Wyoming has one of the lowest state tax burdens in the US, making it an attractive location to hold trust assets or operate a business entity.
Wyoming imposes no state-level income tax of any kind, which can maximize the long-term growth of trust assets. Article 15, § 18 of the Wyoming Constitution makes it unlikely any such tax will be imposed because any imposed income tax must be accompanied by a full credit against such liabilities for all sales, use, and ad valorem taxes paid by a given tax payer to any Wyoming taxing authority.
Wyoming has no state gift or estate tax, no tax on out-of-state retirement income, no tax on mineral ownership, no intangibles tax, and low property tax rates. Wyoming derives a significant portion of its revenue from mineral severance taxes. Although revenues have fallen with the decline of coal, the state has resisted calls to impose new taxes and has a positive economic outlook, particularly in the prosperous community of Teton County.
Wyoming’s insurance premium tax (relevant only to high annual premium private placement life insurance policies) is low at 75 basis points, regardless of the annual premium. W.S. § 26-4-103.