Most people have heard the oft-repeated presumption that Wyoming is one of, if not the, best of the 50 states when it comes to tax advantages. But do you know why Bloomberg Wealth Manager Magazine has designated Wyoming as the most tax-friendly state in the United States?
Perhaps most importantly, there is a determination within the state’s political system to protect Wyoming’s reputation as having the country’s most business-friendly tax system. The state legislature can prioritize this thanks to a budget surplus that often approaches $1 billion a year.
Bank of Jackson Hole has prepared a concise explanation of the specific tax advantages available to residents of Wyoming. Contact me for a complete copy, but some of the highlights include:
- No individual or business income tax.
- No inheritance tax.
- Asset protection laws designed to conserve individual and family assets from not only creditors but a Federal tax system that can deplete family wealth from one generation to the next.
- The establishment of trusts that can continue for up to 1,000 years. These effectively do away with the rule against perpetuities.
- Some of the lowest property taxes in the region.
- No state tax on retirement income earned and received from another state, no state gift taxes, no state capital gains tax, no excise tax.
That is tough to compete with and definitely resonates with many of our clients looking to relocate from the coastal regions, and many other states. But the best part is these tax advantages are available in one of the most beautiful places on Earth, and that is a truly winning combination.