Tax Day Silver Lining

We are firm believers in silver linings, even on Tax Day. And in Wyoming, the silver lining is state shaped considering the nearly non-existent levying of state taxes. So if today finds you tearing your hair out, consider becoming a cowboy.

“Unlike most states, Wyoming does not impose any sort of tax on the incomes of individuals, companies, or trusts,” says attorney Christopher M. Reimer of Long Reimer Winegar Beppler LLP, the firm TCCG turns to for sound counsel. “Therefore, if a person can change residency from a state that does impose a tax to Wyoming, they can completely avoid state level tax. This is important because the highest state income tax rates exceed 10%.”

CNBC underscored this point in an August 2013 article titled, Move Here! The Most Untaxing States for Retirees. While many retirees consider climate, culture and cost of living as crucial criteria, taxes should top their lists. “If Yellowstone National Park or the snow-capped peaks of the Grand Tetons are your idea of a great backyard, the Cowboy State could be an ideal spot to spend your retirement,” Shelly Gigante writes on CNBC.com. “That taxes are senior-friendly is an added bonus. Wyoming has no state income tax, no estate or inheritance tax, and sales taxes are minimal. Retirement income, including Social Security benefits, is also tax-free.”

And Wyoming is growing ever-more tax friendly. “The most recent changes to Wyoming law that impact taxes have to do with trusts and trustees,” Christopher Reimer says. “For example, even if a person is not able to become a Wyoming resident, they may be able to use Wyoming law to establish a trust that could own property that would not be subject to state income tax.”

Everyone agrees: Wyoming welcomes all with open tax arms. Even businesses, as recognized by the Tax Foundation, an independent tax policy research organization. In October, the Tax Foundation released its 2015 State Business Tax Climate Index. Wyoming ranked No. 1. So why wait? Start plotting your move today, on Tax Day.

 


What makes Wyoming so attractive, tax-wise:

  • No personal income tax.
  • No tax on corporate income.
  • No inheritance tax.
  • No estate tax.
  • No tax on out-of-state retirement income.
  • No gift tax, so real estate can be gifted to heirs without paying a gift tax.
  • No intangible tax on financial assets like stocks and bonds.
  • No excise sales tax.
  • No tax on mineral ownership.
  • No real estate transfer tax.
  • No tax on Social Security, private pension, and individual wage income.
  • Low property taxes.
  • Dynasty Trusts shield real estate from federal estate taxes for up to 1,000 years.