Tax Benefits in the State of Wyoming

March 30, 2016

There are plenty of reasons to want to own a home in Wyoming: the mountains, the big rivers, camping, hunting, fishing, hiking, mountain biking, our national parks and substantial public lands, the grand vistas, abundant wildlife, friendly fun-loving communities, and the list goes on...

The relaxed lifestyle we live here is annually, sometimes more so, touched by the reality of TAXES. Wyoming has been cited by Bloomberg Wealth Management as “the most friendly tax state in the country”. We have more disposable income to enjoy our touched lifestyles because we have chosen to live in Wyoming.

TAX BENEFITS OF HOME OWNERSHIP IN JACKSON HOLE WYOMING:

Here are the 10 top tax benefits offered by Brian Jones, a senior vice president at Bank of Jackson Hole:

No state income tax

With no state tax on personal or corporate income, you have more disposable income.

Low property taxes

Wyoming has very low property taxes compared to other states. The taxes that you do pay here are based on the assessed value of the property. For Teton County, 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.

No inheritance tax or estate tax

Wyoming repealed its estate tax as of January 1, 2005. Additionally, there is no inheritance tax.

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.

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. 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.

No tax on out-of-state retirement income

A lot of people in Jackson Hole use Wyoming as a second home. 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.

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.

No tax on mineral ownership

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

No intangible taxes

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

No tax on the sale of real estate!

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

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.

No inheritance tax or estate tax :: “Wyoming repealed its estate tax as of January 1, 2005,” Jones says.

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.

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.”

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

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.

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.

No intangible taxes :: Wyoming doesn’t make you pay a tax on financial assets like stocks and bonds.
No tax on the sale of real estate.

If you would like any other information at this time or if you would like to speak with a local tax professional, we can easily arrange that for you!

(provided by First Interstate Bank of Jackson Hole)

RETIREMENT IN JACKSON HOLE:

According to CNN in 2015, Wyoming is THE BEST STATE TO RETIRE IN:

"Wyoming is the best state to retire in, according to a list from Bankrate.

The group ranked all 50 states based on weather, cost of living, crime, quality of health care, state and local taxes, and general well-being.

Wyoming is at the top largely because it has the lowest tax rate in the country. At 6.9% it's only about half of New York's effective tax rate.

It's also safe. Wyoming has the fifth lowest crime rate in the country. And a safe place to live is the most important factor for retirees, according to Bankrate analyst Chris Kahn. Cost of living comes next, by a slim margin."

Source: http://money.cnn.com/gallery/retirement/2015/03/23/best-states-retirement/