Wyoming, one of the most tax-friendly states, also known as a “tax haven,” is an outstanding place for business owners. Even if you spend less in Wyoming, you can still earn more, thanks to how business-friendly the state is. To ensure your success, you must first understand the rules of sales tax in Wyoming.
This guide breaks down everything you need to know about Wyoming’s sales tax, from determining the right sales tax rates to understanding exemptions and filing processes. By the end of this comprehensive guide, you’ll be equipped to handle Wyoming’s sales tax with confidence and ease.
Sales Tax Nexus in Wyoming
When a business creates either a physical or economic nexus, it is required to collect sales tax in Wyoming.
Physical Nexus
A physical nexus means having a significant physical presence or engaging in enough activities within a state to require the collection and payment of sales tax. The factors that determine a physical nexus in Wyoming include:
- Physical Location: This includes having an office, a place for distribution, sales, or showcasing products, a warehouse or storage facility, or any other place where you conduct business.
- Inventory in the State: This covers situations where you store your products within the state, even if it’s done through a third-party fulfillment center or 3PL (like Amazon FBA) or an online marketplace.
- Employees, independent contractors, agents, or other representatives operating on your behalf.
- Affiliate Nexus: An out-of-state seller without a physical presence in Wyoming may still have a nexus if the seller has an affiliate. This applies to affiliates with a physical presence in Wyoming who act on behalf of the seller.
- Presence at Trade Shows: You must collect sales tax if you exhibit at more than four Wyoming trade shows in 12 months. Once you establish a nexus and obtain a license, sales tax applies to all sales in Wyoming, including those outside trade shows.
To stay informed about the current criteria for establishing a physical sales tax nexus in Wyoming, take a look at the official regulations available right
here!
Economic Nexus
States have established regulations to collect sales tax from out-of-state sellers who meet certain revenue and/or transaction thresholds. This rule is known as economic nexus.
Beginning July 1, 2024, the threshold for economic nexus in Wyoming is $100,000 in gross revenue in the previous or current calendar year’s sales or the prior 12 months.
While the nexus criteria mentioned above generally apply to most businesses, additional methods exist for establishing sales tax nexus. To access a comprehensive list of these rules, please refer to the
governing laws for economic sales tax nexus requirements in Wyoming.
Wyoming Sales Tax on Goods and Services
One of the first things you need to know is whether the goods you’re selling or services you’re offering are taxable in Wyoming.
Tangible Products
Almost all goods are taxable in Wyoming, including:
- Cosmetics
- Electronics
- Clothing
- Furniture
- Jewelry
- Home Goods
- Personal Hygiene – Grooming and other hygiene products such as soap or cleaning solutions are taxable.
The goods that are exempt from sales tax are:
- Groceries – Under Wyoming’s Food and Nutrition Act of 2008, food items with supplemental nutrition assistance benefits are exempt from sales tax. This includes food items purchased for domestic home consumption and groceries purchased with food stamps. However, alcoholic beverages and prepared food are taxable.
- Diapers – for both children and adult diapers
- Feminine Hygiene Products (i.e., pads, tampons, and menstrual cups)
- School annuals and newspapers
- Prescription Medication
- Medical Devices – Exemptions do not apply to non-prescribed durable medical equipment
- Retail sales of trucks, trailers, and semitrailers, including leases of motor vehicles
- Agricultural Supplies: Seeds, fertilizers, and machinery used directly in farming
Services
In Wyoming, most service-based transactions such as professional services and sanitary services (i.e., garbage hauling and latrines) are generally
exempt from sales tax.
However, sellers must separate the exempt charges when a taxable transfer of tangible personal property is involved in a non-taxable service. Otherwise, the whole transaction becomes subject to sales tax.
