WYOMING
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NICKNAME
The Equality State
BOTTOM LINE: TAX-FRIENDLY
Wyoming is a tax haven for cowboys and retirees alike. There is no state income tax. The state sales tax is low. For most property, only 9.5% of market value is subject to tax. Thanks to abundant revenues that the state collects from oil and mineral rights, Wyoming residents shoulder one of the lowest tax burdens in the U.S., according to the Tax Foundation.
STATE SALES TAX
4% (prescriptions and food for home consumption are exempt). Counties can add up to 2% in additional taxes.
INCOME-TAX RANGE
No state income tax.
SOCIAL SECURITY
Social Security benefits are not taxed.
EXEMPTIONS FOR OTHER RETIREMENT INCOME
Retirement income is not taxed.
PROPERTY TAXES
Tax rates are set by counties, school districts, cities and towns, and special taxing districts, such as water and sewer districts and cemetery districts. For most property, only 9.5% of market value is subject to tax. Consequently, a home worth $100,000 on the market is taxed on only $9,500 in assessed value. Citizens are legally protected from counties and municipalities increasing property-tax rates. For county revenue, the property-tax rate cannot exceed $1.20 per $100 of assessed value. For cities and towns, the rate is limited to 80 cents per $100.
The state has several property-tax relief programs. If the value of your assets exceeds $106,485 per adult member of the household, you cannot qualify for the main property-tax refund program. Some assets, such as retirement accounts, don’t count toward the total. To be eligible for the program, your household income must also be less than the greater of two-thirds the state or county median household income. For those who meet the eligibility rules, the tax relief is up to half of the median residential property tax or half of the property-tax bill, whichever is less. The residency requirement is five years (physically occupying the home for at least six months per year) immediately preceding the tax year in which you apply for the refund.
Tax breaks for seniors: The state has a Tax Rebate to Elderly and Disabled program that is available to those 65 and older who meet certain income requirements. They can receive a refund from the Wyoming Department of Health on property tax, utilities, and sales/use tax for up to $700 (single) and $800 (married).
INHERITANCE AND ESTATE TAXES
There is no inheritance tax and no estate tax.
Visit RetirementLiving.com for a complete rundown of taxes in Wyoming.
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