Wyoming capital gains tax on real estate is zero: the state has no personal income tax and charges no transfer tax on a sale. A 1031 exchange in Wyoming therefore defers only federal tax, which on a $300,000 rental gain can run to $76,400, and the costs that remain are the ones a Wyoming owner already knows: property tax on whatever you buy next.
Reviewed by Jon Hilley, CEO & Founder of 1031 Specialists. Last reviewed September 29, 2026.
| State tax on real estate gains | None. Wyoming has no personal income tax |
|---|---|
| Long-term capital gains treatment | Not taxed by the state |
| Nonresident withholding at closing | None |
| Withholding form | Not applicable |
| Transfer or conveyance tax (a 1031 does not defer it) | None. Only county recording fees |
| Clawback on out-of-state replacement property | None |
| Conforms to Section 1031 | Not applicable (no income tax) |
| Property tax note | Residential and commercial property assessed at 9.5% of market value; industrial at 11.5% |
Table of contents
- Is there capital gains tax on real estate in Wyoming?
- Wyoming tax on a $300,000 gain: worked example
- Is there nonresident withholding in Wyoming?
- Wyoming transfer taxes: none
- Conformity and clawback in Wyoming
- Property tax on Wyoming replacement property
- Moving into or out of Wyoming
- Where Wyoming 1031 exchanges happen
- Federal 1031 rules that apply in Wyoming
- Common Wyoming 1031 exchange mistakes
- Start your Wyoming 1031 exchange
- Frequently asked questions
- Sources
Is there capital gains tax on real estate in Wyoming?
No. Wyoming does not tax individual income, so there is no state tax on the gain from selling land, a rental house, an apartment building or a commercial property, and no state tax on depreciation recapture. There are no city or county income taxes either.
What remains is federal: 0%, 15% or 20% on the long-term gain (20% above $613,700 of taxable income for joint filers in 2026, $545,500 single), up to 25% on unrecaptured §1250 gain from depreciation, and the 3.8% net investment income tax above $250,000 of joint MAGI ($200,000 single). A full 1031 exchange defers all three. Our capital gains vs. 1031 exchange comparison shows what paying the tax costs over time.
Wyoming tax on a $300,000 gain: worked example
Assumptions: a $300,000 long-term gain on a Wyoming investment property, $100,000 of it unrecaptured §1250 depreciation, a married couple filing jointly in the top federal bracket.
| Line | Math | Tax |
|---|---|---|
| Unrecaptured §1250 gain (federal) | 25% x $100,000 | $25,000 |
| Long-term capital gain (federal) | 20% x $200,000 | $40,000 |
| Net investment income tax | 3.8% x $300,000 | $11,400 |
| Federal subtotal | $76,400 | |
| Wyoming income tax | No state income tax | $0 |
| Total deferred by a full 1031 exchange | $76,400 |
The entire benefit is federal. Change the depreciation figure to match your own records in the depreciation recapture calculator.
Is there nonresident withholding in Wyoming?
No. Without an income tax, Wyoming has nothing to withhold when a nonresident sells, so the full net proceeds can go to your qualified intermediary. Your home state may still tax the gain. A Colorado resident selling a Cheyenne rental owes Colorado tax on it unless the sale is exchanged. Foreign sellers remain subject to federal FIRPTA withholding; see our guide for foreign sellers of U.S. property.
Wyoming transfer taxes: none
Wyoming has no state or local real estate transfer tax, deed tax or documentary stamp tax. Sellers pay title insurance, escrow or closing fees and county recording fees. Because there is no transfer tax, there is also nothing on the closing statement that a 1031 fails to defer, which is not true in states like Washington or Colorado resort towns. It also keeps the cost of the replacement purchase low if you buy in Wyoming.
Conformity and clawback in Wyoming
With no income tax, Wyoming has no conformity question and no clawback. Wyoming will not track or tax the deferred gain if you exchange into property in another state.
The clawback issue for Wyoming residents runs the other way. Many people move to Wyoming after exchanging property elsewhere. If the property you gave up was in California, Oregon or Montana, that state keeps its claim on the gain deferred there and can tax it when you sell the Wyoming replacement, even though you live in a state with no income tax.