There are also specific situations where certain services are taxable in Wyoming. For instance, taxable services are:
- Telecommunications services
- Laundry, dry cleaning, or pressing
- Lodging service for transient guests
- Intrastate transportation of passengers
- Repairing, changing, or improving tangible personal property
- Utility services such as gas, electricity, or heat for domestic, industrial, and commercial consumption
Software as a Service (SaaS)/Digital Products
SaaS is not taxable in Wyoming. This only applies if the transaction does not involve obtaining tangible property or itemized service within the product.
Access to
digital products through streaming or subscription services is taxable. This applies if the service does not grant the buyer permanent use and access to the item.
Shipping/Handling
Shipping and handling charges in the state of Wyoming are generally
not taxable. This applies when the shipping or handling fees are listed separately on the invoice.
However, if the fees are included in the total price of a taxable product, the shipping or handling charges become subject to sales tax.
Sales Tax Permits and Licenses in Wyoming
Now that you’ve got a handle on when sales tax nexus applies and which products are taxable in Wyoming, the next important step is getting your Wyoming Seller’s Permit, also known as a sales tax permit.
Seller’s Permit
You can register for a Wyoming sales tax permit online at the Wyoming Internet Filing System for Business (WYIFS) or follow our detailed step-by-step guide for assistance.
Ensure you have specific information on hand when registering for a seller’s permit, including, but not limited to:
- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the State of Wyoming (Nexus Start Date), Month of Fiscal Year End, Estimated Monthly Sales Volume)
- NAICS code
Registration fee
There is a $60 fee to register for a sales tax permit in Wyoming. The state charges a non-refundable registration fee.
Renewal
In Wyoming, you don’t have to renew your sales tax permit as long as the business exists without any changes in ownership or structure.
Resale Certificate
A resale certificate is a document that allows businesses to buy products without paying sales tax on them as long as they plan to resell those items to customers, who will then pay the tax. As a seller, you can also accept resale certificates from others looking to buy for resale.
In Wyoming, sellers use resale certificates to buy goods from their suppliers that they intend to resell. The issuance of the certificates is always done in good faith that the seller would report tax on the final sale of the items.
You can fill out the fill out
Wyoming Sales Tax Exemption Certificate provided by the state of Wyoming after you receive your sales tax permit. You can also fill out the
Streamlined Sales and Use Tax Certificate of Exemption if you would like to get
sales tax exemption for multiple states simultaneously. If you don’t want the hassle of registering, sign up for our all-inclusive service that includes sales tax registration.
Streamlined Sales Tax (SST)
The Streamlined Sales Tax (SST) is an initiative to simplify and standardize sales tax regulations across multiple states. Wyoming is a party to the program, meaning it follows the uniform rules and definitions established by SST.
Check with the Wyoming Excise Tax Division for the most current information on Wyoming’s participation in the Streamlined Sales Tax initiative.
Calculating and Collecting Sales Tax in Wyoming
Sales Tax Computation
In Wyoming, sales tax isn’t just one simple rate; it’s a combination of state and local taxes. To figure out the total sales tax for your calculation, you’ll need to add up the rates for the state, county, and city (if applicable) where your transaction occurs.
Here’s an example. Suppose an out-of-state seller satisfies the economic nexus criteria in Wyoming and sells to a customer in Cheyenne, WY, with a ZIP code of 82001. In that case, the seller has to charge the customer a total sales tax, which can be broken down as follows:
 |
SALES TAX FORMULA |
RATE |
| State: |
Wyoming |
4.00% |
| County: |
Laramie County |
2.00% |
| District: |
First District |
0.00% |
| City: |
Cheyenne |
0.00% |
| Combined Sales Tax Rate = |
6.00% |
|
Origin-based vs. Destination-Based
When making in-state sales, it is important to determine if you are located in an origin-based state or destination-based state to figure out what rate to charge for sales tax.
Wyoming is a destination-based state, meaning sales tax is determined based on the buyer’s location. That means for a Wyoming-based seller, sales tax is generally based on the location of the buyer when selling within the state.
