Considering calling Jackson Hole home? The benefits of residency in Jackson Hole are numerous, not the least of which being Wyoming’s consistent ranking as the most tax-friendly state in the country. The state’s dismissal of corporate and individual income tax, lack of estate tax and low sales tax secured its top rank in The Tax Foundation’s State Business Tax Climate Index.
Combine the economic and tax benefits of Wyoming residency, the world-famous skiing of the Jackson Hole Mountain Resort, convenient air service with direct flights from thirteen cities across the country, a vibrant cultural scene, and proximity to Grand Teton and Yellowstone National Parks… isn’t it time you create your own legacy in Jackson Hole?
There are numerous reasons why those who live in Jackson Hole have chosen to have their primary residences here. Some of those reasons are emotional, such as the sheer beauty of the natural surroundings and the overall quality of life. Other reasons are more practical in scope and include Wyoming’s overall tax-climate compared to all other states.
Here are the Top 10 Tax Benefits if you call Wyoming home –
1). No state income tax. With no state tax on personal or corporate income, you have some disposable income.
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. You can establish a trust in Wyoming for the benefit of your family or other beneficiaries, and you can transfer your real estate into a limited liability company or family partnership and then put that into the “dynasty trust”. 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.
3). No inheritance tax or estate tax. Wyoming repealed its estate tax as of January 1, 2005.
4). No state gift tax. Somebody who owns property in Wyoming can ‘gift’ that real estate to their heirs without having to worry about paying a state gift tax.
5). No tax on out-of-state retirement income. Wyoming doesn’t tax retirement income that’s earned outside of Wyoming, such as pensions, dividends, and IRA income.
6). Low property taxes. Dollar for dollar, Wyoming has very low property taxes compared to other states. Some people see property taxes in Teton County, Wyoming as high, but it is important to remember properties in Wyoming are only assessed at their value, which is determined by the market.
7). No excise taxes. When you fill up your car or buy groceries in Wyoming, you won’t pay any state tax either.
8). No tax on mineral ownership. A lot of states charge owners a tax on their mineral ownership, but Wyoming does not. If you own minerals, you won’t pay a tax on it like you would your home. This is helpful for large ranch buyers or properties not within a platted subdivision.
9). No intangible taxes. Wyoming doesn’t make you pay a tax on financial assets like stocks and bonds.
10). And, last but not least, my personal favorite – no tax on the sale of real estate.
If you are considering a move to Jackson Hole, or anywhere in Wyoming, it is important to consult with a financial adviser and tax accountant specialist.