Wyoming has a 4% statewide sales tax that applies to most transactions involving tangible personal property. Certain cities and counties also impose local option sales taxes that can raise the rate even higher in those jurisdictions.
In addition, Wyoming levies selective sales taxes on things like lodging, alcohol, and tobacco. The sales tax system in Wyoming can be complex for businesses to navigate. This comprehensive guide provides all the key information you need to understand Wyoming sales tax rules, rates, exemptions, and how to file.
Calculating Sales Tax in Wyoming
There are two main components that go into calculating Wyoming sales tax:
State Sales Tax Rate
- The Wyoming state sales tax rate is 4% of the purchase price. This applies to most retail sales of goods across the state.
Local Sales Tax Rates
- In addition to the 4% state tax, many cities and counties impose local option sales taxes. Local rates can be as high as 3%, bringing the total tax rate to 7% in some areas.
- Currently there are 21 cities and 10 counties with a local sales tax in Wyoming. Popular tourist spots like Jackson and Teton Village have some of the highest rates.
To find the total sales tax rate for a location, you need to add the 4% state tax plus any applicable local taxes. For example:
- Cheyenne (Laramie County): 4% state tax + 2% county tax = 6% total sales tax
- Jackson (Teton County): 4% state tax + 2% county tax + 1% city tax = 7% total sales tax
Use a Wyoming sales tax calculator to look up the rate by address.
Wyoming Sales Tax Calculator
Wyoming Sales Tax Calculator
Calculating Tax on a Sale
To calculate the sales tax on an order, you multiply the total sales price by the tax rate decimal:
Total Sales Tax = Sales Price x Tax Rate
For example, if a customer purchases a $500 appliance in Cheyenne (6% rate), the sales tax would be:
$500 x 0.06 = $30
So the total amount collected from the customer is $500 + $30 = $530
Wyoming Sales Tax Exemptions
Wyoming provides sales tax exemptions to help reduce the tax burden on certain organizations and transactions. Major exemptions include:
Food and Groceries
Sales of food and food ingredients for off-premises consumption are exempt from sales tax in Wyoming. This includes most foods purchased at a grocery store.
Restaurants must collect tax on prepared food and drinks.
Prescription Drugs
Prescription drugs and over-the-counter medications are exempt when purchased with a written prescription.
Clothing and Personal Items
Sales of most clothing and personal care items are exempt from sales tax in Wyoming. This includes things like:
- Adult and children’s clothing
- Diapers
- Feminine hygiene products
Manufacturing Equipment
Purchases of equipment and machinery used directly in manufacturing are exempt from Wyoming sales tax. Raw materials for manufacture are also exempt.
Agriculture and Farming
Equipment, machinery, and services for agriculture and farming are exempt from sales tax in Wyoming. Things like tractors, combines, irrigation equipment, and veterinary services for livestock qualify.
Nonprofits
Qualifying nonprofit organizations can get an exemption certificate to purchase goods and services tax-free. This applies to groups like churches, schools, hospitals, and youth programs.
Businesses and individuals cannot claim exemption merely because the goods purchased will be donated to a nonprofit. Only organizations that obtain a valid exemption certificate directly from the state can make tax-exempt purchases in Wyoming.
Government Agencies
The state government, federal government, Wyoming public schools, and Wyoming community colleges all have blanket exemption from paying sales tax on purchases. Local governments like cities and counties may also qualify for exemptions on the purchase of goods and services for public use.
Out-of-State Sales Tax
In some cases, purchases made from out-of-state sellers are also subject to Wyoming sales tax:
Internet/Mail Order Retailers
Wyoming residents are required to pay sales tax on purchases made online or through mail order catalogs from out-of-state retailers IF the retailer has an economic presence or nexus in the state.
Retailers with over $100,000 in annual sales or 200 or more transactions in Wyoming must collect Wyoming sales tax. This threshold includes both online/mail order and in-state retail sales.
Use tax may be owed by the customer directly if the retailer did not collect the tax.
Vehicles Purchased from Other States
When buying a vehicle from an out-of-state seller, Wyoming requires the taxes to be paid in order to register the vehicle. Generally the sales taxes paid to the other state can be credited against this amount.
Inventory Purchased for Resale
Retailers and wholesalers purchasing inventory for resale must provide a valid resale certificate to the seller to make the purchase exempt. If no certificate is provided, they may be charged sales tax at the time of purchase and have to file for a refund.
How to Collect and Remit Wyoming Sales Tax
Sales Tax Permits
Every Wyoming business that sells taxable goods or services needs a sales tax permit. You can apply online through the Wyoming Department of Revenue for free.
Some key requirements:
- Permits are location specific. Each storefront or retail location needs its own permit.
- You must display the permit publicly in your place of business.
- The permit is not transferable. New owners must apply for their own permit. Permits cannot be sold or transferred to other businesses.
Filing Tax Returns
Retailers must file Wyoming sales tax returns on a monthly, quarterly, or annual basis depending on revenue levels:
- Monthly – For businesses with over $50,000 in annual state sales tax liability.
