teton County (Jackson Hole) is particularly notable: despite having median home values well over $1 million, the effective property tax rate is approximately 0.49% — among the very lowest in the country. A $2 million Jackson Hole home would carry annual property taxes of approximately $9,800, compared to $25,000–40,000+ for comparable properties in New Jersey or Illinois.
Wyoming Mineral Production Tax and Government Revenue
Wyoming’s ability to maintain low property taxes while funding government services stems primarily from its severance taxes on mineral extraction. Wyoming is a leading producer of coal, oil, natural gas, and uranium. Severance taxes on these resources, along with federal mineral royalties, fund approximately 40–60% of state revenue in most years. The Wyoming Permanent Mineral Trust Fund — similar in concept to Alaska’s Permanent Fund — holds over $10 billion in assets invested for long-term state fiscal stability.
Section 03
Wyoming Trust Laws, Estate Planning, and the Full Tax Picture for Movers
Wyoming Dynasty Trusts and Asset Protection
Wyoming eliminated the rule against perpetuities in 1993, allowing trusts to last indefinitely. Wyoming’s trust framework includes:
Dynasty trusts: No time limit on trust duration; assets can pass across unlimited generations without forced distribution or termination
Qualified Self-Settled Spendthrift Trusts (QSSTs): Wyoming’s version of a domestic asset protection trust; allows grantors to be discretionary beneficiaries of their own irrevocable trusts while protecting assets from future creditors (after a 4-year seasoning period)
Directed trusts: Wyoming allows the separation of investment and administrative functions in trusts, giving families control over investments while maintaining legal protections
Confidentiality: Wyoming trusts do not need to be registered or filed publicly, maintaining privacy
No state income tax on trust income: Trust income accumulated in Wyoming trusts escapes state income tax entirely
Wyoming for Jackson Hole High Earners
Teton County (Jackson Hole) has become one of the most prominent examples of a luxury tax haven within the United States. The combination of:
Zero state income tax
Among the lowest effective property tax rates in the nation (0.49%)
No estate tax
World-class skiing, outdoor recreation, and natural environment
Proximity to Yellowstone and Grand Teton National Parks
Strong private aviation infrastructure
Has attracted an extraordinary concentration of billionaires, hedge fund managers, tech founders, and other ultra-high-net-worth individuals. Jackson Hole is estimated to have one of the highest concentrations of billionaires per capita of any small town in the United States.
Whether you’re relocating to Wyoming or structuring a Wyoming LLC or trust, TaxHub connects you with licensed CPAs who understand Wyoming’s unique tax advantages and can help you structure your finances correctly.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
If you have international assets or foreign income alongside your Wyoming residency, Greenback’s specialists handle complex cross-border and multi-jurisdiction tax situations.
⚠ Not the cheapest option — best for complex situations and expats who want a dedicated CPA.
No — Wyoming’s state constitution explicitly prohibits a state income tax. Article 15 of the Wyoming Constitution forbids income taxation, and changing this would require a two-thirds supermajority in the legislature plus voter approval in a referendum. Wyoming has no personal income tax, no corporate income tax, no tax on capital gains, no tax on dividends, and no tax on retirement income at the state level.
Q
What are Wyoming’s property tax rates?
Wyoming has the lowest or second-lowest effective property tax rate in the USA, averaging approximately 0.58%. Wyoming uses an unusual assessment system where residential property is assessed at only 9.5% of fair market value before applying the mill rate. In practice, a $500,000 home pays approximately $2,850 in annual property taxes. Jackson Hole (Teton County) has an effective rate of approximately 0.49% despite very high home values — a $2 million home there carries roughly $9,800 in annual property taxes.
Q
What makes Wyoming good for LLC formation?
Wyoming is one of the top states for LLC formation due to its strong charging order protection (the exclusive creditor remedy against an LLC member is limited to receiving distributions, with no ability to foreclose on membership interests), protection extended to single-member LLCs, no public disclosure of member names in state filings, and zero state income tax on pass-through income. Wyoming LLCs are commonly used for asset protection, holding real estate, and business operations by residents of any state.
Q
How does Wyoming fund government without income taxes?
Wyoming funds state government primarily through severance taxes on mineral extraction (coal, oil, natural gas, uranium), federal mineral royalties, sales taxes, and investment returns from the Wyoming Permanent Mineral Trust Fund (which holds over $10 billion in assets). In strong commodity price years, mineral revenues can fund 50–60% of state expenditures. This model is similar to Alaska’s oil-funded government. The dependency on commodity revenues does create fiscal volatility in low-price environments, but Wyoming’s Permanent Trust Fund provides a buffer.
Q
Does Wyoming have estate or inheritance taxes?
No — Wyoming has no state estate tax and no state inheritance tax. Only the federal estate tax applies to Wyoming residents, with a 2024 exemption of $13.61 million per individual. Wyoming’s dynasty trust laws allow wealthy families to pass assets across multiple generations while minimising federal estate and generation-skipping transfer tax exposure through carefully structured irrevocable trusts.
Q
What is Wyoming’s sales tax rate?
Wyoming’s state sales tax rate is 4%, one of the lowest among states that have a sales tax. Counties can add up to 2%, with most of Wyoming at a combined 5–6%. Importantly, Wyoming does not tax groceries — unprepared food for home consumption is exempt from the sales tax. Prescription drugs are also exempt. This exemption for groceries provides meaningful savings compared to South Dakota, which taxes groceries at its full 4.5% rate.
Q
Why do people choose Wyoming over South Dakota for trust and LLC planning?
Wyoming and South Dakota are both exceptional trust jurisdictions with very similar laws. Practitioners often say the choice comes down to lifestyle rather than legal substance. Wyoming is preferred by those who want Jackson Hole’s outdoor recreation lifestyle, a more rural environment, and slightly lower property tax rates. South Dakota has better developed financial services infrastructure in Sioux Falls and has a longer track record in the trust industry with more established trust companies. For LLCs, Wyoming’s charging order protections and privacy features are very strong and often cited as being slightly ahead of South Dakota in specific use cases.
Disclaimer:This guide provides general tax information for educational purposes only. Wyoming trust and LLC laws are complex; the above is an overview only. Asset protection trust effectiveness is highly fact-specific and timing-dependent. Always consult a qualified Wyoming attorney and tax professional before establishing trusts or LLCs for asset protection purposes. Tax rates and rules are subject to change.