Wyoming reigns as one of America’s most wealth- and tax-friendly states
Discover why owning a piece of Jackson Hole Real Estate could be a smart purchase.
There are plenty of reasons to be thankful for owning a home in Jackson Hole, Wyoming: the mountains, the rivers, two national parks, three ski resorts, art galleries, restaurants, a charming Western-style downtown, and a close-knit, philanthropic-minded and fun-loving community.
As enviable as our lifestyle is here, reality does occasionally intrude, as it does with taxes. But even in that area, as Wyoming residents, we are better off than most. After all, Wyoming has been cited by Bloomberg Wealth Management magazine as the most tax-friendly state in the country.
This is primarily due to the State of Wyoming’s chief savings account, which currently contains nearly $2 billion. Tax savings help us stretch our hard-earned dollars farther, whether to buy real estate, leave property to our heirs or buy a new mountain bike.
Wyoming’s Fiscal Responsibility
While many states are wrestling with how to close widening budget deficits, Wyoming lawmakers are determining where to park the state’s surplus. Wyoming is a leading mineral producing state and gets significant revenue from natural gas, coal and other minerals. This factors into why Wyoming is considered one of the most tax-friendly states.
Recently reported by US News, the current condition of Wyoming’s economic health and prospects for recovery look promising. Here are a few observations:
- Wyoming offers a wide variety of economic opportunities and is in the top half of states in terms of affordability for residents
- Short-term fiscal stability places the state in the top 10
- Population and labor force losses remain minimal
- Retail activity is improving
- Wyoming is well-positioned for economic health entering 2021
10 Reasons to Buy in Wyoming
1. No State Income Tax
Wyoming has no personal or corporate income tax, leaving you more disposable income. City of Jackson taxes are lower than most states. This ensures residents can focus on spending where they would like.
2. Dynasty Trusts
In Wyoming, you can shield your real estate from federal estate taxes for up to 1,000 years through a dynasty trust 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 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.
3. No Inheritance or Estate Tax
Wyoming repealed its estate tax as of January 1, 2005. Since there is no Wyoming estate tax, transferring property to an heir saves even more money. Inheritance taxes in states that have them are different as heirs are responsible for taxes after receiving an inheritance.
4. No State Gift Tax
This real estate tax benefit keeps money in the pockets of Wyoming residents. The Federal gift tax still applies with an exemption of $15,000 annually per recipient, but property owners in Wyoming can gift that real estate to their heirs without paying a state gift tax.
5. No Tax on Out-of-State Retirement Income
Jackson Hole is a popular place to have a second home, and these homeowners often have retirement income that comes from other states where they are a primary resident. Wyoming doesn’t tax that retirement income that’s earned outside of Wyoming. This is one of many reasons that Wyoming is one of the most tax-friendly states for retirees.
6. Low Property Taxes
Wyoming has very low property taxes compared to other states. In Teton County, home to one of a kind Jackson Hole, the rate is 6/10 of a percent of a property’s assessed value. The rate for the city of Jackson is just as low.
7. 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. Since this tax can add up, it offers another benefit for those living in this tax-friendly state.
8. No Tax on Mineral Ownership
Wyoming does not tax mineral ownership. Oil, gas, and coal companies are charged based on the minerals they remove from the ground.
9. No Intangible Taxes
Wyoming doesn’t make you pay taxes on financial assets like stocks and bonds. The state also has no tax on bank accounts and doesn’t tax retirement income earned or received from other states.
10. No Tax on the Sale of Real Estate
Wyoming does not tax the sale of real estate. This tax-free real estate state offers many benefits for those who choose to live and own property here.
All of these benefits combine to make Wyoming a state that offers significant tax advantages for residents and real estate owners. If you’re considering a move into Wyoming, Tom Evans Jackson Hole Real Estate is here to assist you.