- Quarterly – For businesses with $50,000 or less in annual sales tax liability.
- Annually – For small businesses that expect less than $1,000 in annual tax liability.
Returns are due the last day of month following the reporting period. So monthly returns must be filed by the last day of the next month, quarterly returns by the last day of the month after the end of the quarter, etc.
Returns and payments can be filed online through My DOR. There are no fees for filing online, but penalties apply for late payments.
Keeping Sales Tax Records
Retailers are required to keep detailed records and receipts to document sales taxes collected and owed. These records must be kept for at least 3 years. Suitable records include:
- Sales tax collection receipts
- Invoices and bills of sale
- Books or ledgers documenting transactions
- Machine printed records like cash register tapes
Wyoming Sales Tax Administration
Sales tax in Wyoming is administered by the Excise Tax Division of the Department of Revenue. Their key responsibilities include:
- Issuing sales tax permits
- Providing information on Wyoming tax rules
- Collecting and processing sales tax revenue
- Auditing businesses for compliance
Some key sales tax administration contacts:
- Website: revenue.wyo.gov
- Email: [email protected]
- Phone: (307) 777-5200
- Mailing Address:
Department of Revenue
Herschler Building
122 West 25th Street
Cheyenne, WY 82002-0110
Businesses can consult the resources on the Department of Revenue website or contact them directly for help with Wyoming sales tax questions or problems.
Wyoming Sales Tax Updates for 2023
Wyoming has made a few recent changes to sales tax laws that take effect in 2023:
- The exemption for manufacturing equipment has been expanded to include more computer equipment and software used in manufacturing.
- Additional exemptions were added for equipment used in scrap metal processing and recycling.
- The threshold for requiring out-of-state retailers to collect tax was lowered from $300,000 to $100,000 in Wyoming sales.
- Starting July 1, 2023, marketplace facilitators like Amazon, eBay, and Etsy will be required to collect and remit sales tax on behalf of third-party sellers.
- Numerous county sales tax rate changes take effect in 2023. Check here for an updated list of all county and city rates.
Businesses should consult the Wyoming Department of Revenue website for details on upcoming sales tax changes and how to comply.
Conclusion
This guide covers everything Wyoming business owners need to know about properly charging, collecting, reporting, and remitting Wyoming sales tax.
The key takeaways include:
- Wyoming has a 4% statewide sales tax plus local rates that can reach 7% in some areas. Always check rates by address.
- Exemptions are provided for things like food, medical purchases, and manufacturing equipment. But clothing and most general retail items are taxable.
- Sales tax permits, monthly/quarterly reporting, and detailed record keeping are required for all retailers.
- Out-of-state sellers with significant Wyoming sales now have nexus and must collect tax.
- Numerous sales tax changes take effect in 2023 that businesses should prepare for.
Understanding the ins and outs of Wyoming sales tax laws allows businesses to remain fully compliant, avoid audits and penalties, and properly collect the revenues needed to fund state and local government services. Be sure to consult the resources available from the Wyoming Department of Revenue as laws and rates evolve.
Frequently Asked Questions (FAQ)
1. What is the sales tax rate in Wyoming?
The statewide sales tax rate in Wyoming is 4%. Many cities and counties also impose local option taxes up to 3%, so total rates can reach up to 7% depending on the location.
2. What transactions are subject to sales tax in Wyoming?
Wyoming sales tax applies to the retail purchase of most tangible goods and some services. Common taxable items include clothing, appliances, furniture, electronics, home goods, jewelry, and prepared restaurant meals.
3. Does Wyoming tax groceries?
No, most groceries purchased for home consumption are exempt from sales tax in Wyoming. However, prepared foods like those sold at a restaurant are taxable.
4. Does Wyoming have a use tax?
Yes, Wyoming imposes a companion use tax when sales tax is due but not collected at the time of purchase. This commonly applies to out-of-state online purchases. The use tax rate matches the sales tax rate.
5. Who must collect Wyoming sales tax?
Any business selling taxable goods or services in Wyoming must register for a permit and collect sales tax. This includes online and out-of-state retailers with nexus in the state.
6. How often do you need to file sales tax returns in Wyoming?
Return filing frequencies are monthly, quarterly, or annually based on the business’s total sales tax liability. Larger businesses must file monthly while smaller ones can file less often.
7. Can nonprofits get exemptions from sales tax in Wyoming?
Yes, nonprofit organizations can apply for a Wyoming tax exemption certificate to purchase goods and services tax-free. The exemption only applies to the nonprofit entity itself, not to individuals.
8. Are vehicles sales subject to tax in Wyoming?
Yes, retail sales of vehicles are subject to Wyoming sales tax. Tax also applies when registering a vehicle purchased from another state or private seller.
9. Where can I find more information on Wyoming sales tax laws and requirements?
The Wyoming Department of Revenue website (revenue.wyo.gov) provides comprehensive guidance on sales tax registration, filing, rates, exemptions, and more. You can also contact them by phone or email with questions.