Property tax on Wyoming replacement property
Property tax is the main state and local tax a Wyoming investor pays, so it belongs in the underwriting of any replacement property. County assessors value property annually. Residential and commercial property is assessed at 9.5% of market value and industrial property at 11.5%, and the local mill levy is applied to that taxable value.
Wyoming's newer homeowner exemption removes 25% of the taxable value of an owner-occupied single-family home, on up to $1 million of market value. It requires the owner to live in the home as a primary residence (at least eight months of the year for tax year 2027), so rental and investment property does not qualify. Do not use a neighbor's owner-occupied tax bill to estimate what a rental will pay. The state's property tax refund program is also limited to owner-occupied homes.
Moving into or out of Wyoming
Moving to Wyoming. Owners from Colorado, California and Oregon often exchange into Wyoming property and relocate. Wyoming will not tax later gains, but a clawback state can still tax the gain deferred from property you sold there, and Colorado taxes a nonresident's Colorado-source gain if you sell Colorado property after moving.
Exchanging out of Wyoming. Buying replacement property in a state with an income tax means you will file a nonresident return there for the rent, and that state will tax the gain on a future taxable sale. Staying in a no-income-tax state, such as South Dakota, avoids that.
Converting a replacement into a home. Some owners exchange into a Jackson or Sheridan property, rent it, and later move in. Federal rules require holding exchange property for five years before the home sale exclusion can apply, and the property must genuinely be held for investment first.
Where Wyoming 1031 exchanges happen
Jackson and Teton County lead in dollar volume, with high-value residential, ranch and short-term rental exchanges; Teton County also has the state's property tax deferral program for qualifying long-time homeowners. Cheyenne and Laramie see single-family and multifamily trades tied to the Front Range, Casper and Gillette track the energy economy, and Sheridan draws buyers of ranch and recreational land. We do not yet have Wyoming city guides; see the DST guide if you want passive replacement property instead.
Federal 1031 rules that apply in Wyoming
Identify replacement property in writing within 45 days of the sale and close within 180 days, or by your return due date if earlier. A qualified intermediary holds the money from sale to purchase. Reinvest all proceeds and replace any debt paid off to defer the full gain. See our 1031 exchange guides, the 45-day identification validator and the boot calculator.
Common Wyoming 1031 exchange mistakes
- Skipping the exchange because Wyoming has no tax. The federal bill on a $300,000 gain can be $76,400.
- Assuming a move to Wyoming clears old clawbacks. California, Oregon and Montana can still tax gain deferred from property you sold there.
- Underwriting a rental with an owner-occupied tax bill. The 25% homeowner exemption does not apply to investment property.
- Exchanging a Jackson Hole second home. A home used mostly by the family is not held for investment.
Start your Wyoming 1031 exchange
Contact us before closing so we can prepare the exchange agreement and assignment for your title company. Start your exchange or book an intro call.
Frequently asked questions
How can I avoid capital gains tax on real estate in Wyoming?
Wyoming does not tax capital gains, so the only tax to plan for is federal. A 1031 exchange into like-kind investment property defers the federal capital gains tax, the 25% depreciation recapture rate and the 3.8% net investment income tax.
Does Wyoming have a capital gains tax?
No. Wyoming has no personal income tax, so gains on real estate and other assets are not taxed by the state.
Is there a transfer tax when selling real estate in Wyoming?
No. Wyoming has no real estate transfer tax. Sellers pay normal closing costs such as title insurance and county recording fees.
Does Wyoming withhold tax from nonresident sellers?
No. Wyoming has no state withholding on real estate sales. A nonresident's home state may still tax the gain, and foreign sellers are subject to federal FIRPTA withholding.
Can another state tax my gain after I move to Wyoming?
Yes, in some cases. If you exchanged property from California, Oregon or Montana, those states can tax the deferred gain when you sell the replacement, even as a Wyoming resident.
Sources
- Wyoming Department of Revenue, Property Tax Division: Residential
- Wyoming Department of Revenue, Property Tax Division: Commercial and industrial
- Wyoming Property Tax Division: Owner-occupied homeowner exemption
- Wyoming Property Tax Division: Property tax relief programs
Related: Montana, Colorado, South Dakota, Idaho, and all 50 states.
This page gives general information about Wyoming and federal rules and is not tax or legal advice. Check your situation with a CPA before selling.
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