There are numerous reasons why those who live in Jackson Hole have chosen to have their primary residences here. Some of those reasons are emotional, such as the sheer beauty of the natural surroundings and the overall quality of life. Other reasons are more practical in scope and include Wyoming’s overall tax-climate benefits when compared to all other states.
For years, Bloomberg has rated Wyoming as the most tax-friendly state in the United States. The Tax Foundation has ranked Wyoming as number one in its 2021 State Business Tax Climate Index—a ranking benefitting primarily from the state’s absence of both corporate and individual income taxes, as well as a low sales tax rate.
The following are the 10 top tax benefits offered by Brian Jones, formerly of J. Singleton Financial.
1. No state income tax: With no state tax on personal or corporate income, “you have more disposable income,” Jones says.
2. No inheritance tax or estate tax: “Wyoming repealed its estate tax as of January 1, 2005,” Jones says.
3. Dynasty trusts: In Wyoming, you can shield your real estate from federal estate taxes for up to 1,000 years through a dynasty trust. Multiple generations can make use of and enjoy the property, without having to pay estate taxes or worse, having to sell the property to pay the taxes. A key point to remember: The trust must be administered in Wyoming.
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.”
7. No excise taxes: When you fill-up your car or buy groceries in Wyoming, you won’t pay any state tax on either.
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.