Wyoming has no corporate income tax, no personal income tax, no franchise tax and no gross receipts tax. The state funds itself largely through taxes on mineral production, especially coal, oil and natural gas. For businesses, the main state taxes are a 4% sales tax, property taxes and a $60 annual report fee. Wyoming also has strong privacy protections for LLCs, which has made it a popular place to form holding companies.
This guide covers Wyoming's business taxes for 2026, with worked examples and comparisons with its six neighbors.
Wyoming business taxes at a glance
A Wyoming corporation or LLC pays no state tax on profit, and its owners pay no state income tax. The only annual state fee for most businesses is the $60 minimum annual report license tax. Customers pay 4% state sales tax plus up to 2% county tax and specific purpose taxes. Businesses pay property tax on real estate and equipment, but not inventory. Mineral producers pay severance and ad valorem taxes. LLCs pay $100 to form.
No income or franchise tax
- C corporations pay no state income tax.
- LLC owners, partners and sole proprietors pay no state income tax.
- S corporation shareholders pay no state income tax.
- No franchise tax or gross receipts tax.
- Capital gains are not taxed.
Annual report license tax
| Wyoming assets | Annual tax |
|---|---|
| Up to $300,000 | $60 minimum |
| Over $300,000 | $0.0002 per dollar of Wyoming assets |
For example, a business with $1 million of Wyoming assets pays $200, and one with $10 million pays $2,000.
Sales and use tax
| Component | Rate |
|---|---|
| State sales tax | 4% |
| County general purpose tax | Up to 1% |
| County specific purpose tax | Up to 1% |
| Average combined rate | About 5.39% |
- Groceries are exempt.
- Manufacturing machinery is exempt.
- Services: Some services, including repairs, are taxable.
- Remote sellers with more than $100,000 of Wyoming sales must collect.
- Lodging: A statewide 5% lodging tax applies on top of sales tax.
Payroll and property taxes
- Unemployment insurance: Employers pay on a wage base above $30,000.
- Workers' compensation: Provided through a state fund, which most employers must use.
- Property tax: Commercial property is assessed at 9.5% of market value, and industrial property at 11.5%. Rates are low compared with most states. Business inventory is exempt.
- Mineral taxes: Severance taxes and ad valorem taxes on production fund a large share of state and local budgets.
Forming a business in Wyoming: fees and ongoing costs
| Item | LLC | Corporation |
|---|---|---|
| Formation filing fee | $100 | $100 |
| Annual report license tax | $60 minimum | $60 minimum |
| Registered agent | Required | Required |
Worked example: $500,000 of profit
| Step | Amount |
|---|---|
| Taxable income | $500,000 |
| Wyoming income tax | $0 |
| Federal tax at 21% on $500,000 | $105,000 |
| Total income tax | $105,000 (21%) |
For a single LLC owner with $150,000 or $75,000 of profit, Wyoming income tax is $0.
How Wyoming compares with its neighbors
Wyoming and South Dakota are the region's only states with no income tax, and Wyoming has the lower sales tax. Montana has no sales tax but taxes income.
Choosing an entity in Wyoming
Because there's no income tax, entity choice is driven by federal taxes and liability.
- LLC: $100 to form and $60 a year; strong privacy and charging-order protection.
- S corporation: Federal payroll tax savings with no state income tax.
- C corporation: Only the 21% federal rate applies.
- DAO LLC: Wyoming was the first state to recognize decentralized autonomous organizations as LLCs.
Wyoming LLCs for out-of-state owners
Wyoming is often marketed as the best state to form an LLC, regardless of where you live. That's true for some, but not most, businesses.
When a Wyoming LLC makes sense. Holding companies, real estate investments in Wyoming, businesses operating in Wyoming and owners who value Wyoming's privacy laws and asset protection can benefit.
When it doesn't. If you live and work in another state, you'll usually need to register the Wyoming LLC as a foreign LLC in your home state, paying its fees and taxes too. You'll owe your home state's income tax regardless of where the LLC is formed.
Doing business across Wyoming
Wyoming is the least populous state, with major towns in Cheyenne, the capital; Casper, an energy hub; and Jackson, a wealthy resort area near Yellowstone and Grand Teton national parks. Energy production, especially coal in the Powder River Basin and oil and natural gas, dominates the economy, alongside tourism and agriculture. Wyoming has also positioned itself as a home for digital asset businesses, with special purpose depository institution charters for crypto banks and a state-issued stable token.
Tax planning tips for Wyoming businesses
Keep your registered agent current. Wyoming requires a registered agent with a physical address in the state, and missing annual reports can lead to administrative dissolution.
Calculate the license tax on Wyoming assets only. Larger businesses pay based only on assets located and employed in Wyoming.
Don't assume a Wyoming LLC avoids other states' taxes. If you operate elsewhere, register and pay tax there.
Who pays the most in Wyoming
Mineral producers carry most of Wyoming's tax burden through severance taxes and property taxes on production, and industrial property is assessed at a higher ratio than commercial property. Consumers pay sales tax and, in Jackson and other tourist areas, lodging taxes. Ordinary businesses and individuals pay very little in state taxes, which is why Wyoming consistently ranks first in business tax climate surveys. As coal production declines, state lawmakers have debated how to replace mineral revenue without introducing an income tax.
Wyoming compared with other no-income-tax states
Wyoming is one of nine states without a broad personal income tax, along with Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas and Washington. Unlike Texas, Washington, Nevada and Tennessee, Wyoming has no gross receipts or franchise tax on businesses. Its 4% state sales tax is lower than South Dakota's 4.2% and far below Texas' 6.25%, and its annual fees are among the lowest.
Recent changes for 2025 and 2026
- Property tax relief for residential property passed in 2025.
- Digital asset laws expanded, including the Wyoming stable token.
- No income tax maintained.
Is Wyoming a good state for business?
Advantages
- No corporate, personal, franchise or gross receipts tax
- Low 4% state sales tax
- Low formation and annual fees
- Strong privacy and asset protection laws
Drawbacks
- Small, rural labor market
- Economy dependent on energy prices
- Distance from major markets
- Out-of-state owners usually still pay their home state's taxes
Compliance checklist
- File Articles of Organization or Incorporation with the Secretary of State.
- Appoint a Wyoming registered agent.
- Register with the Department of Revenue for sales tax if you sell taxable goods or services.
- Register with the Department of Workforce Services for unemployment insurance and workers' compensation if you hire.
- File the annual report and pay the license tax by the first day of your anniversary month.
Compare Wyoming with its neighbors below or estimate your taxes in the United States calculator. See LLC taxes for more.