OUR TAXES

GOOD NEWS, BAD NEWS

Wyoming charges very low (or no) taxes on products, property, and services compared to other states. It has no individual or corporate income tax, and a host of exemptions for non-mineral businesses.

Depending on the year, about half of the State budget is supported by taxes paid by the minerals industry, with another 20-30 percent paid for with earnings from savings (investments) set aside during mineral booms of the past. This means the state budget relies on the mineral industry, in one way or another, for 60-80 percent of its revenue.

Most Wyoming households receive a wealth of state services for every dollar they contribute.

Calculate your tax-to-services ratio here.

Everyone loves low taxes! For 50 years, Wyoming citizens and non-mineral businesses have enjoyed very low tax rates, because taxes on coal, oil, and natural gas have heavily supported state, county, and town services, including local school districts.

But fossil fuel tax revenues are shrinking. We can prevent problems before they occur by doing more to pay our fair share.

WYOMING’S TAX STRUCTURE

SALES AND USE TAX: Keeping State Agencies Running

Of the 45 states in the US that have a sales and use tax, Wyoming ranks 3rd lowest. Wyoming currently taxes most sales at 4%, with a local option for a county or town to pass an additional 2%. Individual shoppers, industry - and increasingly, tourism - contribute to sales tax revenue.

Sales tax is one of three major sources of revenue to fund state operations and departments. The others are Mineral Severance Tax and Earnings from Investments.

Mineral Severance Tax is a sales tax paid to the state on minerals taken (severed) from the ground. At one time, severance taxes paid the lion's share of our state taxes, but that share has declined. The amount of tax revenue depends on volatile market rates – how much customers around the world are willing to pay for oil, gas, and other products. This revenue is risky to plan our future on.

More About Sales Tax: from the Wyoming Department of Revenue

PROPERTY TAX: Supporting Counties, Towns, and Education

Property taxes (from industries and residents) are how we pay for K-12 education, county government, and towns. Locally approved property taxes also support special districts and community colleges in counties that host them. Property tax enables us to educate our future leaders and keep our communities livable.
Among the 9 states without an income tax, Wyoming’s residential property tax rate is the very lowest. Among all states, Wyoming is fourth lowest for residential property tax. Residential and most non-mineral business property in Wyoming is assessed at 9.5% of fair market value.
Recent increases in the amount of property tax homeowners pay mainly comes from buyers (many of them moving to Wyoming during the Covid pandemic) being willing to pay higher prices for property. Although tax rates remained low, high purchase prices caused fair market values to rise sharply, which resulted in higher taxes. In 2023 and again in 2024, the State expanded assistance to lower-income homeowners, long-time homeowners age 65 and over, and veterans. Homeowners must apply for these exemptions and refunds to receive them. Speak with your County Treasurer or Assessor to learn more about your property tax.
Mineral ad valorem tax is a property tax paid to the county on the market value of the produced oil, coal, gas, or other mineral resource. It is assessed at 11.5% of fair market value. Like severance tax, revenue from ad valorem tax goes up and down with market demand.
Property tax in a nutshell 2-page PDF
Property tax by state and county across the US

OTHER TAXES

Fuel Tax: Buyers of gas and diesel in Wyoming pay a tax of $0.24/gallon. This includes a $0.01 tax to fund environmental clean-up costs for leaking underground storage tanks. The rest goes to the state’s Highway Fund, and matches federal funds to pay for roads and infrastructure. The current national average fuel tax is $.36/gallon.

Alcohol Excise Tax: Wyoming taxes $0.02/gal on Malt Beverages, $0.28/gal on Wine, and $0.94/gal on Spirits. Alcohol taxes make up a very small amount of our state’s general fund and reserve account to pay for general government services.

Tobacco and Nicotine Excise Tax: Cigarettes are taxed at $0.60 per pack, and other nicotine products, including e-cigarettes, are taxed 15-20% of wholesale purchase price. Wyoming also taxes moist snuff at $0.60 per oz. Though some revenue from nicotine and tobacco go to the state’s general fund for general services, most revenue goes back to the community.

Lodging Tax: The 5% lodging tax is Wyoming’s most recently implemented statewide tax. After January 1, 2021, towns and counties receive 2% of those lodging tax revenues for local use and the remaining 3% goes to the state to grow Wyoming tourism. A county may charge an additional 2% if local voters approve, for a maximum lodging tax of 7%.

how the state shares with local governments

The State of Wyoming shares about 30% of its sales tax revenues, and smaller percentages of its fuel and severance tax revenues, to support operations of counties and towns. See pages 13-17 in the Wyoming County Commissioners Association Revenue Estimating Manual for FY 2024.

Twice a year, local governments also receive a “direct distribution” from the state, based on a formula linked to population, local sales tax revenues, and other considerations. The formula is reviewed and voted on by the Legislature each budget session.

In 2023, these direct distributions ranged from about $75,400 to $2.7 million, depending on the county. (See page 17 in the WCCA Revenue Estimating Manual mentioned above).

Due to state laws limiting local tax options, many towns and counties in Wyoming rely heavily on direct distribution to balance their budgets.

A thriving Wyoming provides high-quality, consistent public services like education, health care, and infrastructure well into the future. It’s the best way to keep our young people and our communities close and connected.