For out-of-state or remote sellers, the sales tax rate is always determined by the buyer’s location. For instance, if you’re selling a product from Texas to a customer in Jackson, Wyoming, where you have a nexus, you’d apply Jackson’s sales tax rate to that sale.
To make life easier, consider using sales tax software or consulting a tax professional, like TaxHero, to ensure accurate tax calculations and collections. Understanding these tax rules helps you stay compliant, whether you’re in-state or out-of-state.
Filing and Remitting Sales Tax Returns in Wyoming
The next step after collection is filing and remitting your Wyoming sales tax returns. Filing and remittance can vary in frequency, typically monthly, quarterly, or annually.
- Monthly Filing: Required if the average monthly liability is greater than $150.
- Quarterly Filing: Needed when the average monthly liability is between $50 and $150.
- Annual Filing: Mandatory if the average monthly liability is less than $50.
It’s crucial to keep accurate records of your sales and tax collections and adhere to the filing schedule set by the state to remain compliant with Wyoming’s sales tax regulations.
Due Dates
In Wyoming, the due date falls on the last day of the following month. For instance, sales tax collected in January is due by February 28th for monthly filers.
However, if this day is a holiday, weekend, or in the rare occurrence of a natural disaster, the deadline is typically extended to the next business day. For instance, if you’re a monthly filer and filing sales tax for the month of April, and the May 31st deadline falls on a holiday or weekend, you’ll have until June 1st, the following business day, to submit.
If you’re a quarterly filer, you’re required to submit your returns on or before January 31, April 30, July 31, and October 31 of each calendar year. Meanwhile, annual filers must submit returns on or before January 31 of each calendar year.
Filing Sales Tax Returns
When filing your sales tax return for Wyoming, a few options are available:
- File online through the Wyoming Internet Filing System for Business (WYIFS).
- File by mail by filling up the Form 41-1 for monthly and quarterly filers or Form 42-1 for annual filers.
- File with TaxHero – Let TaxHero take care of it so you don’t have to worry about missing a payment or return.
Timely Filing Discount
Some states offer a discount to businesses for collecting, filing, and remitting sales tax on time as an incentive to process sales taxes promptly. Wyoming’s timely filing discount amount is determined using specific formulas based on the tax due. On the first $6,250 of your total sales tax, filers can get a 1.95% discount and 1% for any remaining remittance. The maximum allowable discount is $500 for each filing period.
Sales Tax Holiday
Currently, for 2025, there are no planned sales tax holidays in Wyoming.
Wyoming Sales Tax Penalties
Like in most states, sales tax is a big part of how Wyoming generates revenue. Thus, maintaining compliance with sales tax regulations is of the utmost importance. Failure to do so can lead to consequences and sales tax penalties. Therefore, it is crucial to always ensure you are up-to-date in filing, collecting, and remitting sales tax to the state.
Here are the specific
penalties for non-compliance with sales tax regulations in Wyoming:
- Late Filing Penalty: $10 penalty for failing to file a sales tax return by the due date. This penalty is imposed 30 days after receiving the first notice from the state of Wyoming. A $25 penalty is applied when a seller fails to file a return within the 30-day notice.
- Inaccurate Filing Penalty: An incorrect calculation without fraudulent intent leads to a 10% penalty of the missing sales tax with interest. Any fraudulent, inaccurate filing with the intent of tax evasion results in a 25% penalty of the unreported sales tax with added interest.
- Fraudulent Tax Collection: Sellers who falsely collect excessive sales tax and fail to remit the accurate amount to the state of Wyoming are deemed guilty of a misdemeanor. This applies if the total amount they collected is less than $500, resulting in a $750 fine. If the collected amount exceeds $500, the criminal offense is raised to a felony charge with a $5,000 fine.
- General Violations: Any violation of sales tax laws without any specific penalty is automatically guilty of a misdemeanor. Other charges may be applicable depending on the committed offense.
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