Good old taxes. For many Americans, it's not just the feds who take their cut. Their state governments do so, as well.
Personal Income Tax Laws in General
Most states levy a personal income tax in addition to the taxes collected by the federal government. Personal income taxes make up about 20 percent of state revenue in states that levy it, but property taxes make up the largest portion of most state revenues, according to the U.S. Census Bureau. That means states that don't collect income tax must either make up the revenue elsewhere or spend less on public resources such as schools and libraries.
Wyoming Does Not Collect Personal Income Tax
Some states, including Wyoming, don't collect personal income taxes but states still require a steady flow of revenue to pay for public goods such as education and infrastructure. Much of these taxes are collected via higher than average property taxes levied by local governments throughout the state.
Where Does Wyoming Get its Revenue?
Wyoming makes up for the lack of income tax through lower than average spending on social programs and public infrastructure, but also has higher than average sales tax. In fact, about half of its revenue is from sales tax. The current sales tax in Wyoming is 4 percent, which can be more when local taxes are added. It isn't the highest sales tax rate in the country, but is similar to rates in other states that lack an income tax.
Motor vehicle sales and use taxes make up most of the state's other source of revenue. Remember that Wyoming state taxes coexist with federal tax laws. Federal taxes are handled by the Internal Revenue Service (IRS) and are subject to the Internal Revenue Code (IRC). Many IRS forms and publications are available online.
Learn more about Wyoming personal income tax laws (or the lack thereof) and income taxes in general in the links below. For information about federal personal income taxes, see FindLaw's Paying Taxes section.
| Code Section | No personal income tax |
| Who is Required to File | - |
| Rate | - |
| Federal Income Tax Deductible | - |
| Federal Income Used as Basis | - |
Note: State laws are constantly changing -- contact a Wyoming tax attorney or conduct your own legal research to verify the state law(s) you are researching.
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