Wyoming does not have a state capital gains tax

Wyoming is one of nine states with no capital gains tax at the state level. When you sell an investment—a stock, rental property, business, or other asset—at a profit, you do not owe Wyoming state tax on that gain. This applies whether you are a Wyoming resident or a nonresident who owns Wyoming property.

The federal government still taxes capital gains through the Internal Revenue Service (IRS). Wyoming's lack of a state tax simply means you skip the additional layer that residents of other states pay. Your federal rate depends on how long you held the asset and your total income for the year.

Wyoming also has no state income tax, no corporate income tax, and no inheritance tax. This combination makes the state attractive to investors and business owners, but it does not change how federal capital gains work or what you owe to the IRS.

Key Takeaways

  • Wyoming imposes no state capital gains tax, so you owe tax only to the federal government when you sell an investment at a profit.
  • Federal capital gains tax rates are 0%, 15%, or 20%, depending on your income and how long you held the asset.
  • Long-term capital gains (assets held over one year) receive lower federal tax rates than short-term gains (assets held one year or less).
  • Wyoming residents who work or invest in other states may still owe capital gains tax to those states on gains from assets located there.

How federal capital gains tax works for Wyoming residents

The IRS taxes capital gains in two categories: long-term (assets held more than one year) and short-term (assets held one year or less). Long-term gains receive preferential rates: 0%, 15%, or 20% depending on your taxable income. Short-term gains are taxed as ordinary income at your regular federal tax bracket, which can be as high as 37%.

Your taxable income for the year determines which long-term rate applies. For 2024, the 0% rate applies to single filers with taxable income up to $47,025 and married filers filing jointly up to $94,050. The 15% rate applies to income above those thresholds up to $518,900 (single) or $583,750 (married filing jointly). Income above those amounts is taxed at 20%.

You report capital gains on your federal tax return using Form 1040 and Schedule D. If you sold multiple assets during the year, you list each sale separately. The IRS uses your cost basis (what you paid for the asset) and your sale price to calculate the gain.

Capital gains from Wyoming property owned by nonresidents

If you live outside Wyoming but own property there—land, a rental house, or a business—and you sell it at a profit, Wyoming does not tax that gain. You owe federal tax only. This is different from some states, which tax gains on property located within their borders regardless of where the owner lives.

However, if you own property in another state and sell it, that state may tax the gain. For example, California taxes capital gains on real estate located in California even if the owner is a Wyoming resident. You need to check the rules of the state where the property is located, not where you live.

When you might owe capital gains tax to another state

Wyoming residents who work or invest in other states may owe state capital gains tax to those states. For example, if you are a Wyoming resident but you own stock in a company headquartered in California, or you sold a rental property in Colorado, those states may claim tax on the gain.

The rule varies by state. Some states tax gains on property located within their borders. Others tax gains on assets owned by residents, regardless of location. A few states tax gains on assets connected to income earned in that state. You should research the rules of any state where you own significant investments or where you earned income.

If you owe tax to multiple states, you may be able to claim a credit on your Wyoming return for taxes paid to other states—though Wyoming's lack of income tax means you cannot file a Wyoming return to claim that credit. Instead, you would claim the credit on your federal return or on the return of the state where you now live.

Reporting capital gains on your federal return

You report each sale on Schedule D (Form 1040), which is part of your federal tax return. For each asset sold, you list the date acquired, date sold, cost basis, sale price, and gain or loss. The IRS uses this information to calculate your total capital gains for the year.

If you sold only one or two assets and the total gain is small, the process is straightforward. If you bought and sold many assets—especially through a brokerage account—your broker will send you a Form 1099-B listing all transactions. You can use that form to fill out Schedule D, though you may need to adjust figures if your cost basis differs from what the broker reported.

Long-term and short-term gains are calculated separately. Your tax software or a tax professional can help you determine which category each sale falls into and calculate the correct tax.

Special situations: Primary residence and other exclusions

The federal government excludes gains on your primary residence from capital gains tax, up to a limit. If you are single, you can exclude up to $250,000 of gain. If you are married filing jointly, you can exclude up to $500,000. You must have owned and lived in the home for at least two of the last five years before the sale.

This exclusion is federal, not state-specific, so it applies whether you live in Wyoming or anywhere else. Wyoming does not add its own exclusion or restriction on top of this.

Other assets may also receive special treatment. For example, gains on certain small business stock or may have access to opportunity zone investments may be partially or fully excluded from federal tax under specific conditions. These rules are complex and depend on the type of asset and how long you held it. A tax professional can tell you whether any of these apply to your situation.

Frequently Asked Questions

Do I have to pay Wyoming state tax on capital gains if I live there?

No. Wyoming has no state capital gains tax. You owe federal tax to the IRS, but nothing to Wyoming. This is true whether you are a resident or a nonresident who owns Wyoming property.

What if I sold an investment and made a loss instead of a gain?

Capital losses can offset capital gains on your federal return. If your losses exceed your gains, you can deduct up to $3,000 of the net loss against other income in that year. Any remaining loss carries forward to future years. Wyoming does not tax losses or gains, so this is purely a federal matter.

Do I owe Wyoming tax if I inherited an investment and sold it later?

Wyoming has no inheritance tax or estate tax. When you inherit an asset, your cost basis is "stepped up" to its fair market value on the date of death. If you sell it shortly after, you typically owe little or no federal capital gains tax. Wyoming does not add any additional tax on inherited assets.

If I move to Wyoming from another state, do I owe capital gains tax to my old state on sales after I move?

No, as long as you have truly moved. Once you establish Wyoming residency, you no longer owe income or capital gains tax to your former state on new gains. However, some states have rules about when residency changes take effect. If you moved mid-year, your former state may claim you were a resident for part of the year and tax gains from that period. Check your former state's rules or consult a tax professional.

Does Wyoming tax cryptocurrency gains?

Wyoming does not tax capital gains on any asset, including cryptocurrency. When you sell crypto at a profit, you owe federal tax only. The IRS treats cryptocurrency as property, so gains are taxed as capital gains at the federal level. Wyoming adds no state tax on top of that.