Wyoming does not impose an individual income tax, but there are several taxes that can affect your paycheck. These include contributions to employer-sponsored health and life insurance plans and money contributed to medical expense accounts like flexible spending accounts and health savings accounts. These deductions are taken out of your paycheck biweekly or monthly, depending on how often you get paid.
Sales taxes are another important revenue source for Wyoming. They are levied on the retail sale or lease of tangible personal property, admissions fees, and some services to customers located in the state. Cigarette taxes are also imposed, and vendors must purchase and affix stamps to cigarette packages to show that they have paid the tax.
When closing a business, it is important to ensure that all tax obligations are met. This includes completing all necessary paperwork and notifying the appropriate agencies. In addition, it is a good idea to consult with a financial expert to help you close your business correctly and efficiently. Moreover, it is crucial to maintain records for a specified period of time.
Other Wyoming Taxes
Wyoming is one of nine states that does not impose a state income tax. However, it does have a fairly high combined state and local sales tax rate of 5.36%. In addition, it does not tax Social Security retirement benefits or estate or inheritance taxes. However, those living in the state should be aware that seven different tax brackets will still affect their federal taxes.
In addition to a state sales tax of 4%, Wyoming’s department of revenue administers 49 sales and use tax exemptions. Some items, such as candy, are exempt from sales taxes because they are considered food. However, other items, such as PEZ dispenser refills, are subject to the sales tax if they are sold from vending machines. Counties may also add an optional general purpose, specific purpose, or economic development tax with voter approval.
Although Wyoming is considered a business-friendly state, you should consider consulting an attorney to ensure your entity meets all its filing and tax requirements. For example, if you form your entity as a partnership, you must file federal and state tax returns, but you can elect to be taxed as a corporation.
In addition, Wyoming has some of the lowest property tax rates in the country. These tax advantages make the Cowboy State an attractive place to buy real estate and open a business. The state also offers several financial incentives for small businesses, including renewable energy projects and conservation easements.