Tax Benefits

Wyoming: an ideal place to live and invest in real estate

TAX INFORMATION

Buffalo in Grand Teton National Park

Buffalo in Grand Teton National Park

Being a Wyoming resident provides exceptional tax benefits.

Highlights, which you  can discuss with your legal and tax advisers, include no state income tax, corporate tax, estate tax, capital gains tax or trust tax, excise tax, sales and property taxes are among the lowest in America.

Additionally, Wyoming has adopted a progressive version of the Uniform Trust Code and has extended the Rule against Perpetuities to 1000 years for trusts administered in Wyoming. It is one of just a few states where a family trust company can be formed and administered without regulation by the State Banking Commission.

Wyoming has recently legalized asset protection trusts for qualified asset and allows ownership of real and personal property in forms that provide significant asset protection as compared to other states.

Wyoming’s progressive trust and asset protection laws combined with its being a “no tax” state makes it the best on-shore tax haven in the United States. It has been consistently rated as the #1 most wealth-friendly state by Bloomberg Wealth Manager and other similar publications.

pdf_iconOpportunities for Wealth Preservation and Planning in Wyoming [PDF]
by Christopher M. Reimer

Brian Jones is the Senior Vice President at The Bank of Jackson Hole. He has elaborated on 10 good reasons to move to Jackson Hole and the State of Wyoming.

  • No state income tax
  • Dynasty trusts
  • No inheritance tax
  • No state gift tax
  • No retirement income tax
  • Low property taxes
  • No excise taxes
  • No tax on mineral ownership 
  • No intangible taxes
  • No tax side on sale of real estate

1. No State Income Tax

With no state tax on personal or corporate income, “you have more disposable income,” Jones says.

2. Dynasty Trusts

In Wyoming, you can shield your real estate from federal estate taxes for up to 1,000 years through a dynasty trust. “You can establish a trust in Wyoming for the benefit of your family or other beneficiaries,” Jones says. “You can transfer your real estate into a limited liability company or family partnership and then put that into the ‘dynasty trust,’ which can continue for a thousand years.” As a result, multiple generations can make use of and enjoy the property, without having to pay estate taxes or worse, having to sell the property in order to pay the taxes. A key point to remember: The trust must be administered in Wyoming.

3. No Inheritance or Estate Tax

“Wyoming repealed its estate tax as of January 1, 2005,” Jones says.

4.  No State Gift Tax

“Somebody who owns property in Wyoming can ‘gift’ that real estate to their heirs without having to worry about paying a state gift tax,” Jones says.

5. No Tax on Out-of-State Retirement Income

“A lot of people in Jackson Hole use Wyoming as a second home,” Jones says. “They have retirement income that comes from other states where they may be a resident. Wyoming doesn’t tax that retirement income that’s earned outside of Wyoming, which is certainly beneficial.”

6. Low Property Taxes

“Wyoming has very low property taxes compared to other states,” Jones says. “The taxes that you do pay here are based on the assessed value of the property.” For Teton County, he says, the rate is 1.2 percent of a property’s assessed value. The rate for the city of Jackson is 8/10 of one percent.

7. No Excise Taxes

When you fill up your car’s gas tank or buy a bag of groceries in Wyoming, you won’t pay any state tax on your gas or food.

8. No Tax on Mineral Ownership

“A lot of states charge owners a tax on their mineral ownership, but Wyoming does not,” Jones says. “If you own minerals, you won’t pay a tax on it like you would your home.”

9. No Intangible Taxes

Wyoming doesn’t make you pay a tax on financial assets like stocks and bonds.

10. No Tax on the Sale of Real Estate

Wyoming does not tax the sale of real estate.

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