The Tax Foundation

Research Areas

Wyoming

The Facts on Wyoming's Tax Climate

Here are some basic facts on Wyoming’s tax system and how it compares to other states:

Tax Freedom Day Arrives on April 20 in Wyoming
Tax Freedom Day is the day when Americans finally have earned enough money to pay off their total tax bill for the year. In 2008, Wyoming taxpayers had to work until April 20 to pay their total tax bill, ranking it 21st highest in the nation. This is three days before the national Tax Freedom Day (April 23). The Tax Freedom Days of neighboring states were: Montana, April 8 (ranked 48th nationally); South Dakota, April 12 (ranked 41st nationally); Nebraska, April 19 (ranked 25th nationally); Colorado, April 23 (ranked 15th nationally); Utah, April 21 (ranked 17th nationally); and Idaho, April 20 (ranked 19th nationally).

Tax Freedom Day has been projected using the most up-to-date economic and budget projections from official government agencies. However, Tax Foundation estimates of average state and local tax rates for 2008 will not be released until later this spring as we await more up-to-date data from various government agencies.
Full study of Tax Freedom Day, nationwide and in each state

Wyoming's State/Local Tax Burden Third-Lowest in Nation
Estimated at 7.0% of income, Wyoming's state and local tax burden percentage ranks 48th highest nationally, well below the national average of 9.7%. Wyoming taxpayers pay $3,714 per capita in state and local taxes.
Wyoming's State-Local Tax Burden, 1977-Present
Other States' State/Local Tax Burdens
Historical Chart Comparing All States' State/Local Tax Burdens from 1977 to 2008

Wyoming's 2008 Business Tax Climate Ranks 1st
Wyoming ranks 1st in the Tax Foundation's State Business Tax Climate Index. The Index compares the states in five areas of taxation that impact business: corporate taxes; individual income taxes; sales taxes; unemployment insurance taxes; and taxes on property, including residential and commercial property. Neighboring states ranked as follows: Montana (6th), South Dakota (2nd), Nebraska (43rd), Colorado (13th), Utah (17th), and Idaho (31st).
50-State Comparison of Business Tax Climates (data only)
2008 State Business Tax Climate Index, Fifth Edition (full study)

Wyoming Levies No Personal Income Taxes
Wyoming levies no individual income taxes, joining six other states with the same policy. This makes the tax environment in Wyoming very competitive compared to other states.
50-State Table of Individual Income Tax Rates
50-State Table of State Individual Income Tax Collections
50-State Table of State and Local Individual Income Tax Collections Per Capita

Wyoming Levies No Corporate Income Taxes
Wyoming, in addition to collecting no personal income taxes, collects no corporate income taxes. Only four other states (Nevada, Texas, South Dakota and Washington) join Wyoming in levying neither income tax.
50-State Table of Corporate Income Tax Rates, 2000-2008
50-State Table of State and Local Corporate Income Tax Collections Per Capita and Per Household, 2005
50-State Table of State Corporate Income Tax Collections Per Capita, 2006

Wyoming Levies Sales Tax below National Median; Gasoline Taxes among the Lowest in the Nation
Wyoming levies a 4% general sales or use tax on consumers, which is below the national median of 5.4%. State and local governments combined collect $1,619 per capita in general sales taxes, which ranks 6th highest nationally. Wyoming's gasoline tax stands at $0.14 per gallon, which ranks 2nd lowest nationally. Wyoming's cigarette tax stands at 60 cents per pack of twenty and ranks 36th highest nationally. The sales tax was adopted in 1947, the gasoline tax in 1935 and the cigarette tax in 1923.
50-State Table of Sales and Excise Tax Rates
50-State Table of State and Local General Sales and Gross Receipts Tax Collections Per Household and Per Capita, Fiscal Year 2005

Wyoming Property Taxes: Among the Nation's Highest
Wyoming is one of the 37 states that collect property taxes at both the state and local levels. As in most states, local governments collect far more revenue. Wyoming's localities collected $544,154,000 in property taxes in fiscal year 2004, which is the latest year the Census Bureau published state-by-state property tax collections. At the state level, Wyoming collected $139,809,000 in property taxes during FY 2004, making its combined state/local property taxes $683,963,000. That brings its per capita collection to $1,352, ranking 10th highest nationally.
State and local property tax collections per capita by state

Federal Tax Burdens and Expenditures: Wyoming is a Beneficiary State
Wyoming taxpayers receive more federal funding per dollar of federal taxes paid compared to the average state. Per dollar of Federal tax collected in 2005, Wyoming citizens received approximately $1.11 in the way of federal spending. This ranks the state 23rd highest nationally and represents a slight rise from 1995, when Wyoming received $1.08 per dollar of taxes in federal spending (23rd highest). Neighboring states and the amount of federal spending received per dollar of federal taxes collected were: Montana ($1.47), South Dakota ($1.53), Nebraska ($1.10), Colorado ($0.81), Utah ($1.07), and Idaho ($1.21).
Comparing the amount of federal taxes sent to Washington with the amount of federal spending coming back to the state

Articles from the Tax Foundation