Does Wyoming charge sales tax on services?
by May 16, 2024
The majority of U.S. states require merchants to charge sales tax on tangible personal property (TPP), otherwise known as physical goods. Many states also implement sales and use tax on digital goods and SaaS. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by taxing services.
Here’s what merchants need to know about taxing services in the state of Wyoming, which has a state sales tax rate of 4%.
Does Wyoming charge sales tax on services?
Services in Wyoming are generally not taxable, with a few exceptions. The following are taxable services in Wyoming:
- Intrastate telecommunication services
- Public utilities, including gas, electricity, and furnishing gas
- Services performed for the repair, alteration or improvement of tangible personal property
- Intrastate transportation of passengers
- Accommodations in hotels, motels, tourist courts and similar establishments providing lodging service for transient guests
- Admission to any place of amusement, entertainment, recreation, games or athletic event
Examples of tax-exempt services in Wyoming include:
- Labor or service to real property
- Labor or service to humans or animals
- Professional services (accountants, tax preparers, engineers, doctors, attorneys, lawyers, consultants, teachers, trainers, instructors, inspectors, custom software developers, etc)
Please keep in mind that this is a guideline, and you should consult with a sales tax professional to determine if the services your business provides should be subject to state sales tax. For an in-depth look at Wyoming sales tax, TaxJar’s guide to sales tax in Wyoming and the Wyoming Department of Revenue has more details.
How to stay compliant with sales tax when you sell services
Managing all the moving parts of sales tax can be challenging. Are accounting services taxed? What about hair care or car maintenance? They may not be taxed in your state today, but sales tax laws change all the time. TaxJar makes it easier for you to stay current with it all, especially as you scale your business across states.
If you need to charge sales tax on services, TaxJar takes all of these state laws into account and makes your job simple. To learn more about TaxJar and get started automating your sales tax compliance, start a free, 30-day trial today.
