Wyoming has no state income tax and has never enacted one (Article 15, Section 18 of the Constitution makes any income tax hard to adopt by requiring full credit for sales, use and property taxes). The state also has no corporate income tax, no estate tax, and no inheritance tax. Sales tax is 4% state plus local option taxes of 0-3%. 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 are a major source of Wyoming’s government revenue.
At a glance
Key Facts
State Income Tax
None — Wyoming has never enacted one; Article 15, Section 18 of the Constitution requires full credit against any income tax for sales, use and ad valorem taxes paid in Wyoming
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; 0-3% local option taxes; food for home consumption exempt from state sales tax; prescription drugs exempt
Property Tax
Most property is assessed at 9.5% of fair market value, then the local mill levy is applied (100% for minerals, 11.5% industrial; residential rules changed under 2024 Amendment A)
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 ($15M per individual in 2026, OBBBA — permanent)
Mineral Revenue
Mineral-related taxes and royalties are a major source of state revenue; the Wyoming Permanent Mineral Trust Fund is worth billions of dollars
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 long record of having no income tax, a low overall tax burden, and a state culture that strongly embraces individual financial freedom and limited government.
Wyoming’s government revenue draws heavily on 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 Income Tax Limit
Wyoming has never enacted a personal income tax. Article 15, Section 18 of the Wyoming Constitution does not ban one outright, but it requires that any state income tax allow full credit against the liability for all sales, use and ad valorem taxes paid in Wyoming by the same taxpayer. That credit requirement makes an income tax difficult to adopt in practice.
Wyoming vs South Dakota: The Two Premier No-Tax States
Feature
Wyoming
South Dakota
Personal income tax
None (never enacted; credit requirement in Art. 15 §18)
None
Corporate income tax
None
None
Estate tax
None
None
Sales tax
4% + 0-3% local
State rate plus local (higher base rate than Wyoming)
Effective property tax rate
Varies by county (9.5% assessment ratio for most property)
Varies by county
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 on income, corporate, or estate tax — both states offer identical zero-tax treatment there. 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 and Assessment
Wyoming assesses most property at 9.5% of fair market value (100% for minerals and 11.5% for industrial property), and the local mill levy is applied to that assessed value. Residential property assessment has been subject to recent changes (2024 Amendment A), so check your county assessor for the current rate, exemptions and mill levy.
Wyoming Mineral Production Tax and Government Revenue
Wyoming's severance taxes on minerals, along with mineral property taxes and federal mineral royalties, are a major source of state and local revenue. Wyoming is a leading producer of coal, oil, natural gas, and uranium. The Wyoming Permanent Mineral Trust Fund — similar in concept to Alaska’s Permanent Fund — is 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 law allows long-duration trusts under its perpetuities statute (confirm the current limit with a Wyoming trust attorney). Wyoming’s trust framework includes:
Dynasty trusts: Long trust duration; assets can pass across many 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 (subject to statutory waiting periods and exceptions)
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
No estate tax
World-class skiing, outdoor recreation, and natural environment
Proximity to Yellowstone and Grand Teton National Parks
Strong private aviation infrastructure
Has made Teton County a popular choice for high-net-worth residents.
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.
âš 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 has never enacted a state income tax. Article 15, Section 18 of the Wyoming Constitution does not ban one outright but requires full credit against any income tax for sales, use and ad valorem taxes paid in Wyoming. 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 assesses most property at 9.5% of fair market value before applying the local mill levy (100% for minerals, 11.5% for industrial property). Residential property assessment has been subject to recent changes (2024 Amendment A), so rates and exemptions vary by county; check your county assessor for current figures.
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 (a multi-billion-dollar fund). Mineral revenues are a major source of state funding. 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 2026 exemption of $15 million per individual (OBBBA — raised from $13.99M in 2025 and made permanent). 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 0-3% in local option taxes. Importantly, Wyoming does not apply its state sales tax to food for home consumption. Prescription drugs are also exempt. South Dakota, by contrast, taxes groceries at its state sales tax 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 and a more rural environment. 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.