Tax Advantage

Tax Advantages

Wyoming is considered one of the most tax-friendly states in the country. People flock to the idyllic Jackson Hole because of its scenic natural beauty, charming downtown, vibrant community, and the fact you can leave property to your children without worrying about being taxed on your hard-earned income. The following page highlights several of the primary benefits of living free of income tax in Wyoming.

No State Income Tax

In short, you will not have to pay a state tax on your income, which is especially valuable for those with higher incomes. Those with higher incomes typically play a higher state tax because state taxes, unlike property and sales taxes, are not based on the amount of money you make. 

Plus, the lack of state income taxes extends to retirement incomes, allowing you to add additional cash flow to your retirement fund. However, because of this tax rule, property and sales taxes might be higher, so it's essential to set up your finances with that in mind to try and maximize your personal assets when moving to Wyoming.

No Tax On Out-Of-State Retirement Income

Even if you're a primary resident in Wyoming, there is a chance you might have a second home somewhere else in the states. If you generate retirement income from another state where you're a resident, Wyoming will not tax that income, even if it is earned from another state. By the same token, if you are a Wyoming resident when you take that income, then the original state can't tax it either. Wyoming also does not tax social security.

Dynasty Trusts 

Wyoming is an increasingly attractive place to live for residents, property owners, and businesses because of its strong asset protection laws, lack of income taxes, and system of trusts. A dynasty trust can last in perpetuity, extending through several generations, allowing families to pass assets down without worry of an estate or generation-skipping transfer tax. 

You can turn a dynasty trust into a directed trust. For example, if you have a cherished family home, that house can be passed down from generation to generation without fear of having to sell the property to pay taxes. The trust can last up to 1,000 years, but remember, it must be administered in Wyoming.

Other Advantages

Besides income tax relief, Wyoming residents are granted relief from estate and gift taxation. There is no tax on corporate income either, and Wyoming real estate can be gifted to owners to heirs without state taxation. 

  • No excise taxes –– You won't pay taxes on gas or groceries
  • No mineral ownership tax –– Wyoming does not charge owners tax on mineral ownership 
  • No intangible taxes –– The state doesn't force residents to pay taxes on assets like bonds and stocks

Is Wyoming a Tax-Free State?

Addressing the many things that Wyoming doesn't tax might lead to some confusion from potential residents. Is Wyoming a tax-free state? The answer to that depends on what your definition of "tax-free" means. If you're primarily concerned about income tax, then yes, Wyoming is a tax-free state. However, that doesn't mean that Wyoming doesn't have any taxes at all, although it is one of only seven states in the country that doesn't require income taxes.

It's also considered a tax haven by many and has been consistently ranked as the #1 most wealth-friendly state by Bloomberg Wealth Manager and the #1 state for business taxes by Tax Foundation. As a result, it's an ideal location for anyone hoping to start a business. 

To recap, Wyoming doesn't require taxes on the following: Corporate, trust, real estate sales, retirement, capital gains, estate, income, and retirement income.

If you're considering purchasing Wyoming real estate or seeking luxury homes in Jackson Hole, reach out to Chris Pigusch today to schedule a consultation!

Work With Chris

Chris is unlike other agents in the Jackson Hole area. He both lives and works in Jackson and is able to help you either sell or settle into your new home right away. An experienced negotiator and communicator.

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